When is Freedom to Operate Analysis Cost-Effective?
Most of the organizations nowadays have recognized the value of taking the patents for the inventions prior to launching a product. Getting the patents for your invention adds up value to bottom line by enhancing intangible assets and provides your company with big-headed rights. The patent mainly enhances the power of your company in the marketplace and stop your competitors from using your invention without your permission. Less obvious but equally important are the advantages that come up with product clearance also known as Freedom to Operate. FTO analysis incorporates recognizing and analyzing patents of others which might subject your organization to patent-infringement liability. By performing FTO analysis before launching and developing a product or acquiring a new company, your organization can avoid the risk of future litigation and minimize unnecessary expense. The FTO analysis done early in the stage of product development affords company to change design and minimize infringement. Despite an advantage, FTO analysis can also recognize the opportunities for patenting or future development. Identically, performing FTO analysis as a part of due diligence enables to steer clear about an opportunity filled with risk of litigation. The Freedom to Operate search starts with an assessment of service or product. Does any of them subjected to existing license? Do any components create under agreements which incorporates any indemnification clauses? Do product or services differentiate from country to country? Simultaneously, a clearance search is done for the published applications or unexpired patents which might claim several components. At last, an experienced patent provider can analyze the data and offer the conclusion on risk while going forward with service, product, or any acquisition. It is highly crucial to know that FTO analysis can not guarantee completely that your organization will not be sued. The applications and patents recognized mainly depends on the search quality and degree of relevance of every application or patent will be subjected to clarification. There are some applications by others which are on the file but not published at search time, so they are not considered at research part.