Patent monitoring - introduction
There are many misunderstandings about patents and the rights they confer. One of these misunderstandings is that you are protected from infringement when you have a patent. Infringement occurs when you use a similar (or the same) process or offer for sale a product that is already protected by a patent. Unfortunately, this is not always the case. Even if you have a patent yourself, infringement may occur. So this is already an important reason to keep an eye on your competitors. And not just patent monitoring of their portfolio, but also their sales activities, marketing, the products or services they sell, and their presence at symposia, conferences and trade fairs. After all, knowing your competitors is also knowing yourself.
Patent monitoring of the patent portfolio of our clients' competitors is something we do every day. We know the tricks to track the activities of your competitors. Unfortunately, the 18-month secrecy period does delay patent information somewhat. However, the good news is that this also applies to your own portfolio. So your competitors cannot see your latest activities either. This 18-month secrecy period applies to everyone, so this is a plain fact.
So anything before then is just public. At Custos IPC we can help you track this information and set alerts, whatever database you use. This way, you can see exactly what your competitors are doing and track every step of their developments. That is, if they make it public. We are not private detectives, so secrets stay secret! Also for us.
Because the beauty of secrets is, well, that they are secrets. If your competitors do not want to publish in exchange for a patent, you will never find out this way. Then you have to consult other sources. But as we said, that's not our speciality. But, if it is in the databases, we can find it. Unfortunately, that is not always as easy as it seems. We have often seen competitors choose to submit under a different name so that they are not found. For some companies, this is just a game. So you have to know the rules, play by the rules and find the gaps to outsmart the competition.
In our modern competitive society, patent monitoring of competitors' intellectual property (IP) can be the deciding factor. Research has shown that companies that make an effort to protect their IP are more successful than those that do not. Whether this is because of their smarter overall strategy, or simply because their attention to IP is of a good standard, is not always clear. But chances are good that these companies consider the whole picture, have a clear overall strategy and goal ánd adjust their IP strategy accordingly. So that it fits perfectly, like a glove. As it should!
Clearly, the IP strategy should be part of the overall business strategy, just like the marketing and sales strategy. It has to fit with what the company is doing. It is never one piece of the puzzle that determines success, it is always the whole package. And IE is clearly part of this puzzle. So it might be better to play the game and be prepared. By proactively scanning your competitors, you can gain that competitive advantage.
An essential step in effectively managing a patent portfolio is to conduct regular evaluations. Most companies have a weekly, fortnightly or monthly evaluation, depending on the size of the portfolio and the technical area. This regular patent monitoring should serve several purposes. First, they are there to see what the competitive advantage is, but also to allow you to identify patents (or patent applications) that may be blocking your own developments. Furthermore, comparing your own portfolio with that of the competitor can strengthen your own strategy. In this way, you can also evaluate your own business strategy. These evaluations also serve to prevent infringement by knowing what is already protected. When you are aware of these developments, you can adjust your own IP strategy accordingly. This way, you can discover where potential problems will arise.
By reviewing their and your portfolio regularly, you can optimise how you spend your money, spot potential valuable developments and ensure that the patents also contribute to overall business success.
We will now take a closer look at monitoring competitors' patents.
Benefits of patent monitoring
Some of these benefits are listed below:
- Searching for possible infringement
When you sell a product or use a process in the factory that is covered in whole or in part by a patent (or patent application), you risk infringing existing rights. If you know whether your solution infringes someone else's, you can think about a possible licence before you become embroiled in an infringement case. This is always a stressful activity. It also allows you to organise possible alternatives. Because usually there are possibilities. And if you don't find any rights, you know that the risk of a costly battle in court is at least reduced.
The risk of not monitoring competitors is that the owner of a patent can not only force you to stop selling your products, but also seek damages for a possible loss of sales. This risk is particularly high for smaller companies that rely on a few innovative products and ideas to generate revenue. To avoid such a situation, it is wise to constantly monitor and analyse competitors' patents to make sure your organisation is aware of the potential risks. Litigation is a very stressful activity and if it is avoidable, life is a lot more pleasant! With proper preparation, the chances of success are greater.
- Searching for new opportunities
When you know your competitors' weaknesses, as well as their developments, it becomes easier to determine your own successful research direction, discover new opportunities and perhaps even find new technological areas. Instead of focusing on the usual paths, choosing a new technology area, if possible, is likely to benefit the company, add value and reinvigorate its portfolio, products and services.
By monitoring this, you can also learn more about competitors' weaknesses, which you can then exploit to secure a position in the technical area. And it can also help define a new area of investment.
- "White space" analysis
However densely packed a technical field may seem, there is always the possibility of discovering areas that are not yet covered, with some exceptions, of course. These white spaces (white areas) are those parts where there is still an opportunity to find new technological solutions. Discovering these areas through patent monitoring gives your company a competitive advantage.
In general, it is always in the company's interest to encourage the development of new products. Standing still in this world is the same as going backwards. Once white areas are identified, these specific areas of interest can, in some cases, be protected by intellectual property rights. By making critical strategic decisions combined with a good understanding of the competitive landscape, you can eliminate risks that are beneficial to the company.
- Opportunities to take action
By patent monitoring your competitors' portfolio, you can find potential actions against a patent or patent application. If, according to your information, a patent will be granted, but also think there is documentation and/or knowledge available that shows something completely different. Then the competitor's patent application may not meet the criteria for patentability.
It is then possible to file 'third party observations' in this situation to challenge the pending patent application. Or perhaps it is better to wait until after the grant to then file an opposition. Because at least then you will be a party to the proceedings. All these decisions involve many parameters, so it is useful to consult your patent attorney for advice. This is also important so as to gain a thorough understanding of the procedures in order to readjust the strategy if necessary.
- Searching for new potential competitors
The arrival of a new competitor in a field always causes some disruption to already existing businesses. When this happens, it is important to keep abreast of the activities of these competitors to keep your own business healthy. By doing so, the company is better prepared to deal strategically with potential threats. And it provides an opportunity to discover new potential partnerships that can be mutually beneficial.
- Analysis of markets and jurisdictions
As will be clear, technological developments are not limited to one country, jurisdiction or physical geography (market) in this world. Therefore, monitoring should focus on all jurisdictions or geographical areas where you do business, without forgetting the rest of the plans.
- Current investments and future trends
Clearly, patent protection is an expensive process, both in terms of money and time. Therefore, companies should take it seriously and make the right investments. Obtaining patent rights can provide a competitive advantage that makes the investment worthwhile.
Since patent applications are usually long-term investments, it may take several years for products to reach the market. Your competitors' developments may be determined by patent applications and as such reveal their innovations. By analysing the results, you can align your business strategy with market demand and hopefully stay ahead of the competition. It's almost like having a crystal ball. Keeping an eye on what a competitor is trying to protect gives you a good insight into their business strategy. It helps to better understand their direction and provides an opportunity to outsmart them.
Conclusion
To really benefit from patent monitoring, the available information should be updated regularly. It is best to do this regularly to keep up with the competition. So don't wait until your competitors are too far ahead and start monitoring their patent activities. This will help you stay ahead in innovation and not just a follower. Need help with patent monitoring? The experts from Custos IPC are happy to help! Check our contact page for the relevant contact details.
