In a recent interview with Entrepreneur Magazine, Keegan Caldwell, Global Managing Partner of Caldwell, shared key insights into what makes patents truly valuable — and it’s not necessarily what you might think.
The Real Value of Patents
Keegan challenges the common misconception that patents are only for groundbreaking innovations. In fact, some of the most commercially impactful patents cover ideas that seem mundane but have broad applicability. A prime example is Amazon’s “1-Click” button, which was a simple concept that revolutionized online shopping.
The Power of Intangibles
The article highlights how patents contribute significantly to a company’s value, especially in today’s economy where “intangibles” like technology make up the majority of assets. Companies with patents tend to receive higher valuations and achieve more profitable exits compared to those without. This underscores the importance of having a strong patent portfolio, especially for companies in highly competitive markets.
Why Companies Hesitate
Despite the clear benefits, many companies are reluctant to pursue patents. This hesitation often stems from a perception problem: engineers and innovators might dismiss their ideas as unpatentable simply because they seem too ordinary. However, Keegan stresses the importance of establishing processes within companies to capture and evaluate these ideas, treating them as potential trade secrets until they’re patented.
When to Patent
While patenting can be expensive, Keegan advises that companies already selling products or services should start thinking like the U.S. Patent and Trademark Office. Even minor improvements to existing processes or methods can qualify for patents, offering significant commercial value. However, it’s crucial to weigh the costs, as early-stage companies without a clear market focus might benefit more from allocating resources elsewhere.
Conclusion
The interview concludes with a powerful takeaway: the most valuable patents often cover processes and methods that are likely to be widely adopted by others. These “boring” patents, as Keegan calls them, can prevent competitors from using similar approaches and drive significant business growth.
At Caldwell, we’re committed to helping our clients navigate the complexities of patent law, ensuring that even the most seemingly mundane ideas are protected and leveraged for maximum value.
Read the full interview in Entrepreneur Magazine to dive deeper into Keegan’s insights and learn how to unlock the market potential of your intellectual property.