Does relying on one patent or trademark lower my business’s price?

A business built on one patent or one trademark depends on a single right. BDC’s negotiation guide lists patents, brand reputation and unique intellectual property among the assets that contribute to value. The facts behind a single right are ones you can check yourself, and they are questions of law and paperwork before they are questions of price.

How long a patent lasts

Under the Patent Act, for applications filed on or after 1 October 1989, the term is 20 years from the filing date, subject to section 46. Section 46 requires the prescribed fees to be paid on or before the prescribed dates to maintain the patent’s rights in effect, and the Act has separate provisions for an additional term in some cases. Check how much of the term remains and whether the fees are paid.

Transfer and title

A patent, an application and the right or interest in an invention are transferable, in whole or in part (Patent Act s.49(1)). Subject to the regulations, the Commissioner records a patent transfer on the request of the patentee or, on satisfactory evidence, of a transferee (s.49(3)), and an unrecorded transfer is void against a subsequent transferee if the later transfer is recorded (s.49(4)). A trademark, registered or not, is transferable either in connection with or separately from the goodwill of the business (Trademarks Act s.48(1)). Confirm in whose name each right is held before a buyer asks.

Keeping a trademark registered

The Canadian Intellectual Property Office says a registration can be renewed every 10 years, and that a mark not used for a long time may be taken off the register. Under s.45(1) of the Trademarks Act, after three years from registration, unless the Registrar sees good reason to the contrary, the Registrar must at the written request of any person who pays the prescribed fee, or may on the Registrar’s own initiative, require the owner to show whether the mark was in use in Canada at any time in the three years before the notice.

When the edge is know-how

The Canadian Intellectual Property Office describes a trade secret as business information that derives its value from its secrecy. It lasts as long as it is kept secret and involves no registration. If your edge is a recipe or process, be ready to show how that secrecy has been protected.