What Rights Does a Patent Owner Have? 4 Key Rights of Patent Holders

The owner of a patent has four important rights:

  1. The right to exclude – Patent owners have the right to prevent others from making, using, or selling their invention.

  2. The right to license – Patent owners have the right to license their patent to others for money or other compensation.

  3. The right to sue for infringement – If someone other than the patent holder uses their invention without permission, the patent holder can sue for patent infringement.

  4. The right to assign – Patent owners have the right to assign their patent to someone else, either for compensation or for another reason.

A Patent Owner’s Right to Exclude

The most basic right that a patent holder has is the right to exclude others from making, using, selling, or importing the patented invention. This means that if someone else wants to make, use, sell, or import the invention, they must get permission from the patent holder. This exclusive right is what allows patent holders to make a profit from their inventions. In exchange for the inventor making their invention public, by explaining it in detail to the patent office, the inventor is granted exclusive rights to the patent for a limited time.

It's also worth noting that a patent holder's rights are only valid in the country or region where the patent is granted. This means that a patent holder's rights may not be recognized in other countries, and they may not be able to prevent others from making, using, or selling their invention to those countries.

A Patent Owner’s Right to Sue for Infringement

Another right that patent holders have is the right to sue for patent infringement. If someone else makes, uses, or sells the patented invention without permission, the patent holder can take legal action against them. This can include filing a lawsuit in which the patent holder can ask for an injunction to stop the infringing activity. The patent holder can also win monetary damages in a lawsuit against an infringer.

Patent law provides for three remedies to patent holders whose rights were infringed:

  • Injunction – A court order for the infringer to stop using the patented technology. This can be very problematic for a business that has invested resources into making a product that infringes on a patent.
  • Monetary damages – The patent holder can get the greater of the market price a licensee would pay to use the patent, or the patent holder’s lost profit due to the extra competition. If the infringer knew they were violating patent rights and decided to do it anyway, the court may award “treble damages.” This means the patent holder can receive triple the monetary award.
  • Attorney fees – The court may decide to make the infringer pay for the patent holder’s attorney fees. Like treble damages, this is usually only awarded when the infringer acted in bad faith.

The right to sue for infringement can be viewed as a separate right from exclusion. It might also be viewed as the way the patent owner enforces its right to exclude. Sometimes, a patent lawsuit is settled by forcing the infringer to pay for a license to continue using the patent. People or companies who seek patents without ever planning to make or sell the invention, and only use patents to sue others for infringement, are known as “patent trolls.”

A Patent Owner’s Right to License Their Patent

In addition to the right to exclude others, patent holders also have the right to license their patents to others. This means that they can allow others to use their invention in exchange for money or other compensation. Licensing can be a great way for patent holders to make money from their invention without having to manufacture and sell the invention themselves.

Some patent owners may also choose to continue using the patent themselves, in addition to licensing the patent to others. Unlike a patent assignment, licensing a patent does not mean the patent owner loses their other rights over the patent. A patent licensing agreement can be exclusive, meaning only one licensee can use the patent. It can be non-exclusive, meaning the patent holder can grant licenses to many other people to use the patent.

A Patent Owner’s Right to Assign Their Patent

Patent holders also have the right to assign their patents to others. This means that they can sell or transfer their patent rights to another person or company. Unlike with a patent license, once the patent owner assigns their patent to another person or company, the original owner can no longer use the patent. One exception to this rule is in the case of a “license-back,” in which case the patent owner receives a license to continue using the patent from the new owner.

More Information about Patents – Requirements to Get a Patent, How Long do Patent Rights Last, and More

Obtaining a patent is not an easy process and it can be costly. The patent application process can be time-consuming and complex, and it requires a significant investment in both time and money. Legal advice from a licensed attorney is strongly recommended when seeking a patent.

For more information about patents, read this article or seek advice from a licensed attorney who specializes in intellectual property.