GCSE / Level 2 Revision Notes

Starting a Business - Invention

An invention is something genuinely new – something that has not been done before.  It could be a substance, a product, a process etc.

Many of the entrepreneurs who climb the steps leading up to the Dragon’s Den believe that not only is their “invention” unique, but that it also has great business potential.  Several questions usually follow from the Dragons:

• Is the invention really an original idea?
• Have any already been sold (i.e. is there any evidence of demand?)
• Can it be, or has it been protected by patents to prevent competitors from copying it?

Inventions arise after a period of research – often taking many years.  The research process is usually costly, both in terms of cash spent and time taken.  So it seems reasonable that a genuine invention should be capable of protection. For an invention, the protection comes from a “patent”.

A common question asked of applicants on Dragons Den is "have you got patent protection"? However, there are some strict rules that must be applied in order for a patent to be granted. In order for a patent to be granted, the invention must be:
(1) New
(2) Be an innovative step (i.e. not obvious to other people with knowledge of the subject)
(3) Be capable of industrial application (i.e. it can be made and used!)
(4) Not be excluded (certain types of invention don't count - e.g. scientific theories, artistic creations)

If granted, a patent gives the owner the right to take legal action against others who try to take commercial advantage of the invention without getting the permission of the patent owner.  A patent can last for up to 20 years.

A key benefit of a patent is the ability of the patent owner to "licence" the right to use the invention.  For example, a patent owner could grant a larger manufacturing business the right to use the idea in a product, in return for a royalty.