Intellectual property protection serves as valuable insight for investors. It can hold weight in the decision of when and whether or not an investor may put their money into a company or product. Patent trends can take that benefit further for investors in that they provide leverage and knowledge based on trends within a particular field of business. Here we will analyze what a patent trend is and how it can be valuable to you as an investor.

What Is a Patent Trend?

A patent trend is a steady increase or decrease over a period of time that pertains to the filing of patent applications in a certain industry or field. For example, if you walk into a grocery store today, you’re likely to find a variety of meat-free options for vegans. Veganism has been around for a long time, but it wasn’t until a few decades ago that companies started patenting their meat-free formulas to create products to meet the accessibility for that core customer demand. The increase has been pretty consistent over time, and is only expected to grow with the increase of climate change and consciencious consumerism. This is an indication of a patent trend, but there are thousands of other examples, from computers and technology to medical products.

So, how can investing in companies that pay attention to and implement patent trends into their portfolio help you as an investor? Here are two ways.

You’re More Likely to Have a Reliable Business Partner

Intellectual property is critical to investors, and if the company carefully manages their patent portfolio, this is pretty indicative that the company will be reliable to do business with. Now, managing a patent portfolio responsibly isn’t just a matter of obtaining IP protection for your products. It also means that you closely watch which patents are best serving your business, and which ones will serve future development. If a company invests in active IP management and monitors patent trends, it shows that they are serious about their product and are business savvy. Investors are only as strong as the companies that they invest in, and a company’s intellectual property strength can make or break an investor’s wealth. A company’s strong business grounding is a great sign for investors who are deciding where to entrust their money.

It Shows Recognition of Innovation

Investors are constantly on the lookout for profitable new venues and opportunities. For an investor, being on the cutting edge of innovation is paramount. Investors grow their wealth through understanding the market, and intellectual property is an important aspect of that. Innovation seldom happens in a vacuum. Rather, it is the result of increased demand, increased interest, and the culmination of a few great ideas. As you follow and monitor patent trends, you’ll be better able to determine where the market is headed.

Since patent trends are just that–trends–you want to ensure that the company isn’t simply following a short lived fad. To be of real value, the companies you invest in and the patents in their portfolio should be a part of a larger movement that follows where the world is shifting. This will help increase your value as an investor and the value of the companies you put your money toward.

At Global Patent Solutions, we understand the power of patent trends and what they can do for you as an investor. If you’re looking to see what patents are trending in the market, our Patent Landscape Report can give you the competitive edge you need. Contact us today.