Why UAE patent registration is critical for tech startups?

Conventional wisdom has it that the companies focusing on innovation must rely on Intellectual Property (IP) protection, especially patent registration in the UAE. Larger tech companies religiously follow this principle as they are known to file numerous patent applications every year. Such companies will typically have large R&D cycles that require significant capital investment.

However, what about other companies, tech startups for instance? Since filing patent registration in the UAE consumes a significant amount of money and time, should tech startups take the plunge? To find an answer to this, you should first consider whether the benefits will justify the cost of patent registration in the UAE. You will get an answer to this question as soon as you finish reading it. Read ahead to understand why UAE patent registration is critical for tech startups.

Patent Gives Exclusive Right over Innovation 

It’s naive to think that the sole purpose of registering a patent in the UAE is to gain the right to use your innovation. This notion is too narrow in scope. Instead, patents give you a larger benefit: the right to exclude others from making, selling, using or importing a particular product or service, and to claim damages (royalties) from anyone who infringes your patent. Let’s put it this way: by carrying out patent registration in the UAE, you can prevent others from exploiting your tech innovation and enjoy exclusive commercial rights for a specified period.

The patent is an effective tool to act against infringers and free users

To enforce the exclusive right guaranteed by patents, it may sometimes be necessary to file lawsuits against the infringers of these rights or even warn them. Possession of a patent greatly enhances the ability to take successful legal action against imitators and copyists of a patented invention.

Giving a positive image of the project:

Through the patent, it is possible to know the high level of expertise and specialization as well as the technical ability of the company, which may be useful for finding financing and commercial support.

Help you Gain Higher Profit Margins 

If your company has a long R&D cycle, you need to put in larger capital investment and time before you can launch the products in the market. For such products, patents will be perhaps the sole means of recouping the R&D investment. With a registered patent, it would be easier for you to set the profit margins high enough to recoup your R&D investment. Also, your patent will be in force for 20 years, which means others can’t enter the UAE market with a product or service covered by the patent.

Enables Long-term Tech Deployment Strategy 

A patent registered in the UAE will be in force for 20 years, which gives you the time frame to create a long-term business model around your technology without worrying about competition. For instance, you want to beta test your product but feel pressured to launch the product before your competitor does. A UAE-registered patent assures you that you will have some recourse even if a competitor tries to reach the market ahead of you. A patent gives you market security for creating a long-term tech product deployment strategy.

Ability to Negotiate Technology Licenses 

You can use patents to leverage negotiating technology licenses. This means other companies can use or sell your products in exchange for royalties. The licensing can bring you long-term benefits as tech innovations usually have a long-term impact on the market enabling you to have the royalty for a long period. In this respect, tech patents starkly differ from patents of other sectors such as fashion, apparel and consumer goods where opportunities are short-lived.

Increases Investment Opportunities  

Securing funding is critical for early-stage tech startups attempting to mark themselves in the innovation sector. Such startups often seek funding from outside funding from venture capital (VC) or other sources. If you have carried out patent registration in the UAE, the investors will trust you as a patent assures that your invention is unique and your technology can’t be imitated. Startups focusing on high-tech sectors such as the AI is most likely to leverage this opportunity as the quality of the product is the key driver of sales there. As opposed to consumer goods companies, tech companies are more likely to succeed even without brand recognition due to the uniqueness of the technology. Investors will be impressed by your successful patent portfolio which will help you gain more funding.

Ability to Leverage Cross-licensing 

If you have tasted success in the tech sector, competitors who have their patents will take note of you. If a competitor asserts their patents against your business, having your patent portfolio provides significant leverage and opportunity in resolving the conflict. When two patent holders in the same industry are forced to engage in this type of IP conflict, cross-licensing can be a viable solution to put the dispute to rest.

By opting for cross-licensing, each party gets a license to the other party’s patents. This will save you from going through a costly litigation process. In addition to settling the initial dispute, cross-licensing gives you access to your competitor’s solutions, which can improve your technology and generally advance your business.

How Can Jitendra Intellectual Property Help you? 

Hope the points detailed in the blog has provided with s about why your tech startup should perform patent registration in the UAE. If you are looking for specific patent advice tailored to your circumstances, consider consulting with the best patent registration agents in Dubai such as Jitendra Intellectual Property (JIP). We have a team comprising the best patent attorneys in Dubai having extensive IP expertise in the tech field. Not only are we qualified to serve as your ongoing patent attorney, but our deeper understanding of your work will also prove invaluable in offering relevant insights and forging a long-term relationship.

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