To prevent others from using and competing with inventions and technology developed or licensed by your company. Even if you do not want to take the trouble and expense of patenting and protecting your inventions and technology, it is necessary to obtain patents to prevent others from obtaining any patents blocking you from your invention and technology. You can prevent others from patenting your inventions and technology if you quickly publish or publicize the invention. There is a potential problem because others may be able to see extensions of your inventions and file patent applications for these improvements or new applications, thus blocking you. A portfolio of patents for your company can be valuable in negotiating with other companies holding patents because you can trade use of your patents for use of their patents.
Protection is also available through copyrights and trade secrets.
The value of trade secrets and patents is shown by the recent lawsuits involving Microsoft and patents of Stack Electronics Inc. concerning data compression software. Because each has technology that the other wants, there is the possibility that there may be a settlement that involves sharing technology and patents. Another software patent case involves Microsoft and a claim by Wang Laboratories the some of Microsoft technology violates long standing Wang patents. The effect could be is disturbance of business and loss of money. The growing importance of software patents is shown by the jump in software patent applications from 6,600 to 8,391 in 1993.