Question

Explain the defensive patent strategies of a company?

21 Feb 2019
Answer :
Word Count : 1044

This strategy of Defensive Patenting is mainly practiced by those companies that have a strong presence in manufacturing a particular type of product. Those companies not only obtain patents similar to the main patent but also acquire patents that are somewhat closely related to the main patent. This ensures that the competitors' have a difficult time in making similar product without infringing the innovator's product. This also ensures their delayed entry into the market. Defensive patents can protect their holder in following ways:

the gamut of patents can be used as a defensive weapon against counterclaim;

a firm's negotiating position with respect to the competitors' can be strengthen, for example, as in cross-licensing;

used for defensive purposes when the competitor threatens the patentee in a related technological domain;

to restrict the entry of potential applicants in the technological domain;

to provide freedom of operation; or

to obstruct market access of competing products.

From a business outlook there are three reasons to seek patents:

Offensive Reasons: Patents are sought to strategically shield one's technology or markets. Patents are used offensively to build a portfolio that is directed towards all aspects of one's product. These patents are usually those that cover something that the inventor company plans to practice or is practicing. The patentee can use such patent to offensively sue for infringement or seek a cross-license.

Defensive Reasons: Here, Patents are registered purely for defensive purposes. They are the ones that cover something that a competitor may possibly practice or is already practicing. That is, such patents safeguard the business by providing ________ ________ _______ _______ _________ ______ ______ ______ _________ ______.
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