1. Patents can be used collaterals to have loans. If you look into the assignment database of the usa Patent and Trademark Office (USPTO), you will see that many patents are used on various banks. That is because patents are treated as tangible assets. They have their very own values, plus they can freely be transferred from owner to a new, just like any other tangible properties. Banks may use patents as collaterals on the loans they lend so that if your default occurs, they are able to seize the patents in an effort to remedy the default.
2. Patents may be used to increase a company's value. A company's patent portfolio could be appraised, and it is value can put into the business's total asset value. Once the clients are offered on the market, the need for its patents might help drive its sales price. The stock values of public companies can also increase once they acquire patents either by pursuing their own innovations, licensing, or purchasing them.
3. Patents may be used to settle disputes or lawsuits. Small companies may think they just don't must obtain patents once they don't intend to be plaintiffs in infringement lawsuits. However, they do not understand that patents might help have them off infringement disputes or litigation. This is especially common in industries where the major players own various patents. When two companies inside the same industry fight in the courtroom over intellectual property infringement, the lawsuit oftentimes is resolved through cross-licensing. One cross-licensing scenario may involve Company A licensing a patented component from Company B, and Company B licensing a patented manufacturing technique for an alternative product from Company A.
4. Patents have defensive uses. With these, competitors may be discouraged from obtaining rights to similar ideas, which consequently decreases the chance of competitors enforcing an infringement action against your company. Additionally, with patents, competitors could be deterred from developing, selling or making similar items.