This is one important aspect of patent rights.
Imagine that Company B’s product Xb may infringe Company A’s patent P1. In this situation, Company B will try many strategies to avoid enforcement of patent P1. However, if product Xb may infringe not only P1 but also P2, P3, P4, P5, and more, the situation becomes much more difficult for Company B.
Reducing the Will to Fight
Let’s assume that product Xb has a 70% chance of avoiding infringement of patent P1. In other words, its “safety level” is 70%.
If the safety level against patent P2 is also 70%, then the probability of avoiding both P1 and P2 is:
0.7 × 0.7 = 49%
If the safety level against patent P3 is also 70%, then the probability of avoiding all three patents (P1–P3) drops to about 34%.
For four patents: about 24%.
For five patents: about 17%.
For six patents: about 12%.
By holding many patents, Company A can more easily exclude product Xb from the market.
Also, by enforcing multiple patents as a package, Company A (the patent holder) can significantly reduce Company B’s willingness to fight.
Forcing Design Changes
Company B may redesign product Xb to avoid patent P1. Then it may redesign again to avoid P2, and again to avoid P3. However, after these repeated changes, the product might again risk infringing P1.
Excessive design changes can lead to:
・delays in product development
・increased costs
・reduced usability
By holding many patents, Company A can reduce the competitive threat from product Xb.
Value Is Determined by Others
Company A’s strategy of “attacking product Xb with multiple patents” only works if there are several patents that actually cover product Xb.
Therefore, Company A must prepare a portfolio of patents in advance, anticipating future competing products. However, this is not easy.
When planning its own product Xa, Company A files patent applications to protect the product concept. First, it identifies and patents key technical features closely related to the concept (selling points).
Next, it defines and patents additional features that similar products would likely need or want to include.
The more attractive the concept, the more valuable these patents become.
Real estate value depends on whether others want to buy the location. Land in a remote area that no one wants has little value.
Patents are similar. Patents related to concepts that other companies also want to use have higher value.
If the concept of product Xa is attractive, competitors will want to create similar products. If that concept is protected from multiple angles by many patents, competitors will find it difficult to enter the market. As a result, Company A can protect the revenue generated by its valuable concept.
Products and Patents Exist in Parallel Worlds
Sometimes people say:
“We filed this patent because we planned to implement the idea in our product. But now we decided not to use it, so we no longer need the patent.”
However, even if an idea is not used in your own product, the patent still has value if competitors might use it.
Also, an idea not used today may be useful in future products.
On the other hand, if an idea is implemented in your product but is unlikely to be used by others (for example, very niche or highly specialized), the patent may have low value.
It is important to ask:
“Is this a patent that others would want?”
Products (physical things) and patents (ideas) are closely related, but they are fundamentally different.
Long-Term Value of Patents
Patent value may appear years later.
You may later regret:
“If only we had kept that patent.”
“If only we had filed that idea.”
It is common for companies to increase patent filings when business performance is good, and reduce filings when performance declines.
However, intellectual property is essentially a long-term investment.
Therefore, it may be better to manage patent investment based on development progress, rather than short-term business performance.