ENTREPRENEURSHIP FOR SCIENTISTS AND ENGINEERS
CHAPTER 6
PATENT AND TRADEMARK STRATEGY
LEARNING OBJECTIVES
After studying this chapter, students should be able to
1. Discuss the value of developing and ways to develop a patent strategy
2. Explore ways to create and defend a trademark strategy
CHAPTER OVERVIEW
Intellectual property is an increasing source of wealth, competitive advantage, and risk for
companies. The potential to create new revenue sources from existing patents that have never
been commercialized is enormous. At the same time, the need to defend IP against infringers
has never been greater. For these reasons and more, companies need to have a well thought–
out IP strategy in place that contains an arsenal of weapons, strategies and tactics, to strengthen
CHAPTER OUTLINE
1. Protecting patents
a. Establish a temporary monopoly
Entrepreneurship for Scientists and Engineers
2. Protecting trademarks
a. Trademarks and the Internet
3. Licensing intellectual property
4. The license agreement
a. Grant clause
5. Summary
END OF CHAPTER QUESTIONS
1. In what ways can an effective patent strategy contribute to the success of a technology
venture?
• It will help protect the company’s assets against infringement
2. What is the value of developing a trademark strategy?
Trademark infringement is increasing at a rapid rate so companies are now having to
exercise greater care in protecting their trademarks. Moreover, the growth of the Internet
3. What steps should a company take if it suspects that an infringer is violating its patent?
Entrepreneurship for Scientists and Engineers
If a company suspects that its patent is being infringed, it should do the following:
4. Why is it important today for any technology company to have a licensing strategy?
A licensing strategy is important today because licensing speeds the adoption of the
5. From the licensor’s perspective, what would be important to have in place prior to speaking
to potential licensees?
Prior to speaking to potential licensees, you would want to have completed a business plan
6. Suppose you have found a core technology that you want to license to develop and sell
applications in your industry. In addition to the technology, what would you want to have
transferred under the license agreement?
In addition to the technology, you would want to have the know-how transferred and
CASE STUDY SUGGESTIONS
The case study on Skycar illustrates two concepts from the chapter that can be used as the basis
for discussion:
• The difficulty of introducing patented, disruptive technology, including the drain on cash
flow, performance issues, and regulatory issues. What effect do these issues have on
the entrepreneur’s technology development strategy and market entry strategy?
Entrepreneurship for Scientists and Engineers