Patent Is Worth the Effort
In 1986, Jeff Haines, president and chief executive of Royce Medical Products in Westlake Village decided the best way to grow his company was to launch a new line of innovative orthopedic products. Haines poured money into research and development.
“It’s a strategy that’s been so effective it’s made us a leader in our little part of the medical products industry,” said Haines, whose company holds about 20 domestic patents. “In fact, 75% of our total sales come from the new products we’ve patented since 1986.”
Unfortunately, many small-business owners are reluctant to protect their products because they think obtaining a patent is too expensive or time-consuming. But the U.S. Patent and Trademark Office is not an impenetrable fortress. In fact, the government lends a hand to entrepreneurs by offering reduced filing fees for individual inventors and small businesses. And even with outside legal help, it can cost as little as $2,000 to patent a simple product or technology.
Although it usually takes between 18 and 36 months to obtain a patent, it’s worth the wait: A U.S. patent offers protection for 17 years.
“Patents are useful as a sword to keep other people away from your market,” said Steven Sereboff, a patent attorney with Spensley, Horn, Jubas & Lubitz in Century City.
Sereboff, who specializes in computer-related patents, said patents can be a money-maker, even if you don’t intend to manufacture the product yourself. Once you obtain a patent, you can license others to make and sell the product.
A tip: Work with a patent attorney who is familiar with your industry. Most people don’t realize that patent attorneys are required to have an undergraduate degree in engineering or one of the physical sciences. In addition to passing a bar exam, they have to pass a comprehensive exam given by the Patent and Trademark Office.
Christopher Darrow, who represents Royce Medical, was a mechanical engineer who got laid off from his aerospace job in the early 1970s.
“The patent system is good for competition in general because it forces competitors to come up with something new,” said Darrow, a partner with Poms, Smith, Lande & Rose in Century City.
In recent years, Darrow has helped individual inventors and multinational corporations win patents. Once you obtain a patent, it’s essential to protect it from infringement. Darrow said patent infringement suits, which are filed in federal court, can be costly. However, Darrow said about 90% of the cases are settled before trial.
In many cases, people found to be infringing on patents end up buying licenses to manufacture the product. This not only strengthens your patent, but brings in additional revenue.
In addition to protecting Royce Medical’s splints, braces and other products, Darrow has helped inventors patent an earthquake-resistant dome and cardboard sunshades for automobiles.
Because the patent system is designed to stimulate competition, new and different versions of successful products are often much better than the original.
For more information on the patent process, pick up a copy of “Patent It Yourself” by David Pressman. The $34.95 book is part of the Nolo Press Self-Help Law series. It even includes the forms needed to apply for a U.S. patent. Call Nolo at (800) 992-6656.
You can also write to the Patent and Trademark Office for application information: Commissioner of Patents and Trademarks, Washington, D.C. 20231.
Briefly . . . Business owners seeking help from the state can call a new toll-free “Team California” help line set up by the state Trade and Commerce Agency. The system is set up to handle information and referral requests from both big and small businesses. The number is (800) 326-2606 . . . Have you run across a great name for a small business? How about a simply dreadful name? Send your best and worst small-business names and where the business is located to Jane Applegate, Los Angeles Times, Times Mirror Square, Los Angeles, Calif. 90053.
