Competition means needing to innovate, as creating a new manufacturing process, plant variety or machine could lead to one company’s dominance of a particular industry. Successfully prosecuting a patent allows a business that invests in research and developments to protect any innovations that they introduced in their industry.
When a company has a patent for a particular process or concept, it can prevent its competitors from unfairly competing by stealing its intellectual property. Sometimes, disputes between companies arise because one business alleges that the other violated its patent rights.
For companies with an existing patent violated by another business, it may be possible to demand that they cease patent infringement or to arrange for financial compensation for the use of the patent. A recent big business settlement shows the value of patents for those who intend to disrupt their industry with a major advancement.
Apple and Ericsson have resolved in a protracted dispute
Ericcson is a Swedish electronics company, and Apple is a global power player in the computer industry. These two powerhouses have been locked in a dispute for months over 5G wireless and iPhones. Ericsson accused Apple of patent infringement, and Apple filed a separate suit alleging manipulation to renew a patent agreement.
The companies finally settled after negotiating a multi-year licensing deal. Apple obtained permission to use certain patents, while Ericsson secured royalty payments through the licensing agreement that will result in millions of dollars in profit.
Without a patent, financial justice can be harder to secure
Even when there are business records affirming when you started using a certain concept, failing to protect a new manufacturing process or design feature with a patent we’ll make it much more difficult to fight back if a competitor tries employing the same process to copy your success.
Innovation can be expensive, and even when it is not, protecting new concepts is often key to protecting one company’s share of the market. Patent prosecution is a very complex and time-consuming process, and even companies that have basic in-house legal counsel may benefit from cooperating with those experienced in this unique area of law.
Pursuing a patent or enforcing one can protect your company’s financial future by ensuring that you control who uses your cutting-edge concepts and profit from those that do.