WORLD PATENT RIGHTS

Pro’s and Con’s of Patent Rights Versus Dot Coms

Patents are generally worth significantly more today than just a few years ago. In the past few years record judgments have been awarded to patent holders. Patent Rights in electronic inventions is a booming field, and still largely virgin territory.

Years before the dot-com bust investors repeatedly warned that they lacked patent rights, and their business models were often easily copied. Though the dot-com industry is also high tech, it should not be confused with patent rights. Grabbing patent rights today is in many ways similar to the famous land grab that occurred in the U.S. in the 1800's. Most fields of future patent rights are un-chartered or with few competitors. It is first come, first serve to chart your patent right claims for all who seek your invention.

The rate at which inventions are being created is increasing. A growing chunk of the world’s economy is in the form of developing and licensing intangible patent rights. Because the electronic invention revolution is only starting, there are large domains of potential inventions that have yet to see the light of day.

Economists have repeatedly warned there is little one can hold on to when investing in most internet start-ups. Patent pending inventions generally have about 20 year life spans from the date of initial patent application filing. Dot coms are frequently without property rights, hence easy to copy. How can dot coms compare with the staying power of good patent rights? Someone else can open another web site selling the identical items as one’s internet start-up and at a lower price. The licensee of our patent rights can control pricing.

Generally, patents are stronger weapons in the market place than a typical dot com’s brand name loyalty. The field of dot coms is beginning to over crowd because they don’t require patent rights to establish themselves. Dot coms in general copy other dot com, hence are vulnerable to competition. Patent rights however keep others from using the same invention.

Background Information On Patent Rights Versus Dot Coms

Intangible Rights:

When a physical invention is sold the seller ceases to own it. But when patent rights are developed it can be sold as licensing over and over again in the form of many tangible inventions.

Dot Coms:

-Dot com companies generally have their brand name loyalty and company size as their strongest market place weapons against competitors. Competitors often can copy and offer similar web sites. Competing sites can find many ways to get venture capital and compete with brand name sites.

-Some dot Coms like www.ebay.com have patents on software programs that keep competitors away, but generally these patents are narrow in scope and quickly outdated because they lack broad coverage.

-Where’s the exclusivity in dot coms which are usually glorified merchants selling what other can easily offer?

Umbrella Patent Rights:

-Our inventions generally cover very broad ranges. They are often totally new concepts not relying on improvements of signal processing to keep out competitors. Someone who makes an improvement to our invention may be doing so on it’s signal processing.

-Examples of Umbrella Inventions: Radio; Television; Telephone.

-Examples of Narrow Inventions: Improvements to the listener’s sound quality in any of the umbrella inventions.

The "Proximity" Invention Example:

-Umbrella patent right:

A signal is sent whenever any two parts separate themselves beyond a certain distance.

-Narrow "Proximity" patent right example:

The mother is alerted whenever her child wanders off more than fifteen meters.

A tangential patent right example:

-An invention that is similar but different from another invention, this time the fun example is being compared with the "Proximity" invention:

-We have the scenario of the engineer that is partially addicted to television watching. He wishes to rid himself of the habit so he can be productive. It happens that developing and profiting from his invention is his life’s goal. He has rigged his TV’s control panel not to turn on until he has produced a minimum amount of work. He programmed his computer to require the input of a designated volume of pages, or time spent on the computer. This work volume must be accomplished over the past 48 hours. The invention determines he is in the home by virtue of his having entered a password to enter into his home, and only allows the TV to function if he is meeting the goals he has set for himself.

Internet start-ups:

-If you are considering working for or investing in an internet start-up, ask about any umbrella patent rights they are unlikely to have.

-They generate money primarily from investors. Profits from cash flows are rare.

-Investors flock to internet companies in the hopes of establishing company name loyalty. But the old economy emphasis of brand name loyalty is somewhat displaced as web surfers are becoming less brand name loyal by the year.

-The visible multitude of internet companies are in easy reach of investors.

Other Benefits:

-Should you not for some reason get the major financial windfall as soon as you expected; you should find our partnership intellectually stimulating, and learn skills.

-Shares in other possible patent rights: If one invention doesn’t work, another might. We hope to help you by providing an alternative invention, should you need rescuing.

Pricing & The Internet:

-The internet allows clients to better compare prices for the same products produced by different manufacturers. This will squeeze average profit margins for companies that lack patent rights. Patent rights allow virtual monopolies and price control.

Design a Better Mouse Trap And They Will Come:

-Multiple dot coms can compete to sell the identical invention, shrinking profit margins for the merchant.

-Patent Rights allows the licensee to charge the highest price possible, so enough will buy the invention. There is a balance between price and number of units sold, to generate the maximum annual profit.

-The licensee can sell the invention via many channels including the web. The licensee can determine the wholesale price, allowing multiple internet companies to compete by adding minimal profit margins for their pockets.

(C) World Patent Rights 2001