2018-01-26
What is the first thing that comes to your mind when you think of the term, patents? You may probably think of a patent as a ticket to a market that is exclusively yours. Many patent lawyers and agents in Edmonton will agree to the fact that many inventors operate under the misconception that getting a patent is equal to owning and controlling the market of its sale. In short, many inventors believe that a patent is a monopoly. But, as patent lawyers and agents, we try to help our clients understand what a patent is really offering. In truth, a patent is not a monopoly. To find out why let’s define monopoly and understand patents in relation to it.
What is Monopoly?
In simple terms, a monopoly is a market condition where an individual owner has exclusive control of a product or service, and where this control restricts the entry of new players and also makes price manipulation possible.
If you look at the patents for various products and technologies, then you will see that none of them have contributed in creating a monopolistic market for their holders. For instance, Apple owns several patents in the smartphone segment. But, that didn’t prevent other players from entering the market or competing in the premium phone division. Yes, Apple has some power to control the price of its products, however, this power has nothing to do with patents. Instead, it solely relies on the market or the loyal customer base the brand has created for itself. A loyal Apple customer will go for an iPhone irrespective of whether or not the product is patented. Thus, patents play little role in monopoly. In fact, there are patents that have seen little to no commercial success. And, where there’s no market, how can there be a monopoly? This is only one of the reasons that patents don’t generally create a monopoly.
Do Patents Offer Monopoly?
Here are three reasons that show that patents are not a monopoly:
Patents are a Negative Right
A patent provides you with the right to prevent others from making, using, selling, or offering for sale, the same or identical invention. But, this right is restricted to what you have defined in the claims of your patent application. If a competitor can create a product that is beyond the scope of your patent claims, they can use that opportunity to enter the market with their competing product and make money. If their product is beyond the scope of your patent claims then you cannot stop them. It is arguable, therefore, that a patent does not offer any monopoly. If you continually innovate and obtain more patents, it may be possible for you to dominate the market, but it is unlikely that you will be the only person in your market. Take a cue from Apple’s patent strategy.
Patents Don’t Guarantee Customers
Market or customers for a particular product or service is a necessity for monopoly. Obtaining a patent does not come with the guarantee that customers will buy your product or service. In fact, successfully commercializing a patent can be difficult. There are many patents, like a method for walking a snake, that didn’t see much success. If your invention is novel, non-obvious, and useful, then you are likely eligible for a patent. However, obtaining an issued patent does not guarantee that you will make money. Without a market and customers, a patent can never create a monopoly.
A monopoly is a market condition that comes with the success of an invention, whether patented or not. Many patent lawyers and agents will suggest that you approach inventing as a business. With endless innovations on inventions being possible, having a patent that creates a monopoly sounds too good to be true. Consult patent lawyers or agents to obtain assistance in analyzing your invention’s commercial viability, instead of relying on such myths.
