Question

1) In your own words, what is a patent? Of what value is a patent to an entrepreneur? What benefits does it provide?

2) In your own words what is a copyright? What benefits does it provide?

3) What are the differences between Chapter 7 and Chapter 11 bankruptcy? What sort of protections does each offer the entrepreneur?

Answer 1

1. A Patent is an intellectual property that gives the holder the right to prohibit the use or reproduction of an invention by others for a limited period of years(usually 20 years).

For an entrepreneur, a patent is an essential form of a competitive advantage that can be used for gaining market share and help the bottom line. It provides incentives for economically efficient research and development. Patents can be used to both enable and incentivize competitors to design around the patented invention.

Benefits of Patent:

• A patent gives the holder the right to stop others from copying, manufacturing, selling, or importing their invention without their permission
• The inventor gets protection for a pre-determined period, allowing them to keep competitors at bay
• They can use their invention for themselves
• The inventor can license the patent for others to use it or they can sell it. This can provide an important source of revenue for the business