In the rapid acceleration of innovation; a patent on an invention is one of the first moves made to protect an intellectual asset.
The real value, however, comes from effective management of the patents to ensure that, for the full term of the patents, the invention remains protected from the competitive market.
Patents do provide exclusive rights for a patent holder to practice, use, sell, or import the invention, but these rights can disappear without meaning and incomplete management. Defending the rights to the invention for the longest time possible involves planning, action, and management of the protective rights.
Most utility patents the type covering useful inventions grant protection for up to 20 years from the earliest filing date of the non-provisional application. This term allows inventors to recover their costs associated with the research and development, and the commercialization of the inventions, and, at the same time, it stops competitors from unauthorized exploitation of the same idea.
However, the 20 years is not a guarantee. A patent term can be shortened to a few years when a patent owner fails to pay a maintenance fee, ultimately resulting in the prior invention becoming available to the public before the end of the patent term.
Design patents have a lifespan of 15 years from the date they are issued, while plant patents have a duration that is similar to utility patents, however, the focus will be on utility patents, which are the most critical component of patent-based technology and product innovations.
Because patents have an expiration date, they become from enforcable to freely use, make, and sell. This is why it is critical to obtain long enforceable terms to secure maximum value for patents.
In the United States Patent and Trademark Office (USPTO) system, they treat patent renewals as a type of maintenance fee. To keep a patent in force throughout its entire term, each inventor and patent holder needs to pay maintenance renewals.
These renewals are not optional. They are mandatory, as failure to pay these fees will result in a patent expiration before the complete 20 year term elapses.
The USPTO requires the payment of maintenance fees at three, specific time intervals. These intervals are 3.5 years, 7.5 years, and 11.5 years post patent grant.
With regards to protection on the patent, the fees that are assessed at these time intervals are progressively higher, demonstrating the increased value and expenses associated with the protection.
The costs associated with the fee are intended to protect the competitive advantage associated with the patent. The maintenance fees serve to continue enforcement of the patent. If the fees are not paid on time, the patent will not be protected and the competitive advantage will not be sustained.
Failing to address these Patent Renewal(s) can lead to irreversible loss. If overlooked, the patent lapses, and reinstatement is possible only under limited conditions, such as proving unintentional delay, paying surcharges, and meeting strict deadlines.
Proactive renewal management avoids such risks and safeguards the invention's long-term exclusivity.
Long-term rights to your invention are more complex than most people anticipate. You must note every deadline starting from the date of the grant.
If there are concerns about missing deadlines, you can consider using IP management software, calendar reminders, or even hire a professional service to do it.
Some offices will allow you to make payments a little bit early or even within a six-month grace period (obviously you have to pay a fee to do this).
In advance of every renewal, you will need to assess the patent’s ability to make money. You need to consider whether the invention is still monetizing, whether there are new competitors, and whether there are significant changes to the market.
If the patent is no longer worth the cost, you can just let it expire in some places. That can also make it easier to spend money on better patents.
You also need to consider this when you have patents in multiple countries. For example, European patents start charging renewal fees earlier than American patents do.
Consulting with some of the above professionals (patent attorneys, renewal specialists, etc.) may be necessary for complicated issues.
These professionals guide you through the various rules, compute the necessary adjustments (like Patent Term Adjustment due to USPTO delays) and extensions in some regulated areas (like the pharmaceutical sector).
These types of costs can be anticipated in your budget, and as such, part of your IP strategy transforms the maintenance costs into an investment rather than just a cost.
The right to a patent is not a one-time exercise, and the value of a patent extends far from the moment of its initial grant.
Investors and businesses can manage the Protective Period of their inventions' time within the scope of the patent, and with careful prioritization of Renewal Patent(s), these participants create the most optimum Protective Period.
When these mechanisms are in place, innovation is fortified, sustainable revenue is generated, market share is defended, and infringement is mitigated, if not eliminated.
Incorporate patent maintenance in your IP policy from the start, as any invention's value is determination is directly reliant to the time of protection and different revenue streams derived from that time.
