Demystifying Patents: A Guide for Commerce Entrepreneurs

The US Patent and Trademark Office reviews and approves patent applications, which provide protection against others stealing your original idea.

In the fast-paced world of commerce, innovation is the lifeblood of success. Yet, many entrepreneurs overlook a critical tool in their arsenal: patents. But what exactly is a patent, and why should commerce merchants and aspiring entrepreneurs care?

A patent is a powerful legal instrument that grants inventors exclusive rights to their creations for a limited time, typically 20 years. It’s not only a piece of paper; it’s a legal shield against copycats and a potential goldmine for innovators. Patents are a right granted to an inventor that allows them to exclude all others from making, using, or selling their invention for this period.

In the United States, the US Patent and Trademark Office (USPTO) reviews and approves patent applications, providing protection against others stealing ideas. Once approved, the patent holder becomes the sole person or company permitted to make, use, or sell the product, process, or solution to a technological problem they have developed and registered. All others are prohibited unless given explicit permission.

Why patents matter in commerce

Imagine spending months perfecting a unique product design, only to see it replicated by competitors within weeks of launch. This scenario is all too common in the cutthroat world of commerce. Patents provide a crucial defense against such occurrences, allowing inventors to reap the rewards of their hard work.

In the ecommerce sector, innovative packaging solutions, unique product designs, or novel business methods could all potentially benefit from patent protection. Without it, valuable intellectual property could be easily copied, potentially resulting in significant lost revenue.

Types of patents: finding the right fit

Not all patents are created equal. Decide which type of patent best suits your needs. The USPTO recognizes three main types:

1. Utility patents

Utility patents are the most common type of patent issued by the USPTO. They protect new and useful processes, machines, articles of manufacture, or compositions of matter, or any new and useful improvement thereof. Essentially, utility patents cover how an invention works and what it does.

Examples of utility patents are diverse and span various industries:

• Consumer goods: The little sticker Starbucks gives out with its cups.
• Medicine: New drug formulations or medical devices.

2. Design patents

According to the USPTO, a design patent protects “the visual ornamental characteristics embodied in, or applied to, an article of manufacture.” Unlike utility patents, design patents don’t protect any functional features of the item. These patents safeguard the ornamental design of functional items, playing a crucial role in industries where aesthetics significantly influence consumer choice.

Examples of products protected by design patents include:

• Beverage containers: The iconic contour shape of the Coca-Cola bottle, first patented in 1915, is a classic example of a design patent. This distinctive shape has become synonymous with the brand, demonstrating the power of protected design in marketing.
• Footwear: The distinctive sole patterns of shoes, like those of Christian Louboutin’s red-soled shoes, can be protected by design patents.

3. Plant patents

Plant patents were introduced in the United States in 1930 through the Plant Patent Act. According to the USPTO, a plant patent is granted to an inventor who has invented or discovered and asexually reproduced a distinct and new variety of plant, other than a tuber propagated plant or a plant found in an uncultivated state. This unique category of patents plays a crucial role in agricultural innovation and ornamental horticulture.

Examples of plants that have received patent protection include:

• Ornamental plants like the Smooth Angel rose, patented in 1994, were known for its unique petal formation and color.
• Fruit varieties like the Honeycrisp apple, known for its sweetness and crispness, was patented by the University of Minnesota in 1988.

The patent process: a journey, not a sprint

While many inventors may want to rush out and apply for patent protection as soon as they come up with a revolutionary new idea, many experts suggest otherwise. The patenting process can cost in the neighborhood of $25,000. Unless you’re sure your idea is commercially viable—meaning that you can make money from it—you may want to hold off filling out the paperwork.

More important than protecting your idea is developing it and confirming that it has value. Will others pay to buy it, use it, or incorporate it into their product? Why spend money on protection for a product no one wants?

Before diving into the patent application process, consider these steps:

1. Document your invention meticulously. Either fill out a disclosure document with the US patent office, which documents the date of conception, or detail your idea in an inventor’s notebook. This establishes the date on which you came up with the idea, in case anyone ever questions the timeline.
2. Conduct a thorough patent search to ensure your idea is truly novel. Check to be sure no one else has already patented your idea at the US patent office.
3. Assess the commercial viability of your invention. Invest in a market feasibility study conducted by a company that specializes in them. Such studies look at start-up costs, market demand, safety, and production feasibility to determine if there is a market for your new idea. They cost a few hundred dollars, which is better than the thousands the patent will cost.

Remember, the patent process can take several years, and your application can be rejected for a number of reasons, such as if it is too close to another existing patent.

Leveraging patents for business growth

Patents aren’t just defensive tools; they can be powerful assets for business growth. They can:

• Attract investors by demonstrating the uniqueness of your product
• Generate revenue through licensing agreements
• Provide a competitive edge in crowded markets

However, patents also come with responsibilities. Maintenance fees, potential litigation, and the public disclosure of your invention are all factors to consider.

In conclusion, patents are a double-edged sword in the world of commerce. They offer robust protection and potential for growth, but also require significant investment of time and resources. For entrepreneurs with truly innovative ideas, the benefits often outweigh the costs.

As you navigate your entrepreneurial journey, consider whether patenting could be the key to unlocking your business’s full potential. Remember, in the world of commerce, protecting your innovations isn’t just smart—it’s essential.

What is a patent FAQ

How long does a patent last?

In the United States, utility and plant patents last 20 years from the filing date, while design patents last 15 years from the grant date.

Can I patent an idea?

No, you can’t patent an idea alone. Patents are granted for specific inventions, processes, or designs that are novel, non-obvious, and useful.

How much does it cost to get a patent?

Costs vary widely but can range from $5,000 to $25,000 or more, including United States Patent and Trademark Office (USPTO) fees and attorney costs.

Can I file for international patent protection?

Yes, through the Patent Cooperation Treaty (PCT), you can seek patent protection in multiple countries with a single application.

Do I need a lawyer to file a patent?

While not required, it’s highly recommended due to the complexity of patent law and the application process.