The US Patent and Trademark Office has the task of helping the patent system function better by allowing it to make more informed decisions. The FOSS Patents Initiative collects the most relevant FOSS Patents and then helps companies develop better technology in order to avoid legal issues. Each year, the IPI distributes a report that looks at FOSS patents in the US.
So, there are two things to consider when you look at a patent.
First, it should be noted that I’m looking at “patent applications” (a little bit like patents). This means that patents applied for are “patentable”. This is true even if they don’t get listed on patent databases or are granted only very rarely for trivial reasons. Thus, it is important to keep track of all kinds of patents, not just patent “permissions”.
Second, I don’t just count patents, I look at “prospectus” (a long title with lots of text that describes how the company came about and how it wants to use this new technology). That means that when a company gets a patent, it is entitled to pay taxes on all of its profits for 5 years after their patent application. These will be taxed at their lower 30% rate. But that number grows over time.
It’s also important to consider that, while some patents are “inventory” – like software or electronic circuits – others are “public use”. There’s a difference between a “claim-in-suit” patent and a “claim-in-use”. In the US, this definition is very important. The US patent office issues patents to protect new technologies from being patented – these patents are the actual new technology that will be used to make new products. That means that, for example, most computer chips must be licensed out to other companies for use. But in other countries, this definition is less clear. For example: in Europe, there is no specific line on patents which must always be licensed out. You might be able to claim to be using a “new product” and you may not necessarily need other tech vendors licensing it out.
If you do have a patent and would like to license it out to customers, then you need to file a patent application. That’s the process by which you get a patent and are granted one. It’s important to understand the difference between patent and prospectus, which will make that process a little easier to follow.
If you want to pay a tax on
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