Small Business Newsletter
Sign up for our free email newsletter
Question
Patent a novel business idea?
Hi folks! So I am in the process of doing a business plan for new tour business. I feel the idea is pretty original, and searching on the web, I only found something similar in Australia (i'm in the US). Would it be possible to patent my idea so that no one else can steal it from me before I get the business going? If I can patent, what are the pros and cons of patenting? Or should I just hurry the hell up and get my business plan written, find investors, and get moving? I've never owned my own business, but this is something I'm passionate about, and really want to capitalize on the on the hot market. It is a service, and not a product.
4 months ago - 1 answers
Best Answer
Chosen by Asker
It might be possible to get a patent, however, the type of subject matter that can be patented is limited. See 35 USC 101: "Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefore, subject to the conditions and requirements of this title." You business idea would have to qualify as a process, most likely. Business method patents are granted, but have recently been under fire and may have an uncertain future in light of currently pending case. Your "invention" (process/method) must also be new and non-obvious, so the Australia business may limit your ability to obtain a patent. The cons to patenting are cost (probably at very least $10K)and the fact that you need to thoroughly disclose what you are doing. It also takes a number of years to obtain a patent typically. In your case business method patents can be tricky to obtain and difficult to uphold in a dispute. The pros are that you can prevent others from making or using your invention. Also, people use patents as marking tools to attract customers/investors and it makes it easy to sell your business. They protect you when you disclose you idea in ways that an NDA cannot. It is hard to say whether you should pursue a patent and you should probably speak with a qualified patent attorney. Details of your situation are of course important. If you do find investors, make sure to get an NDA when you speak with them.
by Robert Z
4 months ago
Asker's Rating: 