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Faizan
Companies protect their investments in the development of new products by patenting them. Patents give the holder exclusive rights to produce and sell the product, or license the rights to do so, for up to 20 years depending on the type of product. Competitors can't produce the same product during this time without buying the rights, but when the patent expires, anyone can produce the product legally and charge a lower price.
Reasons for Strategic Patent Management
While a patent is active, the holder has an exclusive position and can charge whatever price the market will bear. Pharmaceutical companies depend on their patents for high revenues and employ strategies to extend the commercial life of their products after the patents expire. These strategies can be broadly applicable to other types of products, but before you attempt them, seek the advice of a patent attorney. Patent law is complicated and small mistakes can make your strategic efforts worthless and can even leave you open to expensive lawsuits.
Same Product, Different Use
One strategy often used by pharmaceutical companies is to maintain the product formulation but patent it for a different use. When Merck's popular prostate drug, Proscar, went off patent, the company patented the formula as hair-loss treatment under the name Propecia. The compound remained the same but the new use required FDA approval. Consider what other uses your product might have that were not named in the original patent, and begin your preparations for the new product well in advance of the patent expiration.
Reformulating, Combining and Changing
When the patent expired on Lilly's extremely profitable drug, Prozac, the company reformulated it to a once-weekly dosage and re-patented the compound for treatment of per-menstrual complications and sold it under the name Sarafem. Other drugs have been combined to produce a different and patentable product. Another strategy has been to change the way the drug is administered -- for example from a daily pill to a monthly injection. Consider whether you can combine your product with another, like adding a new feature that creates a new use for the product. If you can change how the product is operated, it might be patentable. Not all such changes will qualify for a new patent.
Building a New Brand
If you can't find a different use or change your product to qualify for a new patent, consider building a new brand designed to be a less-expensive alternative as Gillette did when it created the patented disposable razor blade to be used with its patented handle. However, Gillette missed an opportunity when Bic launched an inexpensive, totally disposable razor that eclipsed the Gillette system. If you can't alter your designs enough to qualify for a new patent, just producing a less expensive model under a new brand might maintain your market share against competitors when your patent expires.
Reasons for Strategic Patent ManagementWhile a patent is active, the holder has an exclusive position and can charge whatever price the market will bear. Pharmaceutical companies depend on their patents for high revenues and employ strategies to extend the commercial life of their products after the patents expire. These strategies can be broadly applicable to other types of products, but before you attempt them, seek the advice of a patent attorney. Patent law is complicated and small mistakes can make your strategic efforts worthless and can even leave you open to expensive lawsuits.
Same Product, Different Use
One strategy often used by pharmaceutical companies is to maintain the product formulation but patent it for a different use. When Merck's popular prostate drug, Proscar, went off patent, the company patented the formula as hair-loss treatment under the name Propecia. The compound remained the same but the new use required FDA approval. Consider what other uses your product might have that were not named in the original patent, and begin your preparations for the new product well in advance of the patent expiration.
Reformulating, Combining and Changing
When the patent expired on Lilly's extremely profitable drug, Prozac, the company reformulated it to a once-weekly dosage and re-patented the compound for treatment of per-menstrual complications and sold it under the name Sarafem. Other drugs have been combined to produce a different and patentable product. Another strategy has been to change the way the drug is administered -- for example from a daily pill to a monthly injection. Consider whether you can combine your product with another, like adding a new feature that creates a new use for the product. If you can change how the product is operated, it might be patentable. Not all such changes will qualify for a new patent.
Building a New Brand
If you can't find a different use or change your product to qualify for a new patent, consider building a new brand designed to be a less-expensive alternative as Gillette did when it created the patented disposable razor blade to be used with its patented handle. However, Gillette missed an opportunity when Bic launched an inexpensive, totally disposable razor that eclipsed the Gillette system. If you can't alter your designs enough to qualify for a new patent, just producing a less expensive model under a new brand might maintain your market share against competitors when your patent expires.
Posted in: Products & Brands
