A patent is an exclusive right granted to an invention. Generally speaking, a patent gives the patentee the right to decide how, or if, the invention can be used by others. In exchange for this right, the patent holder makes available to the public the technical information on the invention in the published patent document. A patent is an intellectual property (IP) right of a technical invention.
It allows you to prevent others from using your invention for commercial purposes for up to 20 years. You decide who has permission to produce, sell or import your invention in countries where you have a valid patent. You can also exchange your patent, for example, sell it or license the use of your invention, you can patent products (e.g. heated ski boots) and processes (for example, for example).
However, the invention must solve a problem in a new, non-obvious and technical way. In the example of ski boots, the problem of cold feet when skiing is solved by installing self-regulating heating elements in the boots. Patents are granted for new and useful inventions, and give you the right to prevent others from making, using or selling your invention. The concept of intellectual property relates to the fact that certain products of human intellect must enjoy the same protective rights that apply to physical property, which are called tangible assets.
However, the value of property tends to be reflected in the share price, as market participants are aware of the existence of intellectual property. Intellectual property is a broad categorical description for the set of intangible assets that are owned and legally protected by a company or individual against external use or implementation without consent. Just as your physical property is protected from theft and damage, your intellectual property is also protected. Intellectual property can represent a competitive advantage and, as a result, is heavily guarded and protected by the companies that own the property.
While it is an intangible asset, intellectual property can be much more valuable than the physical assets of a company. Certain rights, known as Intellectual Property Rights (IPR), are attached to intellectual property and cannot be infringed by those who are not authorized to use them. Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs and symbols, names and images used in commerce. Intellectual property can be used for a variety of reasons, such as branding and marketing, as well as to protect assets that offer a competitive advantage.
Budget the time and money you'll need to properly secure the rights to your creations and describe how you plan to protect your intellectual assets. Extracting value from intellectual property and preventing others from gaining value from it is an important responsibility for any company. Many forms of intellectual property cannot be listed on the balance sheet as assets, since there are no specific accounting principles for valuing each asset. Start by listing all your intellectual property assets, and then think about which assets need to be protected.