The evolution of biotechnology could revolutionize patient care and result in significant profits. Because of this, it’s vital that all biotechnology innovations and ideas are protected.
The biotechnology field is one that is heavily dependent on research and development. The number of resources dedicated to development total about 40-50% of revenues. This is significantly more than other research-heavy industries such as chemicals (5%) or pharmaceuticals (13%).
Development Is Expensive
It’s significantly more expensive to develop new treatments, processes, and products from scratch than to “borrow” from competitors. By patenting innovations, a company can protect itself from competitors who seek to reduce R&D costs by building on already established competitor technology.
Having adequate patents protects a biotechnology business by reducing the risk of copied products entering the marketplace and taking sales volume.
Profit From IP Rights
Developing a product from idea to finished product is time-consuming and can be a lengthy process. Many biotechnology companies don’t engage in the complete process because of this. Instead, they license patented innovations.
You’ll tend to see smaller firms with fewer resources engaging in this type of investment and profit structure. Then larger firms are the ones that license and produce the product.
To make this business model a success, the smaller firm needs to convince the larger firms that the IP is well protected. This will minimize the risk of investment for the larger firm. Should a competitor infringe upon your patent, you can work with an experienced IP law firm to protect your patents.
Opportunity to Learn
Once a patent is approved, the information contained within it becomes public domain. This allows other firms to monitor and review patent filings. They can then track and learn what other biotech firms are doing.
This can help fuel motivation and inspiration for their own developments. One firm can take the ideas and innovations from a patent and change or build upon it. Then file a patent for their own innovation.
Having patent protection can also encourage further development by patent holders. By knowing that their products are protected, they can focus on future research.
It isn’t enough to keep tabs on your own patents. Firms also need to track what patents competitors are filing and gaining approval for. This will minimize the risk of a competitor roadblocking a new product development.
By knowing how another’s patent can affect your launch, you can take defensive action early. This will minimize the risk of a canceled product launch or infringement lawsuit.
Enjoy the Profitability
Most biotechnology patents are not at their most valuable when they’re patented. They gain value as time goes on and become most valuable towards the end of their patent period.
Throughout the protected patent period, the process or product has gone through several clinical trials and has consumer market exposure. They should also have regulatory approval.
There is also no competitor on the market. This all translates to significant profits for the patent holder or licensee. This profit can then get reinvested back into future research for more developments and research.
Patent and then Publish
One mistake that many firms make is to publish their findings or research before they patent. This is a huge mistake. Once an invention becomes public knowledge, it’s no longer patentable. Now a firm has lost all ownership and protection rights.
Only reveal inventions in a confidential setting. Otherwise, you risk significant impacts on the future profitability of your firm.
To make your biotechnology firm a success, work with experienced patent attorneys from the start of the research process. They can assist you in advising when research transforms from an abstract idea into an established invention or process.
Protect your biotechnology firm’s innovations by speaking with one of our experienced attorneys.