Medical Device Patent: A Quick Path to Financial Independence?

For physicians, one of the most underutilized techniques to achieve financial independence is through intellectual property.  Almost every physician I meet knows a colleague who invented a medical device.  

Yet for most physicians, the patent system is completely foreign. The confusion is mainly due to the great deal of misinformation online. One company will market patent services for $200, while another will ask for $20,000.

Here, I would like to dispel three common myths about the patent system and lay the groundwork for you to learn more.

Medical Device Patent: A Quick Path to Financial Independence?

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You may have heard of a friend or colleague that has licensed a patent to a manufacturer and made some money.  How prevalent is this exactly? Is licensing a medical device patent simply like winning the lottery? 

First: A Patent Is A Lottery Ticket

The answer may surprise you. In the United States, payments made to physicians from medical device manufacturers and drug companies are open to the public.

From an IP perspective, patents and published applications are now readily accessible from sites like Google Patents and others. Google Books allows the public to search millions of books in a matter of minutes to find relevant information.

Second: I Don’t Have the Resources

“Patent troll” is a pejorative term for one who attempts to enforce a suspect patent right against an accused infringer.  

Third: I Don’t Want To Be A Patent Troll

A less loaded term is a Non-Practicing Entity (NPE). NPEs may include inventors who do not practice an invention, as well as firms who buy IP and offer it to larger companies for a fee. There is a lot of spilt ink on whether every NPE is a patent troll.

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