Innovation drives progress, and in today’s highly competitive business landscape, it is more important than ever to protect your inventive ideas. Patents are the foundation of intellectual property protection and a driver of business growth. Let’s take a look at what patents are, how they work and in what myriad ways they can transform your business in 2024.
Essentially, a patent is a legal document granted by a government agency that gives the patent holder exclusive rights to an invention for a specified period of time. These inventions can range from pioneering technologies to new processes, designs or even plant varieties. Patents serve as a shield against competitors and give the inventor the exclusive right to produce, use or sell the patented invention.
Obtaining a patent involves a rigorous application process, including detailed descriptions and often lengthy examinations to ensure that the invention meets the patentability criteria. Once a patent is granted, it gives the inventor the exclusive right to commercially exploit the invention, preventing others from copying or profiting from their creation without permission. Patents usually have a lifespan of 20 years from the filing date, during which time the inventor can enjoy exclusive rights to his invention.
Patents are not just legal documents; they are strategic assets that can boost your business in several ways:
In addition to protecting intellectual property, they offer significant tax benefits that can improve your bottom line.
The innovation income deduction is an example of a tax benefit for companies with patented innovations, reducing tax liabilities and increasing profitability. This measure is an additional incentive for companies investing in innovation through intellectual property. Income from innovation can be deducted up to 85%. As this measure applies not only to income from patents, but also to income from IT developments in an R&D context, it contributes to the development of the knowledge economy.
A strong IP culture encourages investment in research and development (R&D) by providing assurance that the resulting innovations are protected and potentially profitable
In an era characterised by rapid technological progress and relentless competition, patents have never been more valuable. They serve as beacons of innovation, driving economic growth, fostering creativity and propelling businesses forward. Whether you are a startup looking to secure funding, an established company looking to secure your market position, or an entrepreneur looking to break through industries, patents offer diverse growth opportunities in 2024.
With FI Group as your trusted partner, you can navigate your way through the changing landscape of R&D funding and make the most of the incentives available.
