How does the licensing revenue potential of a broad method patent compare to one protecting a single physical product?
Answer
A broad method or system patent covering a fundamental process can often generate more licensing revenue.
The scope of the patent claim heavily dictates potential revenue. A broad patent that covers a fundamental process, such as digital communication or genetic editing methods, is applicable across countless different products and services. In contrast, a patent protecting only a single, specific physical product has a much narrower scope of application. Consequently, the broad foundational patent can command significantly more licensing revenue because it acts as a tollgate for an entire segment of commerce or technology.
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