Understanding Utility Patents: A Guide to Building Your IP Portfolio

The Value of Patents

Patents are big business. Kodak sold its portfolio for $525 million. Nortel's portfolio went for $4.5 Billion. For startups and early-stage companies, patent portfolios heavily influence valuation.

What is a Utility Patent?

A utility patent protects new machines, processes, systems, and manufactured items. It grants owners the right to stop competitors from making, using, or selling the patented invention for 20 years from filing - essentially a limited monopoly that can be licensed to competitors.

First-to-File Strategy: Provisional Patents

In the U.S.'s first-to-file system, provisional patents offer a low-cost way to secure an early filing date. Key points:

• Preserves filing date for later non-provisional patent
• Not examined by USPTO
• Expires after one year
• Budget range: $4,700 - $5,000 (including attorney fees)

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The Patent Process

1. Due Diligence: Patent search and analysis
2. Application: Written disclosure with drawings
3. Prosecution: Negotiating with USPTO examiner
4. Allowance/Grant: Receiving patent certificate
5. Post-Grant: Enforcement and maintenance

Investment Overview

• Nonprovisional patent (normal complexity): ~$10,000 median attorney fees
• USPTO filing fees: $1,820 (standard) / $910 (small) / $455 (micro-entity)
• Maintenance fees due at years 3.5, 7.5, and 11.5

Next Steps

Consider applying for patent protection if your invention:

• Solves a new problem
• Solves a known problem in a new way

Ready to protect your invention? Book a complementary intellectual property assessment: https://calendly.com/tinchlaw/cc.

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