Can I Syndicate my patent?
To be able to syndicate your patent you must have lodged your patent in your country, received a Publication date within the previous 3 to 6 months and have either lodged a Patent Co-operation Treaty (PCT) that has not expired or are in the process of lodging a PCT or have the option to lodge a PCT.
Patent Syndication is possible without a PCT or after the PCT has expired however there are limitations to the options and effectiveness of the Patent Syndication
What type of patents can be syndicated?
Any type of patent can be syndicated providing it does not require federal regulation (i.e. gambling, firearms, etc.).
How many countries can I syndicate my patent in?
The restrictions to the number of countries include where you can syndicate your patent are whether syndicator is available in the country to manage the syndication process, whether your patent draws sufficient shareholders to commence the syndication process or whether you deem a country is not commercially viable to syndicate in.
How much equity in my patent do I retain?
The equity retained in each syndication by the patent owner can be negotiated and will be influenced by many factors including the value of the patent, the costs associated with filing the patent in the country of syndication (including any translation costs) and the goals and resources of the patent owner.
What is the Patent Cooperation Treaty (PCT)?
The Patent Co-operation Treaty (PCT) is an international treaty and provides a unified and simple patent application procedure for filing for patent protection in multiple countries simultaneously (as at October 2103 there are 148 contracting countries or states to the PCT).
The National Stage is where the applicant starts to pursue the grant of their patents directly before the national (or regional) patent Offices of the countries in which they want to obtain patent protection. Depending upon the country the National stage must commence within 30/31 months of the patent priority application (N.B. some countries may allow time extensions with payment of applicable fees)
A PCT application does not itself result in the grant of a patent. The granting or rejection of the patent is according to applicable law, in each country in which a patent is filed.
Whichever option is chosen, the inventor / patent owner will end up with a separate patent application in each county.
The main benefits to an inventor / patent owner of obtaining a PCT are;
- It is a simplified process of filing patent applications in a large number of countries (contracting states)
- It provides an extended time frame (up to 18 months) for the inventor to evaluate whether to seek protection in foreign countries and if so, to appoint local patent agents in each foreign country, to prepare the necessary translations and to pay the national fee.
- The priority date of the original patent application in the inventors’ / patent owner’s country is claimed in each country that is a contracting state to the Patent Cooperation Treaty providing the PCT is lodged within 30/31 months after the initial filing date.
Further details on the PCT are available from WIPO
I am a startup/inventor with no revenue. Can I Syndicate my Patent?
Yes, provided you have lodged the patent in your country, received a Publication date within the previous 3 to 6 months and have either lodged a Patent Co-operation Treaty (PCT) that has not expired or are in the process of lodging a PCT or have the option to lodge a PCT. N.B. The Patent Syndication system does not guarantee that your patent will be syndicated in the countries that you have chosen or that your patent will be a commercial success.
Are there any legal requirements to become a Patent Syndicator?
The legal requirements to become a syndicator may vary in each country and economic zone. If you are considering becoming a syndicator it is your responsibility to perform the necessary due diligence to ensure that you are compliant with the rules, regulations and laws governing the country or economic zone you will operating as a syndicator in.
What Are The Risks Involved With Being A Shareholder of a Patent Syndication?
The risks associated with patent syndication shares are similar in nature to investing in any investment open to market forces. One should make such investigations as it deems necessary to arrive at an independent evaluation of any patent syndication investment, and should consult its own legal counsel and financial, accounting, regulatory and tax advisors to evaluate whether to make such an investment.