Valuation models for design patents

Design patents have more potential for profit than meets the eye, says Mauricio Uribe of Knobbe Martens.

A critical role for legal professionals is advocacy regarding how intellectual property strategies can establish and support competitive advantages related to product development and technical innovation. Part of such advocacy also includes how intellectual property assets can form valuable assets in themselves.

Most companies have at least some general appreciation of how the federally granted exclusionary rights under patent procurement and enforcement serve a significant role in an IP strategy and IP valuation models. Most commonly known and understood is utility patent protection that provides exclusionary rights for ideas directed to functional aspects/improvements, often based on subject matter related to making something better, faster, cheaper, more efficient, etc.

However, design patent protection that provides often complimentary exclusionary rights directed to ornamental or aesthetic aspects of innovation can frequently provide key value in an IP strategy and portfolio.