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Patent: Definition, Example and Related Terms

What is a Patent ?

A patent is a legal grant provided by a government that gives the inventor or patent holder exclusive rights over their invention for a specified period, typically 20 years from the filing date in most jurisdictions. This means that the patent holder can exclude others from making, using, selling, or distributing the patented invention without their consent.

The primary purpose of a patent is to encourage innovation and invention by providing inventors with a temporary monopoly to commercially exploit their inventions. In return, the inventor must publicly disclose how their invention works, contributing to the broader pool of knowledge.

There are different types of patents including utility patents, which cover new processes, machines, or compositions of matter; design patents, which cover new, original, and ornamental designs for a manufactured product; and plant patents, which are granted for new and distinct plant varieties.

Securing a patent can be a complex process that often requires detailed descriptions, claims defining the scope of the invention, and sometimes even prototypes. The process may involve patent examinations to ensure the invention is novel, non-obvious, and useful.

It's crucial for businesses and inventors to protect their inventions through patenting, as patents can provide significant competitive advantages and can form a vital part of a company's intangible assets.

Example(s)

  • Scenario Description
    An electronics company develops a new type of battery that lasts twice as long as existing models. The company files for a patent to protect their invention, ensuring that no other company can produce, use, or sell this new battery technology without permission. The patent, once granted, will provide the company with a competitive edge in the market.
    A software developer creates a unique algorithm that improves data processing speeds exponentially. By patenting the algorithm, the developer gains exclusive rights to offer this software solution commercially, allowing them to license it to other companies or maintain exclusivity in its utilization.

Related terms