Want to protect your innovations and boost your company’s value? Here’s how to build a strong patent portfolio in 7 steps:
- Set clear business goals
- Research existing patents
- Choose which ideas to patent
- Plan your patent filing
- Set up a patent management system
- Make money from your patents
- Update your portfolio regularly
A well-managed patent portfolio can shield your R&D investments, open new revenue streams, and attract investors. NuCurrent Inc. earns millions in licensing fees with just 29 patents.
Quick comparison of key patent types:
| Patent Type | What It Protects | Best For |
|---|---|---|
| Utility | How an invention works | New processes, machines, or compositions |
| Design | Ornamental appearance | Unique product designs |
| Plant | New plant varieties | Asexually reproduced plants |
It’s not just about having patents—it’s about having the right patents that align with your business goals.
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1. Set Clear Business Goals
To build a strong patent portfolio, match your patent plans with your business aims.
Link Patents to Business Plans
1. Identify key business objectives: Look at growth plans, target markets, and long-term vision.
2. Align patent strategy: Focus on innovations that support these objectives.
3. Involve key stakeholders: Work with CTO, CPO, senior engineers, and executives to define strategy.
| Business Goal | Patent Strategy Focus |
|---|---|
| Expand into new markets | Secure protection in key jurisdictions |
| Lead in innovation | Prioritize breakthrough technologies |
| Enhance operational efficiency | Patent process improvements |
Find Key Areas to Protect
- Analyze market trends for gaps
- Evaluate core technologies
- Consider future developments
"A patent acts as your idea’s guardian, ensuring that the innovation you’ve poured your heart and sweat into remains exclusively yours to develop and profit from." – TT Consultants
2. Research Existing Patents
Know what’s already out there to find new chances and avoid stepping on others’ toes.
Search for Related Patents
1. Use free tools: Try Google Patents, Espacenet, or USPTO database.
2. Check different classes: Look at all patents in relevant classes.
3. Go beyond keywords: Think about how others might describe similar ideas.
4. Look at recent filings: Focus on patents from the last 5-10 years.
| Database | Coverage | Key Features |
|---|---|---|
| Google Patents | 87+ million patents, 17 countries | Easy-to-use interface, machine translation |
| Espacenet | 110+ million patents, 97 countries | Smart search, patent families |
| USPTO | U.S. patents | Full-text access, official U.S. database |
Find Gaps to Fill
- Spot white spaces
- Check patent families
- Look at citations
- Consider new uses
About 80% of patents never make money. Focus on gaps that match your business goals and have market potential.
"A white space analysis looks beyond commercially active embodiments to identify potentially valuable opportunities that are not yet protected." – U.S. Patent and Trademark Office
3. Choose Which Ideas to Patent
Pick ideas that will make money and fit your long-term plans.
Check Market Potential
- Identify your target market
- Do market research
- Look at competitors
- Check if it solves a problem
| Question to Ask | Why It Matters |
|---|---|
| Who will buy this? | Helps focus your marketing |
| What need does it meet? | Shows the value of your invention |
| How is it better than what’s out there? | Highlights your competitive edge |
| Can people afford it? | Ensures there’s a market for your product |
Weigh Long-Term Value
- Fit with business goals
- Tech trends
- Licensing potential
- Defense against competitors
"A patent may be broad or narrow, covering various products or processes, and can have widely varying value." – U.S. Patent and Trademark Office
Ask yourself:
- What are consumers looking for?
- Does the product meet their needs?
- Is the price fair for what it does?
- Will many people want this, or just a few?
4. Plan Your Patent Filing
Choose the right application type and consider global protection options.
Pick the Right Application Type
| Patent Type | What It Protects | Best For |
|---|---|---|
| Utility | How an invention works | New processes, machines, or compositions |
| Design | Ornamental appearance | Unique product designs |
| Plant | New plant varieties | Asexually reproduced plants |
Filing options: 1. Provisional application: Quick, less formal, "patent pending" status for 12 months. 2. Non-provisional application: Full patent application, starts official review process.
"The cost of filing a patent can vary significantly. Professional fees for a provisional application are generally lower than those for a non-provisional patent application, which typically range from $8,000 to $15,000." – U.S. Patent and Trademark Office
Consider Global Protection
- Paris Convention: File in member countries within 12 months of first filing.
- Patent Cooperation Treaty (PCT): Single "international" application for over 150 countries.
| Option | Pros | Cons |
|---|---|---|
| Paris Convention | Quick for few countries | Separate filings needed |
| PCT | More time to decide | Can be more expensive initially |
"Budgeting for seeking patent protection outside the United States can range from $15,000 to $50,000 per country over the 20-year life of the patent, including official filing fees, translation fees, and legal fees." – World Intellectual Property Organization (WIPO)
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5. Set Up a Patent Management System
Stay organized and on top of crucial deadlines.
Keep Track of Deadlines
- Use IP management software for automated reminders
- Implement a docketing system
Plan for Ongoing Costs
| Maintenance Fee Due | Years After Grant | Large Entity Fee |
|---|---|---|
| 1st | 3.5 | $2,000 |
| 2nd | 7.5 | $3,760 |
| 3rd | 11.5 | $7,700 |
"If every application incurs an additional cost of $500 in a given year, a portfolio of 100 applications would require an additional $50,000 in the annual budget." – U.S. Patent and Trademark Office
To manage costs:
- Track extension fees separately
- Analyze data to spot areas for cost reduction
- Consider outsourcing for larger collections
6. Make Money from Your Patents
Turn your patents into revenue.
License Your Patents
Two main types:
- Exclusive license
- Non-exclusive license
When setting up a deal:
- Aim for 3-5% royalties
- Consider higher rates for groundbreaking tech
- Use a clear agreement template
"If your business has no plans to expand production or sales overseas, patent rights may have extra value through licensing to an overseas non-competitor." – U.S. Patent and Trademark Office
Find Buyers or Partners
Options:
- Sell your patent outright
- Form a joint venture or partnership
To find potential buyers or partners:
- Use patent marketplaces
- Look for companies with rejected applications
- Attend industry events
Always use NDAs during negotiations.
7. Update Your Patent Portfolio Regularly
Keep your portfolio current in a changing market.
Review Your Patents Often
- Check each patent every 6-12 months
- Ask if it still helps your business
- Check for newer tech impacts
Adjust to Market Changes
- Watch industry trends
- Monitor competitor patents
- Consider legal changes
| Before Alice Decision | After Alice Decision |
|---|---|
| More software patents | Fewer software patents |
| Focus on new tech | Focus on existing tech |
| Higher patent numbers | 9% drop in annual patents |
To stay updated:
- Set up legal alerts
- Join industry groups
- Talk to R&D often
"The cost of maintaining granted patents tends to increase with the age of the patent." – World Intellectual Property Organization (WIPO)
Be smart about which patents you keep.
Conclusion
Main Steps to Remember
- Set clear business goals
- Research existing patents
- Choose ideas wisely
- Plan your filing strategy
- Set up a management system
- Make money from your patents
- Update regularly
Why Good Patent Management Helps
- Protects innovations
- Attracts investors
- Opens new income streams
Qualcomm earned $6.3 billion from patent licensing in 2022.
| Benefits of Good Patent Management |
|---|
| Protects innovations |
| Attracts investors |
| Creates new income streams |
| Helps stay ahead of competitors |
| Increases company value |
"Securing patents not only protects your innovations but also attracts investment and sets the stage for future growth." – TT Consultants
FAQs
How to build a patent portfolio?
- Identify your business goals
- Set a budget
- Complete an Invention Disclosure Report (IDR)
- Prioritize your IDRs
- Identify filing deadlines
- Estimate filing costs
- Create a filing calendar
IBM was granted 4,743 patents in 2022, leading for 30 years.
| Step | Action | Purpose |
|---|---|---|
| 1 | Identify business goals | Align patent strategy with company objectives |
| 2 | Set budget | Manage patent-related expenses |
| 3 | Complete IDRs | Document and assess patentability of ideas |
| 4 | Prioritize IDRs | Focus on most valuable inventions |
| 5 | Identify deadlines | Ensure timely patent applications |
| 6 | Estimate costs | Prepare financially for patent process |
| 7 | Create filing calendar | Track important dates and deadlines |
"A strategic patent portfolio is more than a collection of individual patents; it’s a comprehensive approach to intellectual property management that supports broader business objectives." – Michael Jones, Founder and Managing Member of Jones Intellectual Property
