This is a form of intellectual property licensing called a patent portfolio. The idea is to create a small number of patents that are protected. These are the patents you can sell when you sell your first product (if it isn’t already sold). Since it is a portfolio of patents, you can use them to sue other inventors on the theory that their patent portfolio will be infringed by your products.
What patent is the ‘Pipeline?’
At this point, you could be wondering where the ‘Pipeline’ idea originated. If you ask the Patent Office, they will tell you that they were born from a law case from the 1990s. In 1995 a small company called Daimler-Benz purchased a German software company called Caspi. The idea, as they say, was to make it much easier to buy and sell software. The idea was to buy a patent for your software and use it to sue everyone who tried to sell it without buying it from you first.
But that was a decade ago, and people didn’t start inventing software in the 1990s. That means your pipeline patent is old news.
Today, there are dozens of pipeline patents around the world. Most are used to enforce IP restrictions against software makers that don’t license them.
It’s important to understand that companies who think they have the pipeline are in for quite a disappointment.
One of the primary problems is that patents are not the only way to get a patent. The patent process requires a significant amount of effort and effort to litigate. Even if you win, even if you win you still have to file a new application, and that costs money. And if you lose you still have to go back to the original patent office to file another patent application. You could theoretically build a patent pipeline in 5-10 years, but getting to this point was the challenge.
At this point, it’s important to understand that companies who think they have the pipeline are in for quite a disappointment. If you’ve been reading my blog, you’ll know that I’ve been researching these pipeline concepts for years, and I think these ideas are so smart.
Most inventors don’t have a big idea like this. They’re just using software to invent things like this. And companies don’t want that. The only way to get a patent is for the inventor to build the patent. Which doesn’t exactly seem like a route they’d like to be taking on pipeline rights.
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