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How to Make the Most of Industrial Property Rights: Strategies and How to Respond to Infringement

Industrial property rights—such as patents, utility models, designs, and trademarks—are critical assets for strengthening a company’s competitiveness. However, mismanaging their use or failing to respond properly to infringement can lead to significant losses. In this article, we explain how to leverage these rights effectively, explore different types of licensing agreements, and outline practical steps for dealing with infringement.

Types of Industrial Property Utilization
Owning industrial property rights is only the beginning—the real question is how to use them strategically. There are several approaches, and choosing the right one depends on your business goals and market conditions. Here are three primary methods:

Exclusive Use
The most basic approach is to use the rights exclusively within your own company. By manufacturing and selling products without granting licenses to others, you can secure market dominance and expect higher profits. However, this strategy requires vigilance against infringement, carries the risk of invalidation challenges, and may limit technology diffusion, potentially slowing growth. Success depends on balancing exclusivity with market realities.

Licensing
Licensing allows you to grant other companies the right to use your industrial property under agreed conditions. The licensor earns royalties, while the licensee gains immediate access to valuable technology, reducing R&D costs and time. Benefits include:
For Licensors: Generate revenue and recover patent investment costs.
For Licensees: Acquire essential technology quickly, avoid infringement risks, and create opportunities for collaboration.

Transfer of Rights
If you have no plans to use an invention or believe another company can better commercialize it, selling or assigning the rights may be the best option. This can yield higher returns than licensing and eliminate maintenance costs. However, once transferred, the rights cannot be reclaimed—so careful consideration is essential.

Types of Licensing Agreements
Licensing arrangements vary based on strategy and technology characteristics. Common types include:

Exclusive License
Grants one company exclusive rights to use the patent, preventing even the patent holder from using it. Exclusive licensees can sue infringers, often making this option more valuable than a standard license.

Non-Exclusive License
Allows multiple companies to use the patent. Recent legal reforms ensure that non-exclusive licenses remain valid even if ownership changes.

Sublicense
Permits a licensee to grant usage rights to a third party, provided the original agreement allows it. Sublicenses automatically terminate when the main contract ends.

Partial License
Limits usage to specific regions or product categories. For example, a company that dominates the eastern market might grant a license to another firm for the western market. This approach minimizes risk but requires careful contract drafting.

Cross-License
Two companies exchange patent rights, enabling both to market products without infringement. This resolves overlapping patent issues and strengthens market position.

Patent Pools
Companies in the same industry combine their patents and manage them collectively to control the market. While powerful, this strategy involves complex agreements and potential antitrust risks.

Responding to Infringement
If your patent is infringed, several civil remedies are available:
Injunction: Stop the infringement and demand disposal of infringing products and equipment.
Damages: Claim compensation for losses, with special calculation rules under patent law.
Reputation Recovery: Request corrective measures such as public apologies.
Return of Unjust Enrichment: Recover profits gained by the infringer.
These claims are subject to statutes of limitations, and criminal penalties—including fines and imprisonment—may also apply.

Consult SKIP for Expert Guidance
Industrial property rights offer diverse opportunities, but selecting the right approach requires strategic insight. At SKIP, we provide comprehensive support for patents, designs, trademarks, and related issues. Our experts specialize in global IP challenges and deliver tailored advice for each market. Contact us today to discuss how we can help protect and maximize your IP assets.