Patents

I have been granted a patent by the United States Patent Office. I am seeking funds to help with the manufacturing in China.

Congratulations on your patent.

By obtaining a patent, you have obtained Intellectual Property (IP) protection for your product. In order for a competitor to directly compete with your device, they must either pay you a licensing fee for the use of your patented design or create an alternative design that accomplishes the same purpose.

In a broad sense, you have erected a barrier to entry for competitors. Barriers to entry can be created by a dominant brand position, capital resources, unique product capabilities, proprietary sales channels, vendor and customer relationships, etc. All of those barriers to entry are market based.

A patent is a legal barrier to entry in a specific market. In your case, you have a U.S. patent, so your design is protected in the U.S. market. A country specific patent protects products in that country. An International Patent protects a design in all countries who are party to the international patent agreement.

The burden of any legal barrier to entry such as a patent or copyright is that it is incumbent on you, the patent holder, to enforce your rights. That means you must police the marketplace to discover infringing products and file (and pay for) legal action to stop the infringing product’s sales.

The upside of a patent is that it provides legal and enforceable IP protection. The downside is that you need the required capital and legal resources to enforce your patent.

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