What Makes A Great Patent?
The Art and Science of Building a Valuable Patent Portfolio
A patent is more than just a legal document—it’s a strategic tool that can provide a business with a competitive edge, secure market position, and build long-term value. But not all patents are created equal. The strength, scope, and application of a patent determine its worth, both in protecting innovation and in creating opportunities for market advantage.
Here, we’ll explore what makes a great patent, common pitfalls to avoid, and how to build an intellectual property (IP) estate that creates sustainable value.
The Core of a Patent: A Unique System and Method
At its heart, a patent protects a system and method for accomplishing a specific task or application. For a patent to hold water, the system and method must be novel and non-obvious—that is, the approach to solving the problem must be unique and not something an expert in the field could easily deduce. Simply applying existing technologies to a new use case doesn’t qualify; the innovation must lie in how the task is accomplished.
What Can You Patent?
Technological Innovations: You patent a method or system that offers a novel, optimized solution to a problem.
Business Applications: While less common, certain business methodologies can be patented, such as Amazon’s famous One-Click ordering.
Sustainable Advantages: The most valuable patents don’t just describe an invention—they create a sustainable market moat, allowing the holder to prevent others from using the same approach.
Patents that lack uniqueness or are overly narrow may fail to provide real protection, rendering them little more than an expensive piece of paper.
What Makes a Great Patent?
A great patent is defined by its ability to secure broad and deep protection:
Broad: Covering Many Applications
A well-crafted patent is written to apply to multiple applications, spanning different industries or use cases. This ensures that your innovation has value beyond its initial purpose and can serve as a foundation for further growth or licensing opportunities.
Deep: Covering Many Implementations
Depth ensures that the patent encompasses various ways to implement the idea. Whether through different materials, algorithms, or methods, a deep patent reduces the risk of workarounds by competitors.
Geographic Coverage
Global markets matter. A patent with broad geographic coverage ensures that your innovation is protected wherever you plan to operate or license. Limiting your patent to one country could leave critical markets unprotected and vulnerable.
Secondary and Enabling Technologies
A strong IP portfolio expands on a foundational patent to cover secondary innovations and enabling technologies. These additional patents make it harder for competitors to bypass the original invention, effectively building a higher fence and a deeper moat.
Evaluating a Patent: What to Look For
When reviewing a patent, it’s crucial to assess its actual value and relevance to the broader industry landscape:
Start with Claim One
Claim One defines the essence of the patent. It outlines the core innovation and determines the strength and enforceability of the patent.
Subsequent claims are typically qualifiers or restatements that expand on or refine Claim One.
Identify What You Own
Focus on what the patent explicitly grants ownership over. Don’t rely on the inventor’s interpretation—what matters is what the patent itself legally protects.
Identify What You Don’t Own
Determine gaps in the patent’s coverage and identify who (if anyone) holds those rights. This helps you understand the competitive landscape and potential risks.
Place the Patent in Context
How does this patent fit into the broader field? Is it groundbreaking, or is it the 43rd iteration of solving the same problem? The more disruptive, novel, and practical the patent, the greater its value.
Common Pitfalls to Avoid
While patents can be powerful assets, they’re not a guaranteed ticket to success. Here are some common pitfalls to watch out for:
Assuming a Patent Adds Automatic Value
A patent by itself doesn’t necessarily make a company more valuable. Investors and acquirers care about the market relevance and enforceability of your patents. Sometimes, a trade secret is more cost-effective and strategically advantageous.
Owning Patents, Not Products
Having a patent doesn’t guarantee success. Strategic spending should focus on building products and solutions that leverage the patent, not on collecting patents for their own sake.
Assuming Patents Prevent Infringement
A patent doesn’t automatically protect you from infringement. Enforcement is your responsibility, and litigation is costly. Be prepared to defend your IP in court if necessary.
Underestimating the Value of Expertise
Not all patent attorneys are created equal. A seasoned patent attorney specializes in crafting claims that maximize protection and avoid unnecessary vulnerabilities. Hiring the right expert is crucial to building a robust IP portfolio.
Building a Powerful IP Estate
A valuable patent portfolio—or IP estate—does more than just protect an invention. It strategically expands and elaborates on a base patent, creating a layered defense that secures market position and generates licensing opportunities. Here’s how to build one:
Start Broad and Deep: Cover multiple applications and implementation methods.
Expand Gradually: Add secondary patents that protect enabling technologies and complementary innovations.
Think Globally: Ensure geographic coverage matches your business strategy.
Monitor Competitors: Stay aware of emerging patents and work to differentiate and disrupt.
Conclusion
A patent is more than an invention on paper—it’s a strategic asset that, when used effectively, can protect innovation, secure competitive advantage, and create long-term value. However, not all patents are equal, and crafting a great patent requires a combination of technical insight, legal expertise, and strategic foresight.
By focusing on breadth, depth, and context, entrepreneurs and businesses can create a patent portfolio that not only safeguards their innovations but also builds a lasting legacy in their industry.