How to avoid the pitfalls of poor patent management

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Have you heard of Google's latest settlement of $1.67 billion in a patent lawsuit? It really brings into focus the high stakes of patent disputes. While this may be a small setback for a giant like Google, it's a loud wake-up call for any enterprise about the importance of effectively managing patent programs.

As the saying goes, “By failing to prepare, you are preparing to fail.” This maxim fits perfectly in the context of managing a patent program, where the focus is not only on creating protective legal shields, but also on strategically selecting which innovations to patent. Such decisions, closely tied to business goals, are crucial for major players like Google to avoid litigation and are even more critical for startups. For startups, a strong patent portfolio it could be the ticket to increase their market value and attract investors.

With this consideration in mind, let's look at how even mild mismanagement of patent programs can lead to significant setbacks.

Can failure to protect an innovation be life-threatening?

Imagine it's the middle of the night. Someone with a known heart condition is sleeping, relying on their smartwatch to alert them to any dangerous irregularities in their heartbeat – a feature they trust as a lifeline. But unbeknownst to them, that very feature has been quietly disabled – caught in the crossfire of a corporate patent war. Suddenly, it's not just about a clock not ticking or a screen freezing. It is a critical safety net that is pulled at the worst possible moment. This is not just a technological glitch; it is a big mistake in corporate ethics. Decisions like these can destroy consumer confidence and cast a long shadow over a company's commitment to protecting its customers when they need it most.

A case in point is lawsuit by Masimoa medical technology company, against Apple for using the patented blood oxygen monitoring feature in two new Apple watches. Initially, Apple was asked to withdraw the product from the market, but in response, they decided to disable the feature to continue sales. This decision, although seemingly strategic, could have serious implications. Could a consumer who purchased the product for the health monitoring features be injured or even killed due to the removal of the feature fit the bill?

In the unforgiving world of intellectual propertyeven titans of industry can occasionally get it wrong in determining which inventions should be secured by patents or licensing.

The consequences of mismanaging a patent program

For larger enterprises, a mismanagement patent program may lead to significant financial losses, weakening of market position and increased vulnerability to litigation. Meanwhile, for smaller enterprises, the stakes are even higher. They may not have the resources to recover from similar mistakes, which can lead to catastrophic consequences, including possible business closure.

Let's take a closer look at these dire consequences of mismanaging a patent program and how they can be avoided:

Missed market opportunities

A common pitfall in patent program management it's when your strategy fails to keep pace with your evolving business goals. As markets and technologies change rapidly, what is critical to your business today may not be as important tomorrow. This dynamic can lead you to accumulate patents that no longer support the direction in which your business is moving.

Such inconsistency can lead to inefficiencies and, more critically, lost market opportunities. What is essential here is that do some soul searching regularly, reassessing and realigning your patent portfolio with your business goals. This means pruning where necessary and expanding where opportunities are seen, ensuring that your intellectual property supports your long-term business objectives.

Wasted money on bad patents

Let's face it: It's challenging to predict which patents will add value to your business without understanding them market potentialwhich may be impossible at the time of invention. Many enterprises choose a “shotgun approach”, filing a wide range of patents and hoping that some will eventually pay.

This strategy is risky – “bad patents” can consume significant resources in filing and maintenance fees without providing any return on investment, cluttering your portfolio with invalid IP.

To avoid such issues, my approach with clients involves focusing on innovations with high commercial potential or protecting the most important products of your enterprise. I identify this by analyzing competitor patent portfolios, identifying market gaps for competitive advantage and moving away from saturated areas. Regular portfolio reviews and targeted pruning help weed out underperforming patents, maintaining a lean and effective patent portfolio.

This strategy is essential not only for established businesses but also for startups. Research shows that startups with valid patents are 10 times more likely to secure fundinghighlighting the significant advantages of strategic patent filings.

Compromised protective value of patents

For many large enterprises, the goal of amassing a strong patent portfolio is to use it defensively—to deter potential lawsuits from competitors. I've seen companies that often believe, “If we get sued, we can counter with our patents.” And to do this, they build huge patent portfolios by patenting anything and everything.

But what if your wallet isn't strong enough? Lack of a strong defensive shield can make you vulnerable to aggression legal challenges from strong competitors in the market, which can be costly and disruptive to your business operations.

To mitigate this, the strategy should focus on quality over quantity. It's not just about having a lot of patents, it's about ensuring that each patent is strong, applicable and covers key technologies relevant to your products or the industry in general. This requires a strategic assessment of your technology needs and the patent landscapes of your competitors. Regularly evaluating the strength and scope of your patents helps ensure that your portfolio can effectively serve its protective purpose.

Moreover, engaging in proactive IP audits and looking for opportunities to strengthen your portfolio through acquisitions or internal innovation can further strengthen your defensive strategy. These studies can identify patents that are no longer relevant to the industry to avoid paying further maintenance fees.

Patents are more than legal protective measures; they anchor businesses and influence lives. The story of Massimo's patent battle illustrates the stakes – protecting not only the future of business, but also human well-being. It is important to ensure that your strategy is robust, combining business goals with meaningful innovation. The right approach isn't just defensive—it's a competitive advantage rooted in accountability. Turn your intellectual property into a cornerstone of success and influence.

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