www.asiaiplaw.com Open in urlscan Pro
172.104.63.121  Public Scan

Form analysis
2 forms found in the DOM

GET https://www.asiaiplaw.com/search

<form method="get" action="https://www.asiaiplaw.com/search" class="form-inline">
  <div class="form-group"><label for="search-keyword" class="sr-only">Search</label>
    <div class="input-group">
      <div class="input-group-addon pr0"><i class="fa fa-search"></i></div> <input type="text" id="search-keyword" placeholder="Enter Keyword" name="keyword" value="" class="form-control">
      <div class="input-group-addon pl0 clear-input"><i class="fa fa-times"></i></div>
    </div>
  </div>
</form>

GET https://www.asiaiplaw.com/search

<form method="get" action="https://www.asiaiplaw.com/search" class="form-inline">
  <div class="form-group mb0">
    <div class="input-group">
      <div class="input-group-addon"><i class="fa fa-search"></i></div> <label for="search-keyword-mobile" class="hidden">Search</label> <input type="text" id="search-keyword-mobile" placeholder="Enter Keyword" name="keyword" class="form-control">
    </div>
  </div>
</form>

Text Content

 * Login
 * Register
 * Subscribe

 * Language (EN)
   * Chinese Simplified
   * Chinese Traditional


 * Sections
   * Cover Story
   * In Depth
   * News Analysis
   * The Verdict
   * People & Places
   * IP Analysts
   * Strategy Guides
   * IP Experts
 * Sectors
   * Trademarks
   * Prosecution
   * Pharma & Biotech
   * Patents
   * Media
   * Litigation
   * Licensing & Franchising
   * IT & Telecoms
   * IP Management
   * Industrial Designs
   * Enforcement
   * Dispute Resolution
   * Copyright
 * Jurisdictions
 * IP Awards
 * Events
 * IP Experts
 * Law Firms

Search


Search
 * Login
 * Register
 * Subscribe

 * Language (EN)
   * Chinese Simplified
   * Chinese Traditional

 * Sections
   * Cover Story
   * In Depth
   * News Analysis
   * The Verdict
   * People & Places
   * IP Analysts
   * Strategy Guides
   * IP Experts
 * Sectors
   * Trademarks
   * Prosecution
   * Pharma & Biotech
   * Patents
   * Media
   * Litigation
   * Licensing & Franchising
   * IT & Telecoms
   * IP Management
   * Industrial Designs
   * Enforcement
   * Dispute Resolution
   * Copyright
 * Jurisdictions
 * IP Awards
 * Events
 * IP Experts
 * Law Firms


 1. Asia IP
 2. Section
 3. In Depth


FOR STARTUPS AND SMES: THE WAY TO A COST-EFFECTIVE PATENT STRATEGY

31 October 2024





A patent strategy is crucial for startups and small businesses. While there are
challenges such as budget constraints, Espie Angelica A. de Leon highlights the
competitive advantages, potential for generating revenue through licensing and
effective strategies for managing patent costs. 

-

A patent strategy is a company’s comprehensive plan for acquiring, using,
protecting, enforcing and maintaining its patent assets and rights covering
inventions, technologies and innovations. For a patent strategy to be
well-structured, it should identify the company’s key business goals and outline
the necessary steps to develop a valuable patent portfolio that aligns with
these goals. It should also include a plan for patent commercialization, such as
licensing initiatives, among other strategies.  

However, having a patent strategy comes with challenges. Foremost of these are
the costs involved. In certain jurisdictions, patent prosecution and maintenance
are quite expensive because these require translation of the patent
specification to the local language. Also, the patent process may be lengthy in
some jurisdictions, taking several years, even more than a decade, before the
patent is granted, if it ever is. To begin with, patent issuance is never
guaranteed, and even if a patent is granted, there is no assurance of commercial
success.  

Given these challenges, should a startup firm, small- and medium-sized
enterprise (SME) or any company with limited resources develop a patent
strategy?  

“Yes, it is highly recommended for startups and small businesses to have a
patent strategy, more so for startups and small businesses with tight budgets,”
answered Sneha Gandhi, a partner at Obhan & Associates in New Delhi. 



“While on one hand it provides a competitive edge in the market and opens
avenues for the generation of investments and revenue through licensing and
partnerships, thus providing financial success, on the other hand, it mitigates
the risk of infringing the competitor’s patents and prevents heavy litigation
expenses.”  

It will also bar the market entry of competitors, giving the business enterprise
more time to grow. 



“Having a patent strategy is considered a key aspect of business strategy. If
the startup is developing numerous inventions or innovations that benefit the
company, then having a patent strategy is essential,” agreed Lia Alizia, a
long-time Jakarta-based IP lawyer. 

“I think the first factor to consider is which industry the startup or business
operates in,” said Elisia Engku Kangon, senior associate at Shearn Delamore &
Co. in Kuala Lumpur. “If the industry is innovation-oriented such as the tech
industry or life sciences, then there are good reasons to have a patent strategy
despite a tight budget.” 

According to Kangon, patent grants are especially important to enterprises with
tight budgets, including startups and SMEs since they need to create a “niche”
market to distinguish themselves from their more established counterparts.
Patent rights grant exclusivity, providing a company with an edge in the
market. 

A patent strategy also comes in handy when a small startup or enterprise wants
to apply for funding.  



“For example, Malaysia has launched an IP Filing Fund 2.0, which covers costs
for official fees of the Malaysian Intellectual Property Office and patent
agents’ fees for prior art search and patent drafting. Having a patent strategy
would allow small businesses to understand their priority in terms of patent
filing and assist them to plan ahead before leveraging on funding scheme,”
Kangon said. 

Developing a patent strategy: Steps and tips for businesses with tight budgets 

“The advice and strategy will depend on the business in question. For example,
the strategy for an AI company will be different from a company offering
services,” noted Eugene Yang, a patent attorney at Amica Law in Singapore. 

For cost-effective measures and tips, our interviewees recommend the
following:  

 * Consider patent strategy right at the stage of product development or from
   the commencement of business. According to Gandhi, this will give investors
   confidence, thus enhancing the likelihood of securing funding for startup
   ventures.                                

 * Choose carefully the right type of patent you want to be protected. Is it
   patents, designs and/or petty patents? 

 * Determine which types of inventions are worth protecting. Know whether the
   invention behind a product can be easily reverse-engineered. “If it can, then
   patent protection will be important to prevent competitors from easily
   copying the invention. If it cannot be easily reversed-engineered, then the
   invention may be better protected as a trade secret,” said Yang. 

 * Undertake patentability or prior art search to ensure the invention meets
   requirements on novelty, inventive step and industrial applicability. Do this
   before incurring expenses involved in securing patent rights. 

 * Perform due diligence searches such as “Freedom to Operate search” before
   launching new products. This will help identify potential infringement
   threats and help prevent expensive IP infringement suits. 

 * Assess the importance and potential value of inventions you intend to patent.
   “Key considerations include why the invention should obtain legal protection,
   whether it results from a unique process, or if it is expected to have future
   value,” said Alizia.  



“For example, does the inventor plan to manufacture, sell or license the
invention? If not, patent protection may not be necessary,” explained Yasinee
Wuttison, a patent specialist at ILCT in Bangkok. “By clarifying the purpose
behind seeking a patent, a business can save resources by avoiding unnecessary
patenting efforts.” Wuttison says that Thailand is seeing rapid growth in the
number of startups and small enterprises. 

To determine the invention’s potential commercial viability, perform a thorough
market analysis and competitive landscape assessment. “The business should have
a full understanding supported by data on the significance of the invention in
question,” said Kangon. “However, businesses must not just look at short-term
gains but should also consider long-term benefits.” 

 * Implement a targeted strategy. “Such a portfolio would need one or both
   defensive patents and offensive patents, in accordance with the business
   goals and the risks and opportunities the solution provided by the company
   presents,” said Gandhi.  

According to Gandhi, defensive patents serve as a shield to stop others from
obtaining a patent on the same subject matter. On the other hand, offensive
patents act as a sword against others, serving multiple objectives, such as
keeping competitors off the market, generating revenue, demonstrating company
innovation and serving marketing purposes. Such a targeted patent strategy will
prove to be effective and at the same time cost-efficient. 

 * When filing patent applications, plan the disclosure and claims meticulously.
   “The patent disclosures could be such that the businesses are able to file
   further applications – divisional applications – on the basis of a given
   patent application for a certain product, apparatus or process at a later
   stage. This strategy will not only delay the costs of seeking IP protection
   but will also be effective if the applicant is unsure of the commercial
   viability of certain innovations,” explained Gandhi. 

As for claims, tailor them to be as broad as necessary to cover innovation, but
make sure the claims are specific enough to reduce or minimize costs for patent
prosecution and litigation.  

 * When deciding when to file a patent application, consider these factors: the
   stage of development, market readiness and the risk of competitors entering
   the market. “Ideally, legal protection for patents should be sought as early
   as possible to secure rights and prevent others from claiming similar
   inventions,” said Wuttison. 

 * Be selective about which countries you would patent your invention in. “The
   costs of obtaining a patent and the value of the patent are not directly
   correlated,” revealed Yang. Furthermore, acquiring patent protection can be
   expensive if you are filing in multiple countries.  

“Prioritize patent filings based on factors such as manufacturing locations,
major competitors, key markets and export opportunities. Filing in countries
where competitors are based or where manufacturing is cost-effective can help
protect investments and provide strategic advantages,” said Wuttison.  

According to Kangon, data collection and analysis once again come into play when
determining key markets, especially if you are contemplating global patent
protection.  

When you’ve identified the countries where you intend to file a patent
application, understand the patent systems in those jurisdictions. 

 * Take advantage of accelerated patent examination programs. “Most patent
   offices offer a way to accelerate patent examination, and this can be a
   cost-effective way for an applicant with a tight budget to get a better idea
   of the patentability of their invention in one patent office,” noted Yang.
   “The positive examination result can subsequently be used to accelerate
   examination in other countries.” 

 * As the cost of obtaining a patent is often spread over several years, do not
   be afraid to abandon an application if there is insufficient budget later or
   if the commercial interests of the company change. Therefore, consider a
   routine review of your patent portfolio to identify patents which have lost
   value. 

 * Take advantage of fee rebates provided by various patent offices to small
   businesses.  

 * Monitor industry trends continuously. By doing this, you will discover new
   opportunities for licensing and strategic partnerships. 

 * Seek the services of an intellectual property or patent professional.  



“IP and patents cover an intersection of the commercial, technical and legal
aspects of a product or service. Hence, it is important to seek professional
advice from an IP or patent professional who understands all three aspects and
can advise the business,” said Yang. 

Plus, tapping the services of an IP professional or patent agent may be more
financially practical in the long run. Kangon explained: “It may be tempting for
startups to draft patent applications themselves or to seek low-cost patent
service providers, but businesses must be mindful that patent is a highly
specialized area of law, and expertise is needed to ensure that the patent is
well-drafted both in terms of technical requirements and legal rules.” This will
help avoid unnecessary objections during the prosecution process.  

“The worst case scenario would be expending a huge amount of money to obtain a
patent grant,” Kangon added, “but it ends up worthless due to subpar patent
drafting.” 

Having limited financial means shouldn’t stop small enterprises from crafting
their own patent strategies. However, Kangon advised startups and small
businesses to be disciplined and avoid being too ambitious when doing so. 



--------------------------------------------------------------------------------

0 Shares Share Tweet LinkedIn Email
Tags: Patent IP Strategy Budget Startup SMEs


RELATED ARTICLES


BUILD AND DEFEND: ALL-AROUND STRATEGIES FOR CORPORATIONS TO MANAGE TRADE SECRETS
AND ASSERT RIGHTS OF TRADE SECRETS IN CHINA

26 October 2024


CHINA’S IP EXPERTS 2024

30 October 2024


IPO-PAKISTAN HOLDS CONSULTATIVE SESSIONS FOR NATIONAL IP STRATEGY WITH WIPO

23 December 2024


PROTECTING CONSUMER INTERESTS IN TRADEMARK EXAMINATIONS

29 October 2024


 * 
 * 


ABOUT US

Business Intelligence from the Top

Asia IP is the region’s leading source for analysis of the IP issues facing
companies in Asia; a vital source of intelligence for IP-owning companies, and
law firms that want to keep ahead of the key issues. Focusing on the issues
behind the headlines, it provides unparalleled access to the challenges and
solutions companies face when trying to protect their intellectual assets.

Asia IP is published by the Apex Asia Media Group, a leading independent
publisher based in Hong Kong.

 * Home
 * Jurisdictions
 * IP Experts
 * Law Firms
 * Events
 * Media Information
 * Terms and Condition
 * Privacy Policy
 * Contact Us


SECTORS

Patents Trademarks Industrial Designs Copyright Licensing & Franchising Media
Enforcement
Dispute Resolution IP Management Pharma & Biotech Litigation Prosecution IT &
Telecoms

Copyright © 2024 Asia IP. All rights reserved.
Halcyon Web Design

We recommend to enable your javascript upon using this website to see full
functionality.
Please click the link on how to enable it: https://www.enable-javascript.com/

Please wait while the page is loading...