Prescription drugs patents make the pharmaceutical company the sole producer for a finite period of time.
Patent protection in the United States grants the first person to invent a new device or design a new product time and legal recourse to develop that product without the competition of other companies. This protection empowers inventors to continue to innovate and produce more complex pieces of equipment that can change the landscape of modern life, as an inventor with a patent in hand reaps the benefits of his work.
Exclusive Rights
Patent protection provides you with exclusive rights to your invention. This gives you the right to pursue damages from any organization or individual that sells or attempts to profit from your patented invention. This protection can give you the time to refine certain aspects of the patented material and as long as the patent is in effect no other business can attempt to produce a similar product or attempt to duplicate your invention through reverse engineering or another means.
Market Entry for Competitors
As part of protection granted through a patent you can stop competitors from entering the market with products that contain designs or aspects of your own invention. This gives a near-monopoly on the product, installing you as the sole beneficiary of all profits generated from the invention. Patent protection also enables you to license manufacture of the product to other businesses in exchange for royalty payments, which can be very lucrative for the inventor of a popular product.
Outside Investment
The exclusivity granted by patent protection enables a patent holder to attract investors seeking to create a marketing model and production plan for the invention. Investors can be confident in putting money into a project because these individuals know that no competition is going to take place on the patented product for a specified period of time, granting them enough time to see a return on the investment before competition enters the market.
An Inventor's CV
Patents are a matter of public record. An inventor is able to show investors or prospective companies seeking to employ him the number of inventions he has successfully developed, helping to establish proof that he knows what he's doing in the field. An inventor may secure additional funding or new employment on the strength of products he has patented in the past.
