Patents and legal leverage
Wednesday, July 1st, 2009
Today’s Wall Street Journal has an interesting article about how Toyota is leveraging it’s investment in product development with patents. More specifically, Toyota has been diligently patenting the inventions resulting from the engineering developments associated with its best-selling hybrid Prius brand automobile.
According to the Journal, Toyota has applied for more than 2,000 patents and is building a castle wall around its technology. Raising the barriers to entry in this segment of the car market not only makes it more difficult for competitors to enter the field. It also tees up Toyota’s patents (if and when they issue) for licensing and royalty potential. It’s a great example of legal leverage.
For more information about the power of patents and how to use them for strategic business advantage, click here.
