Six tips for smartly managing your patent portfolio

Renewal fees

A patent offers a maximum of twenty years of protection. Shorter periods are also possible and can sometimes be smarter. This is because you have to pay an annual renewal fee for each patent in each country. This amount increases as time passes. In the twentieth year, it can cost as much as 2,000 to 3,000 euros per country per year. Suppose you have a portfolio with five patents in four countries, then you will have to pay (much) more in renewal fees each year than what you would have to pay for a new patent application. It is therefore a good idea to take a strategic look at your patent portfolio. The tips below will help you do this.

Tip 1: Analyse your portfolio

Start with an overview of all your patents. In which countries do you have patents, what is the scope of protection of the patents and for which of your products? This will give you insight into whether you have patents in countries where you are currently no longer very active. Or whether you have patents on a technology that is now outdated and of less interest to the market. A clear overview is the basis for all further decisions.

Tip 2: Focus on what affects your competition

Conduct market research and focus on what is important to your competition. Those innovations that they would also like to make or sell. They may not necessarily be what you, as an entrepreneur, are most proud of in terms of innovation and technology. However, the main purpose of a patent is to keep your competitors out of the market. So keep that in mind when reviewing your portfolio.

Tip 3: Regularly check your patents against your commercial goals

Periodically compare your patents with your current and future commercial goals. Is the technology still up to date? Are you still active in those markets? Have your competitors found other solutions in the meantime? By looking at your portfolio in this way, you may find that certain patents are obsolete and can be allowed to lapse. This will free up budget for new innovations. Sometimes you have to prune in order to flourish.

Tip 4: Involve all disciplines in the decision

Keep the patent or not? Techies may be inclined to want to keep everything they have worked so hard on. The finance department will mainly look at costs. Marketing will be happy with the “patented” label.  By taking all these perspectives into account, you can make a decision that fits the company's goals.

Tip 5: Avoid the “we've already invested so much” trap

Innovation takes time, money and knowledge, as does the subsequent patent application. “It has already cost so much” is a common reason for continuing to renew the patent. This can be expensive if it causes you to miss out on new opportunities. You will not get back the money you have already spent. However, don't forget that, although difficult to measure, the patent application has acted as a deterrent in the market all this time.

Tip 6: Consider licensing

If you are no longer as active in certain markets or countries as you were in the early stages then you should consider licensing to local parties there. That way, you will still earn money and renewing the patent will more than pay for itself.

It all comes down to making strategic choices

Smart portfolio management is ultimately all about making strategic choices. Where do you invest your energy, time and money? By regularly taking a critical look at your patent portfolio, you can get the most out of it and strengthen your competitive position where it counts.

If you would like some advice on portfolio management or would you like to discuss which strategy best suits your organisation and business objectives please feel free to contact me.