What is a patent worth?

The “patents are useless” narrative: what’s behind it?

There is undoubtedly some truth in the criticism. People who say “patents aren’t worth it” often point to two main issues.

• High costs: drafting, prosecuting, maintaining, and enforcing a patent can be expensive.
• Low return on investment: many patents never generate significant revenue, and enforcement can be difficult for small businesses or individual inventors.

For example, one report suggests that around 97% of patents generate less revenue than the cost to obtain them, with U.S. patenting costs alone typically ranging between $5,000 and $15,000, depending on the complexity of the invention, and international filings costing considerably more. (1)

Patent attorneys also acknowledge that litigation can be costly. UK firm Swindell & Pearson notes that taking a patent case through to trial in the Intellectual Property Enterprise Court (IPEC) may cost between £200,000 and £300,000, which is already designed to be a lower-cost route for small and medium-sized enterprises. In higher courts, expenses can be considerably greater.(2)

So yes, patents can be expensive in both money and time. But the real question is not whether they are perfect. It is whether they can provide value when used strategically, in the right circumstances, and at the right time. At Innovate Design, we can get you cost-effective patent-pending earlier in the innovation development process, whilst helping you validate the feasibility and desirability of your concept.

In reality, a patent is often a powerful deterrent. Many established companies avoid copying or challenging a patented invention, not because they could not afford to, but because they do not want to risk damaging their reputation or becoming entangled in legal disputes. It gives inventors credibility and leverage long before any court action is necessary.

A good example is Philips, which built one of the most successful patent licensing programs in the world. Instead of relying on constant litigation, Philips used its patent portfolio in lighting, electronics, and optical media to negotiate partnerships and cross-licensing agreements. Its patents covering CD and DVD technologies were licensed to nearly every major electronics manufacturer, generating steady revenue while establishing Philips’ inventions as global industry standards.(4)

Just be “quick to market”:  why that’s risky.

Why bother with patents when you can just be the first to market? In fast-moving sectors, that may seem tempting, but relying only on speed can expose you to serious risk.

• Reverse engineering and copying: Without legal protection, once your product is released, a competitor can dissect it, mimic its function, and compete directly. A patent or even a pending status gives you grounds to stop that.
• Independent invention: Even if your idea is genuinely new, someone else could independently develop the same solution and file a patent application before you.
• Big players do both: Speed and protection go hand in hand. For example, Google’s U.S. Patent 10,241,668 covers a drag-and-drop feature used across applications, showing how seriously large firms treat protection alongside innovation (patents.google.com).

Speed certainly matters, but for most small innovators, it is a luxury they cannot rely on without protection in place.

The real value of a patent

While patents certainly aren’t guaranteed money-machines, they do offer strategic value. Here are the main ways they help:

1. Protection from competitors

• Even a pending patent can act as a deterrent: competitors see that something is protected, which raises the barrier to copying.
• Large corporations do this all the time. Take L’Oréal, for example: they hold extensive patent portfolios to stop others from entering their territories.
• For smaller inventors and SMEs, that protective shield is even more critical because one infringing competitor could wipe out the advantage you spent years building.

2. Value for investors, partners and acquirers

• When exploring third-party investment, licensing deals, or exit via acquisition, patent assets (or a credible IP strategy) are often a must. It is also a good idea to have a patent pending before disclosing your ideas to the industry or investors.
• Even patent attorneys regard patents as value drivers, Swindell & Pearson wrote that “if your company obtains patents for commercially useful inventions, the company will almost certainly be worth more than it would if the company did not have them”

3. Leverage in licensing or cross-licensing

• You may never manufacture a product yourself; in many cases, revenue can come from licensing.
• A solid patent lets you negotiate from a position of strength.

4. Risk management in the early stages

• In early stages of innovation, NDAs may not provide sufficient protection.
• Having “patent pending” status helps you engage potential partners or investors while signalling that you take your IP seriously.

5. Long-term alignment with strategy

• Not every patent will be a blockbuster, but a well-chosen suite of patents (or patent families) aligned with your business model can support long-term positioning, not just short-term sales.
• All that said, not every idea deserves a patent. Strategic selection, good drafting, and timing are critical.

The Mandy Haberman Story: A Patent That Paid Off

To illustrate how patents do deliver value when used wisely, let’s look at a real success: Mandy Haberman.

Mandy Haberman is a serial inventor and entrepreneur known for the non-spill AnywayUp® cup and the Haberman Feeder for babies with feeding difficulties. Her use of patents has been central to her commercial success.

• Her AnywayUp cup used clever valve technology to prevent spillage. It solved a long-recognised problem with a simple design.
• She filed patents to protect the mechanism, preventing imitators from undermining her advantage.
• She engaged in legal challenges—for example, opponents tried to challenge her European patent (No. 0 634 922) on grounds of novelty, priority and inventive step.
• Over many years, these protections and legal actions ensured she retained control, negotiated licensing agreements, and kept copycats at bay.

In short, Mandy used patent rights not just defensively, but as a structural part of her business model.

Her journey is instructive: patents alone don’t make you rich, but they gave her a foundation from which to commercialise, grow, and defend value.

Final Thoughts

So, what is a patent worth? The honest answer is: it depends. It’s not a guarantee of riches, but in the right hands, it’s a powerful strategic tool that turns ideas into defensible business assets.

Yes, there are critics. Yes, many patents don’t produce direct revenue. Yes, costs are real. But used wisely, especially by SMEs and innovators who rely on ideas rather than scale, patents can be the difference between being copied out of the game and owning your niche.

To learn more about patenting, watch the first in our mini series on Instagram or Facebook.

Sources

1-SteveBizBlog – “The Honest Truth: Why Patents Are Often Not Worth It” (discussion of costs and limited returns on patents).
https://stevebizblog.com/the-honest-truth-why-patents-are-often-not-worth-it

2 -Freeths LLP – “Cost Capping Pilot for Patent Disputes Welcomed by UK SMEs” (overview of cost structure and IPEC vs higher courts).
https://www.freeths.co.uk/insights-events/legal-articles/2023/cost-capping-pilot-for-patent-disputes-welcomed-by-uk-smes

3-Swindell & Pearson – Insights on typical litigation costs in the UK’s Intellectual Property Enterprise Court (IPEC).
https://www.patents.co.uk/news/2025/patents-arent-worth-obtaining-right

4-Philips Intellectual Property & Standards – Overview of Philips’ global patent and licensing strategy.
https://www.ip.philips.com/

5-WIPO Magazine – “How Philips Turned Invention into Innovation: A History of Licensing and IP Strategy.”
https://www.wipo.int/wipo_magazine/en/2020/04/article_0003.html

6-Philips Annual Report (2022) – References to income from IP royalties and licensing activities.
https://www.results.philips.com/publications/ar22