Understanding Patent Applications as Legal Title to Your Invention

When will the patent issue? I often get this question from inventor clients of mine. But the answer is not as crucial as you might think. A patent is a significant business asset, comparable to the title of your house or car. You don’t hold the title to your house merely to sue trespassers. Instead, you can apply for loans, use it as collateral, live in it, or sell or rent it. Similarly, a patent application serves as legal title to your invention. It adds considerable value to your business during valuation.

Once you file your patent application, it enters the examination phase. This typically takes 12-18 months, but it can take longer depending on the examiner’s workload and backlog. During this period, the examiner will review the claims you have made in your application.

If the examiner allows all your claims, they will issue a Notice of Allowance. You then need to pay the necessary fees, and the patent will be issued sometime after that. However, it is more common to receive a first action rejection. This does not mean you cannot obtain a patent for your invention. It usually requires a phone interview with the examiner to discuss a path forward, followed by filing a formal response to address the rejections. It’s important to note that additional fees will apply in either scenario.

There is no guarantee that the examiner will allow a patent to issue. The outcome depends on what the examiner finds that is similar to your invention and whether they believe your invention is patentable.

The most crucial aspect to remember is that your patent application serves as legal title to your invention. This is similar to the legal title to your home or car. With this title, you can license or sell your invention without waiting for the patent to issue. This means you don’t have to delay your business opportunities.

An issued patent mainly provides the right to sue someone for infringement in court. However, there are many business opportunities beyond suing that become available once you hold the title to your invention.

To summarize, a patent application is a significant business asset. It serves as legal title to your invention, much like the title to your house or car. This title allows you to license, sell, or use your invention as collateral. The examination process can be lengthy, but the primary value lies in holding the title, not just the issued patent. So, don’t wait. Leverage your patent application to explore various business opportunities and protect your innovative ideas effectively.

Key Points to Remember:

• A patent is a business asset, comparable to the title of a house or car.
• The examination phase takes 12-18 months, sometimes longer.
• If the examiner allows all claims, a Notice of Allowance is issued.
• First action rejections are common, requiring further action.
• The patent application is the legal title to your invention.
• You can license or sell your invention with the application, without waiting for the patent to issue.
• The issued patent mainly provides the right to sue for infringement.
• Holding the title allows for various business opportunities beyond litigation.

Navigating the patent process can be complex, but understanding the significance of your patent application as legal title can help you maximize the value of your invention.