[Patent Talk] Why Securing Patent Rights Matters

This column by patent attorney Taeyoung Lee of our firm was published in Etoday on May 11, 2021. It discusses the purposes of securing patent rights and why CEOs and CTOs need to practice IP management.

[Patent Talk] Why Securing Patent Rights Matters

In my recent practice, I have seen many individuals and startups, as well as small and medium-sized enterprises (SMEs), inquiring about filing applications for intellectual property (IP) rights such as patents, trademarks and designs. This seems to reflect not only broader awareness of the importance of IP but also the expansion of government IP finance policies. As a patent attorney, I welcome this broadening interest in IP, but founders need to analyze more rigorously why they need to secure IP.

First, the essential purpose of securing a patent is to obtain an exclusive position in the market. Many businesses today are built on new business models rather than new core technologies. If a company launches its business without securing patent rights, latecomers can imitate it, and the company may fail to secure an exclusive position and instead end up in a red ocean where it must compete on price.

Second, patent rights can be used for marketing. If a patent covers an actual product or service, the company can highlight it on packaging or in advertising materials to show consumers the product's competitiveness. Note, however, that while a patent is still pending, the term "patent pending" (with the application number) must be used instead of "patented."

Finally, patent rights are treated as intangible assets of a company and can be used in IP finance. With the recent expansion of IP finance policies, startups and SMEs that hold patents can enjoy significant benefits in loan amounts and interest rates. The number and quality of patents can also have a considerable impact when the company later seeks investment.

All of the above purposes have one thing in common: they require patents of at least a certain level of value. Only when a patent has an appropriate scope of protection can it secure an exclusive position for the business, and only on the basis of that exclusive position can it be effectively used in marketing, IP finance and attracting investment.

If the value of a patent is not assured...

(Please click the link below to read the full column.)

LNB IP Law Firm