Research and development, as well as patent prosecution, can be expensive processes. It could take years of investment before a company has new advances worth patenting and marketing. The process of getting the patent can take some time and will require additional financial investments.
The value of a patent is obvious. A company stands to generate significant profits when it has technology at its disposal that competitors cannot use or the ability to create a product that other businesses cannot replicate. Obviously, there are operational benefits to having a patent, but it takes quite a bit of expense and effort to develop a concept, product or technology that you can patent and even more time and effort to successfully prosecute that patent.
Companies won’t have to wait until new technology goes into production to benefit from a patent. They will likely see an uptick in value as soon as they have a patent for that technology.
A medical firm demonstrated the financial benefit of obtaining a patent
If you needed proof that the investment your business made in research and development will eventually pay off, look no further than Tonix Pharmaceuticals. They recently received a patent for a vaccine that could protect against smallpox and monkeypox.
This patent will give the company the exclusive right to produce a vaccine that could see a massive surge in domestic demand in the next few years until 2037. After the approval of the patent, the company’s stock prices increased by 66% after trading at a one-year low just a week prior.
Provided that the production and rollout of the vaccine go as intended, the company’s sole right to produce the vaccine will likely mean even greater increases in stock price and more profits. They can also increase their value by licensing the right to use their patented technology to other companies.
Complex ideas require complicated patent prosecution
Even for a business that has existing legal resources, patent prosecution can be a challenge. Technological and medical advances, in particular, can be difficult to prosecute successfully.
Partnering with outside support in addition to their in-house legal team will increase their chances of success during patent prosecution and may even speed up the process.