Four Reasons Not to Get a Patent: It could depend on your finances and the nature of your idea.

"You've got a great idea, and you want to take it to market.

Should you protect it with a patent?

The knee-jerk reaction is, of course. You don't want somebody stealing your idea. But the answer isn't as clear as it might seem. Experts and entrepreneurs say that there are other considerations that may be more pressing when you're preparing to launch -- so you might want to put off getting a patent, if you get one at all.

Here's a look at some reasons why a patent might not be the best bet.

It may cost too much right now

It's easy to see why patents are appealing. You get 20-year protection on your idea, so nobody can copy the part of the concept that you've patented, and if they do, you can pursue legal action. 

(To get a patent granted in the first place the invention must be novel, useful and nonobvious, says David Nersessian, associate professor of law at Babson College.)

However, for a fledging startup, a patent may pose one basic hurdle: expense. The overall cost of filing can range from $10,000 to $40,000, says David Hsu, the Richard A. Sapp Professor of Management at the Wharton School, University of Pennsylvania. Entrepreneurs who are strapped for cash might be better off investing in necessities first, he says.

You have to be the police

The expenses don't end there. Once you've got a patent, you may end up spending a lot of money -- and time -- making sure nobody infringes on it. Patents aren't self-enforcing, Dr. Hsu says, and holders need to keep abreast of the marketplace to watch for potential copycats. That can mean hiring another firm to do the watching for you, and then taking on legal costs to pursue action if necessary.

Just keeping a secret may work better

Getting a patent can be wise when your idea can be reverse-engineered, such as a medical device or a pharmaceutical, says Nathan A. Evans, partner and registered patent attorney at Wood Rogers Vandeventer Black PLC in Virginia.

If you don't patent such an invention, competitors could figure it out and copy it potentially without legal risk. However, in other cases, a patent doesn't make as much sense.

"If your idea is something that can be kept secret, such as a recipe or complex process that cannot be reverse-engineered, perhaps keeping it as a trade secret makes more sense," Mr. Evans says.

That means using diligence to keep the business information confidential and guard against theft -- moves that will allow you to seek an injunction, and damages, against somebody who steals the secret.

But if you make any public disclosure, even inadvertent, trade-secret protection may be lost forever, Mr. Evans says.

Your name may be more important than your idea

In some cases, some experts say, it may not be worth it to spend a lot of money on a patent at the very start of your business.

Instead, they say, you would get better protection for your company by investing in a trademark -- so that other businesses won't be able to use your company name. Why? Keeping a consistent name -- and preventing others from using it -- can make the business instantly recognizable for customers, even if the company starts selling different products or services.

If a company name changes, a business can lose the cachet it has built up.

What's more, if entrepreneurs give priority to getting a patent -- and wait too long to secure a trademark -- they may find that another company has already registered the trademark in their industry, or has trademarked a name that is similar enough to cause confusion.

"Most often, the worth of a company or product name supersedes the value of a product's capability or unique technology," says Jason Brewster, director of venture programs at the University of Virginia's Darden School of Business. "It is critical to ensure such names are protectable assets."

Another important practical consideration: price. The price tag for getting a trademark can be a fifth the cost of getting a patent, or less." [1]

1.  Four Reasons Not to Get a Patent: It could depend on your finances and the nature of your idea. Haislip, Barbara. 
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 11 May 2023: R.8.