Patents play many important roles in business world

A patent is a right granted to an inventor by a country to prevent others from using the invention.

It provides the patent owner with the legal right to stop others from making, using or selling the patented invention, as well as the right to collect damages for any violation of that right.

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Once granted, a patent is presumed valid for 20 years from the date the application is filed, after which the public is free to use the invention.

Patents are a vital component of small startup businesses. They protect the products or business of a startup company from competition in the early years and are especially important for attracting private funding for growth.

Furthermore, it is easier for a small business with well-protected technology to attract partners for technology development, marketing or other resources.

Large companies often seek small businesses with patented technologies for partnership or acquisition to expand into new markets. Patents also allow the owners to license the technology to generate revenue. A small business will often license the use of its technology to another company for use in a different field or product. That makes patents a critical resource for the survival and growth of small businesses.

Patents are granted for new and useful inventions and discoveries. In order to be patentable, an invention must be novel and non-obvious and should be of appropriate subject matter. Patentable discoveries may include a new process, a machine, an article of manufacture, a composition of matter, or an improvement to any of the above. Plants and other living organisms can be patented provided they meet the criteria. Also, designs that have no function other than appearance can be patented.

Another form of intellectual property protection is a copyright, which allows for the protection of original or artistic works that exist in fixed form, such as works of literature, drama, music or art, motion pictures or computer programs.

Patenting can be an expensive and time-consuming process and often requires the services of a qualified patent agent or attorney. Patent protection must be sought in each country to be effective in that country. The associated cost of patenting is a factor that can force occasional inventors or businesses to consider keeping the invention as a trade secret and using it only in their business.

Wisconsin is among the top 15 states in the country in the number of patents issued and is a testament to the innovative spirit of its residents. Out of the 97,913 patents issued in 2004, the state of Wisconsin received 2,051.

Traditionally, universities are engines of technological innovations that result in patent and revenue generation. According to 2003 figures, about $38 million was generated from UW-licensed technologies, and entrepreneurs routinely seek university-developed technologies for startup businesses.