Emerging opportunities from the critical role of patents

The rapid evolution of technology is influencing all areas of human activity. Its impact on the functioning of the modern business enterprise is very significant, particularly in industries and activities that are driven by innovation. The competitive nature of free enterprise and free markets compels every business organization to deal with the challenges thrown up by the rapid pace of technological change, as well as to innovate constantly to survive and remain successful.

Patents are inherently associated with the promotion, creation, protection and utilisation of innovation, and therefore innovation-driven organizations, whether large enterprises or small businesses, find the role of patents is critical to their business. For the small firm, the implied threat of patent litigation can adversely impact its survival and therefore assumes vital importance in determining business strategy.

A comprehensive awareness of the existing and projected patent landscape is essential to orient business strategy based on available freedom to operate (FTO). To the extent that an organization has patents of its own, it can reduce the cost of licensing technology from existing market players by providing them as part of a cross-licence agreement.

Rajiv Bhatnagar is a senior director, technical, at Anand and Anand