How Do We Know If a Patent Exists That Can Pose a Risk To Our Business?
Don’t Risk It
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Freedom to Operate (FTO) is a crucial concept for any company looking to launch a new product. It means that the company can use, make, or sell a product without infringing on someone else’s intellectual property (IP) rights. This includes patents, trademarks, copyrights, or any other IP rights that could pose legal risks.
Why is Freedom to Operate Important?
Imagine you’re buying a piece of land to build on. Before you start, you’d check if you have the right to use the land as you plan. Similarly, an FTO analysis helps a company check if it can proceed with a product without legal issues.
What is an FTO Analysis?
An FTO analysis is a thorough check conducted by an IP attorney. It helps determine if a company can safely use a product or process without infringing on existing IP rights. A positive FTO opinion means the company can move forward confidently, avoiding potential lawsuits or the need for costly licenses.
The benefits of an FTO analysis include minimising infringement risk by identifying potential legal obstacles early, thereby avoiding costly lawsuits. It also protects investments by ensuring that money spent on development and production is safe from IP disputes. Furthermore, it secures market entry by providing a clear path to market, which reassures investors and stakeholders.
When should you get an FTO analysis done?
It is prudent to seek an FTO analysis at strategic points in a product’s development. Before making major investments, companies should ensure the product is legally clear to avoid financial commitments that could be affected by IP issues. For complex products involving multiple technologies and layers of IP rights, an FTO analysis is valuable in navigating potential infringement issues. Additionally, when planning to expand into new markets, whether domestically or internationally, obtaining an FTO opinion is essential to ensure smooth market entry.
After receiving an FTO opinion, the next steps depend on the findings. If restrictions are identified, the company may need to revise the product, purchase the relevant patent, or negotiate a licensing agreement. If no restrictions are found, the company can proceed confidently but should continue to monitor for new IP developments and take steps to protect its own IP.
Conclusion
Freedom to Operate is essential for any company planning to innovate and grow. By conducting thorough FTO analyses, businesses can avoid legal pitfalls, protect their investments, and secure their place in the market. Investing in an FTO analysis is a strategic move that pays off by ensuring smooth and risk-free business operations.