Seven reasons to monitor the competition’s patents and how
By Jonathan Lucas, senior associate, and Joseph Garvin, technical advisor
With the pace of business and speed of technology ever increasing, even a small difference that gives one company’s
products or services an advantage can mean big differences in market share. So it is important for businesses to keep up
with their competitors’ activities, otherwise they risk being caught off-guard and left behind.
Most businesses are good at keeping track of the current activities of their competitors as they are often highly
visible, but pre-empting their strategy is a much harder task. A highly effective way is to keep a close eye on their
intellectual property, which will allow you to uncover clues about what your competitors are planning, and take action
accordingly.
Why monitor the competition’s patents?
1. You can determine how your competitors are investing their money, and what directions they are moving in. For
example, you can determine what new products they are developing, allowing you to determine whether to develop competing
products or focus your efforts in a different area.
2. You can determine whether your competitors are planning to enter new markets and which markets they may be
neglecting. This knowledge can help guide your own protection strategy and identify opportunities for business growth.
3. Understanding the type of patents filed in your field can give you a better idea of what can be protected, and
which of your own developments you shouldn’t be giving away. Patents are not just for revolutionary ideas, but for new
products or methods that offer an advantage, or improvements in existing technology. For more information please refer
to: “Patentable subject matter in New Zealand”.
4. Patents can be challenged and it is usually easier to successfully do so before or just after the patent has
been accepted by a patent office. By keeping watch over your competitor’s patent applications, you can challenge
anything that might present an obstacle at the right time, and prevent them from obtaining protection they aren’t
entitled to. For more information please refer to: “Challenging a patent application or granted patent”.
5. A patent provides its owner with a 20-year monopoly in New Zealand over the invention, so every patent granted
to a competitor may critically affect your ability to use your own technology for some time. By monitoring the patent
rights of others in your field, you can ensure you don’t inadvertently invest in technology that you will not have the
legal right to use or sell.
6. Many patent rights are licensed, and by keeping an eye on patent filings you may identify patents for inventions
that would be profitable for you to use or sell under license. You can benefit from identifying this early, for example
by seeking an exclusive license for the technology before other competitors, or by simply completing the license
agreement early and getting the product or service on the market first.
7. It is also worth monitoring patents filed by competitors overseas. Firstly, this will provide you with
information about the technology that may eventually be protected in New Zealand. Secondly, by monitoring an overseas
company’s published patents and applications, you can find out about new technology they have neglected to protect in
New Zealand and which is therefore available for you to use or sell.
How can you monitor your competition’s patents?
The most effective way to monitor the patent portfolios of your competitors is to ask your intellectual property advisor
to set up a ‘watch’ on their activities. They will periodically check patent office databases and provide you with
regular reports with details of any new patent filings or any developments in existing applications in the name of your
competitors.
A watch requires little time or effort on your part, yet you will be kept up to date with any information on your
competitor’s patent activity as it becomes available.
Your advisor can also perform a one-off search at any time to provide you with a detailed report of the available
information about your competition’s patent rights. Bear in mind however that while occasional one off searches can be
helpful, they do not provide you with an ongoing understanding of your competitors’ business strategies or the certainty
of being able to challenge an accepted patent during the time available.
To learn more about how you can best make use of your competitors’ IP portfolios, please contact us to set up a meeting or make an enquiry.
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