Intellectual Property Protection: The Basics for Startups
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Intellectual Property Protection: The Basics for Startups
“The high overall number speaks to the enduring interest in safeguarding IP, while the 15% jump has to do with the fact that patent numbers actually dipped last year (down 3.5%) while the number that were filed and still in application form (not granted) was bigger than ever. If we can draw something from that, it might be that filers and the USPTO were both taking a little more time to file and process, not a reduction in the use of patents altogether.” (Tech Crunch)
Patents continue to be a way to protect your product from copycats and counterfeiters. To help you get acquainted with patents and the patent process, below are a few basics about intellectual property protection.
Patent Basics
A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office (USPTO). U.S. patent grants are effective only within the United States, U.S. territories, and U.S. possessions. There are three types of patents: utility, design and plant patents.
“A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office. Generally, the term of a new patent is 20 years from the date on which the application for the patent was filed in the United States or, in special cases, from the date an earlier related application was filed, subject to the payment of maintenance fees.” (USPTO)
Design Patents
Design patents are often overlooked and underutilized compared to the more common utility patents. “Five percent of all patent applications (more than 30,000 per year) are design patents.” (Upcounsel) Design patents focus on the exterior design, features and overall aesthetics of the product. Utility patents focus on the functionality and features of your invention.
Design patents extend to what is exactly shown in the line drawings, nothing more. “Some products might need multiple design patents. Each would cover a specific physical feature of the proposed product. Cars, for instance, require many design patents.” (Upcounsel) Having high-quality professional line drawings by a CAD designer is extremely advantageous. With a design patent, you are able to use the coveted phrases, patent pending and patent issued on all marketing material, and have confidence that your invention is protected for the next fourteen years. Also. when it comes to cost, design patents are considerably cheaper to file than utility patents.
Utility Patents
Utility patents focus solely on the inner workings of your invention, its unique functions and overall usefulness. “While a utility patent is harder to get, it offers better coverage. The utility patent has stronger intellectual property protections built into the patent system.” (Upcounsel) An invention is deemed useful if it provides an identifiable benefit and is capable of use. People often refer to utility patents as “patents for invention”. According to the United States Patent and Trademark Office, ninety-percent of the patent documents issued by the USPTO in recent years have been utility patents. With a utility patent your invention will be protected for the next twenty years.
Often times, proper patent protection can mean the difference between success and failure for a hardware startup.
Our team works closely with the Hawaii State Bar Association and understands the importance of patent protection for startups. If you have a question related to patent protection, please send us an email at info@3d-innovations.com.
Additional Intellectual Property Articles for Startups
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Design Patents and Utility Patents for Startups
Patent Basics
A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office (USPTO). U.S. patent grants are effective only within the United States, U.S. territories, and U.S. possessions. There are three types of patents: utility, design and plant patents.
Conducting a Patent Search
Once you have decided that you are interested in patenting your product, the next step is to conduct a patent search. A proper patent search will tell you if your invention, or its likeness, has been patented before or if your invention is indeed one-of-a-kind. There is nothing more time consuming, financially draining and demoralizing than filing for a patent, only to find that someone else already holds the patent to your invention.
The USPTO makes it possible to conduct a preliminary patent search on your own; however, it is highly recommended that you consult with a licensed patent search firm to assist with the bulk of the research. These firms have vast experience researching and are extremely knowledgeable in the classification systems.
Exploring Design Patents and Utility Patents
Design patents are often overlooked and underutilized compared to the more common utility patents. “Five percent of all patent applications (more than 30,000 per year) are design patents.” (Upcounsel) Design patents focus on the exterior design, features and overall aesthetics of the product. Utility patents focus on the functionality and features of your invention.
Design patents extend to what is exactly shown in the line drawings, nothing more. “Some products might need multiple design patents. Each would cover a specific physical feature of the proposed product. Cars, for instance, require many design patents.” (Upcounsel) Having high-quality professional line drawings by a CAD designer is extremely advantageous. With a design patent, you are able to use the coveted phrases, patent pending and patent issued on all marketing material, and have confidence that your invention is protected for the next fourteen years. Also. when it comes to cost, design patents are considerably cheaper to file than utility patents.
Utility patents focus solely on the inner workings of your invention, its unique functions and overall usefulness. “While a utility patent is harder to get, it offers better coverage. The utility patent has stronger protections built into the patent system.” (Upcounsel) An invention is deemed useful if it provides an identifiable benefit and is capable of use. People often refer to utility patents as “patents for invention”. According to the United States Patent and Trademark Office, ninety-percent of the patent documents issued by the USPTO in recent years have been utility patents. With a utility patent your invention will be protected for the next twenty years.
A design patent coupled with a utility patent provides overlapping protection for both the inner workings and exterior design of your product, and is a powerful tool in your IP arsenal.
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Innovation and Patent Protection for Startups
“A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office. Generally, the term of a new patent is 20 years from the date on which the application for the patent was filed in the United States or, in special cases, from the date an earlier related application was filed, subject to the payment of maintenance fees.”
“The right conferred by the patent grant is, in the language of the statute and of the grant itself, “the right to exclude others from making, using, offering for sale, or selling” the invention in the United States or ‘importing’ the invention into the United States. What is granted is not the right to make, use, offer for sale, sell or import, but the right to exclude others from making, using, offering for sale, selling or importing the invention.”
Make: Magazine recently published an article, “Patent Pandas: How One Maker Is Turning Her Horrible Experience Into a Force for Good”. It is a real and very telling story of how a person, actually a crowdfunding backer, stole an idea from a crowdfunding website and later tried to sell the invalid patent back to the original inventor. Unfortunately, stealing and patenting ideas that are not your own has become big business.
Patent law is complicated, and it is always best to consult with an attorney. However, we have compiled a list of resources below to get you started as you begin looking into the process of patent protection.
Crowdfunding Backer Patented My Project (Patent Panda)
General Information Concerning Patents (USPTO)
Navigating IP on the Path to Commercialization
IP Watchdog
How to Prepare for Your First Patent Attorney Meeting
Our team works closely with the Hawaii State Bar Association and understands the importance of patent protection for startups. If you have a question related to patent protection, we are happy to help. Please send us an email with your questions, info@3d-innovations.com.
Additional Intellectual Property Articles from 3D Innovations
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New Partnership with the Hawaii State Bar Association
3D Innovations (New Member Benefit)
Have a new product that you want to develop? Let 3D Innovations help you develop your new idea. 3D Innovations provides Product Development Our suite of services includes product design/engineering, prototyping, 3D Printing, additive manufacturing, supply chain management, packaging design, and production manufacturing sourcing. We provide 3D Printing and Rapid Prototyping services to quickly validate designs and make improvements for production manufacturing. Experience the benefits of 3D Design and see how 3D Innovations can develop innovative solutions to engineer, design, and manufacture your product.
Members will receive a 15% discount when they present their bar card. Click here for more information.
View other business partners and service providers on the Hawaii State Bar Association website.
Have questions about our new partnership with HSBA? Send us an email at info@3d-innovations.com
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Intellectual Property Strategies for Hardware Startups
Patents are a way to not only protect an idea, but to also minimize competition and act as a defense mechanism against infringement claims from others. Having a strong intellectual property strategy or having the patent process started, is a great way to attract or solidify partnerships and funding.
Below are four considerations for your startup’s intellectual property strategy.
File Early-On
Patent rules are strict and adhere to a tight timeline, so it is best to file for patent protection early-on in the development cycle. A provisional patent application is a good “first step” for hardware startups. A provisional application provides the means to establish an early effective filing date in a later filed nonprovisional patent application. It also allows the term “Patent Pending” to be applied in connection with the description of the invention.
It is important to note that a “provisional application for patent has a pendency lasting 12 months from the date the provisional application is filed. The 12-month pendency period cannot be extended. Therefore, an applicant who files a provisional application must file a corresponding nonprovisional application for patent (nonprovisional application) during the 12-month pendency period of the provisional application in order to benefit from the earlier filing of the provisional application (United States Patent and Trademark Office -USPTO).” Once you file a provisional application the countdown clock starts ticking and your next move must be decided within the 12-month period.
In this early period, it is also best to keep quiet about your invention. You want to avoid publicizing your invention. This does not mean that you cannot meet with potential partners or product development firms, but instead that you don’t want to share your idea online or start a crowdfunding campaign just yet.
File as the Invention Evolves
Many times the invention that you first envisioned, completely transforms during the product development process. This means that your initial patent or patent application may not cover new features that have been added on. This will leave your final product under-protected or not protected at all.
If the product is evolving quickly, consider filing a provisional patent application or a series of provisional patent applications within a year before filing a utility patent application.
Consider a Design Patent
While utility patents make up 90% of patents issued, design patents have been steadily on the rise because inventors are realizing that the exterior design and overall aesthetics of the invention can easily be replicated as well. Protecting both the design and functionality of an invention is necessary for long-term success.
According to the United States Patent and Trademark Office (USPTO), “design patents may be granted to anyone who invents a new, original, and ornamental design for an article of manufacture”. In short, this means that design patents cover exactly what is shown in the drawings, nothing more.
Like a utility patent, a design patent also lets you use the phrases patent pending and patent issued on all business-related material. Once you have been granted a design patent, you are then able to secure rights for the next fourteen years. Another important thing to keep in mind is that design patents are relatively cheap to file and maintain, as compared to a utility patent.
A design patent, coupled with a utility patent, offers a range of IP protection on both the inner workings and exterior design of your product.
Consider Other Brand Protections
Patent protection is only one part of your IP strategy. A registered trademark will help protect your brand as well. A trademark is a word, phrase, symbol or design that identifies and distinguishes the source of the goods of one party from another—think along the lines of logo and tagline. A recognizable trademark can be extremely valuable for distinguishing your business from the competition.
Depending on the exact nature of your startup, a licensing agreement, copyright and/or trade secret protection could also be considered during your intellectual property planning and overall strategy. Speaking to a Patent Attorney early-on will let you discuss your options, weigh the benefits and build a custom strategy for your startup.
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
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FAQ: The Basics of Intellectual Property and Manufacturing
On the IP side, a decision must be made about what type of patent (design patent or utility patent) makes sense for the invention and budget. On the manufacturing side, everything about the design, even the smallest details, must be accounted for when selecting materials and where to manufacture the product. Having insight and answers early-on in the startup journey helps entrepreneurs understand the full spectrum of what it takes to bring a product to market.
Below we delve into the top three questions we frequently receive related to IP and manufacturing.
Do I need a patent to start my design?
You don’t necessarily need a patent to start the design phase of product development. Often, the design phase is done in parallel with the patent creation process and filing.
Drawings from the design are included as part of the patent application and can be used as attachments to your application. It is recommended to at least file for a Provisional Patent prior to disclosing any information about the product such as designs, prototypes, and specifications to outside parties. You will also want to have your patent in the Patent Pending stage before moving forward with any manufacturing or marketing initiatives.
How will you keep my intellectual property confidential?
Ideas are a “dime a dozen”, but the real intellectual property (IP) is what gets developed, not the idea itself. Developing the functional aspect of the idea is the difficult part. All information is kept confidential and disclosed strictly on a need-to-know basis with the client’s approval.
What process will be used for production manufacturing?
Before entering the production manufacturing phase, several things will be conducted to determine the most cost effective and price friendly option. Material, surface finish, quantity, and post processing are factors in deciding the appropriate process for production manufacturing.
*This is the second piece in a two-part series, view part one here, FAQ: The Basics of Product Development.
We are happy to answer any additional product development questions you have, please email us at info@3d-innovations.com
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
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The Benefits of a Provisional Patent Application for Your Hardware Startup
It is important to note that a “provisional application for patent has a pendency lasting 12 months from the date the provisional application is filed. The 12-month pendency period cannot be extended. Therefore, an applicant who files a provisional application must file a corresponding nonprovisional application for patent (nonprovisional application) during the 12-month pendency period of the provisional application in order to benefit from the earlier filing of the provisional application.” Once you file a provisional application the countdown clock starts ticking and your next move must be decided within the 12 month period.
As with any patent application, your application needs to be as complete as possible to be truly beneficial—this means that you must describe and document all variations, alternatives and permutations to your invention in detail. The best way of obtaining this critical information is by turning your idea into a functional prototype. A prototype will allow you to hold the invention in your hands, and make any necessary modifications to your final design. 3D CAD renderings and simulations will also help define the limits of your invention.
Below we discuss the two main benefits of a provisional patent application for your hardware startup:
Your Invention is Legally Protected
In the early-stage of product development inventors understand the importance of confidentiality and protecting their idea. While a confidentiality agreement will suffice when talking about your idea with engineering firms and licensing firms, investors can be slightly weary of signing one—and this can make things very difficult if you are seeking outside funding.
“Investors get proposals from many people and if they sign a confidentiality agreement with you, and another who has a similar idea, that could lead to liability on their part where there was no liability present absent them signing an agreement. (IP Watchdog)” Thus, if you want to show someone your invention without any legal protection, the pros and cons must be heavily weighed. If you have a provisional patent application pending though, you have defined your invention and it has a legal filing date, which makes discussing the invention with outside parties much less risky.
The “Patent Pending” Terms Can Be Used
“Patent Pending” is a term that is not only legally beneficial, but it gives your invention and your startup credibility. You are creating “perceived ownership” while defining the details of your idea. An idea that has been turned into a tangible invention (i.e. with a functional prototype) is more valuable when discussing potential licensing agreements and funding with outside investors.
The earlier you file a provisional patent application, the quicker you limit your exposure and prevent others from cutting off your rights (i.e. by filing for a similar invention before you do). The “Patent Pending” term shows that you have established priority for the idea/invention.
Developing a product should be viewed as a marathon and not a sprint. Taking your time early in the product development process to protect your invention will be immensely beneficial for your hardware startup later on.
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
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How to Prepare for Your First Patent Attorney Meeting
Below are a few tips on how to prepare for your initial meeting with a patent attorney. Keep in mind that the first meeting can be free—being adequately prepared means that you will be able to glean as much knowledge as possible from this meeting.
Prepare a brief description of your invention.
The key to this description is to be concise. What does your invention do? What are the main functionalities of your invention? This written summary if often called an “invention disclosure statement”, however it doesn’t need to be formal and can be written in any form. Keep it to a page or less in length, and even a paragraph or two will be sufficient.
Write your description so that someone unfamiliar with the product can get an idea of what it does and the technology behind it. Patent attorneys deal with a variety of technology, but don’t always have an extensive technical background, so you want to be able to bring them up to speed quickly on your specific invention.
Bring drawings or a prototype.
Seeing your invention is a quick and efficient way of describing your product to the patent attorney. A prototype allows the patent attorney to assess the product and understand the exact intricacies behind your invention. Depending on the exact nature of your product, a functional prototype might be just what you need for the meeting. However, line drawings or sketches of your product will also work for your initial meeting. These drawings don’t have to be formal, but they should be thorough.
Conduct your own patent search.
This can sound slightly counter-intuitive since you are meeting with a patent attorney, however you should to conduct your own patent search beforehand. Search patent databases such as www.google.com/patents or www.uspto.gov using keywords from your “invention disclosure statement”.
Print the patent search results.
From your patent research, print and bring the patents that are most similar to your idea. You can either print out the patent references or compose a list of them, so that they can be easily retrieved. This will provide a research starting point for the attorney as they conduct a more formal patent search.
We also suggest organizing the above information into a single file folder and include a business card. This way the attorney will have all of your invention information and contact information in one place.
Adequate preparation for this meeting ensures that you will get the most out of your initial meeting and hopefully gain a better understanding as to whether this route makes the most sense for your invention and stage of business.
Have additional questions about patents, prototypes or line drawings? Please send us an e-mail, info@3d-innovations.com
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
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Hardware Startups: Can I Patent My Invention?
Have additional questions regarding the patent process? We highly recommend a visit to the USPTO website. We are also able to help answer any questions you may have, please e-mail them to info@3d-innovations.com
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
Startup Connector is a Manufacturing Accelerator helping companies commercialize—turning ideas into products.
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Intellectual Property: Should You Consider A Licensing Business Model?
What is a licensing agreement?
With a licensing agreement, an inventor (the licensor) develops an invention and then protects that invention through a patent, copyright, trademark, or trade secret, and thus creates intellectual property (IP). The inventor—the owner of the intellectual property—then licenses the invention to a second party (the licensee) whose responsibility is to commercialize the invention. As compensation for allowing another party to use its intellectual property, the licensor will receive a royalty.
Licensing agreements are becoming more common than in the past and are open to more inventors. This has also increased the number of inventors approaching manufacturers and, thus, increased competition.
What are the benefits of a licensing agreement?
Below is a list of some of the main benefits of licensing your invention/IP.
How do I evaluate a potential licensee?
When evaluating a potential licensee, you should focus on its ability to effectively commercialize your invention/IP. Often times that means considering companies that have a proven track record of marketing and selling products based on inventions similar to yours. Depending on the invention, the best way to commercialize it could also be to license it to a startup, a manufacturer, or a bunch of companies in separate territories.
Suggestions for securing a licensing agreement:
Have additional questions about licensing agreements? We would be happy to help answer them, please e-mail info@3d-innovations.com
Articles Referenced:
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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
Startup Connector is a Manufacturing Accelerator helping companies commercialize—turning ideas into products.
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