Where Americans File Foreign Patents

We recently spoke with an inventor who asked a number of questions about filing patent applications overseas. His invention was in the construction technology area. He expected that his product would sell well in a number of foreign countries, and he wanted patent protection in those markets.

However, the cost of filing a patent application in each of his anticipated foreign markets would be well over his IP budget. So, his question was, which foreign countries should he file patent applications?

Start by considering any country where the applicant will make, sell, or license the product. Although, this is a general rule that may be cost prohibitive or excessive for some inventors. With budgets and costs in mind, which countries should applicants file patent applications?

The chart below illustrates the number of patents filed by US applicants in respective countries. The red line indicates the percentage of filings by Americans in each country.

Where Americans File Foreign Patents


As shown, American companies tend to file a large number patent applications in China, Japan, Canada, Australia, Brazil, and Korea. But these numbers only provide half of the answer.

The technology areas of the invention may also influence foreign filing decisions. In this regard, another metric to consider is the technology areas are most popular for fling in a foreign jurisdiction.

Where Americans File Foreign Patents


Here we see that 15 percent of all applications filed in the German patent office are transport related. Nine percent of the patents filed in China are for computer technology. Korea is strong in electrical machinery, while the US and Japan receive many applications computer technology and electrical machinery.

Another consideration for an applicant is whether the applicant can enforce their patent rights in the foreign jurisdiction. Indeed, Japan, Canada, and Korea for example, offer judicial systems that are amenable to enforcing a patent as a foreigner. China and Brazil, for example, have judicial systems that are less predictable for foreign litigants enforcing their patent rights.

Many decisions on where to file a patent application overseas are the result of a business interest in the region. Thus, the decision of where to file may be divorced from the intellectual property considerations and made as a business decision.

In sum, when considering where to file a patent application, one should first consider where the product will be made or sold. Then look to the countries that receive the most foreign

patent applications in the technology areas of your invention, and consider filing there. Finally, consider business interests in the region to help make a better decision.

Regardless, your patent attorney should have experience guiding an applicant through the domestic and foreign application process. Best of luck with your patent applications!

Seven Must Know Facts About Patents

Here’s 7 Things to know about Patent Rights – #4 is what most people DON’T know, #1 is the most important to know, and #7 reflects a recent change to our patent laws.

1. First Come, First Served:  The US patent system will only award a Patent on an idea or invention to the first inventor who files a patent application.  If you aren’t the first to file, you risk losing your patent rights.

2. The Clock is Ticking: If you don’t file a U.S. Patent Application within 12 months of public disclosure (such as sharing your idea with others) or within 12 months of offering your invention for sale, you lose your patent rights.  Even still, the longer you wait, the greater the risk of someone else filing a patent application for the idea you came up with first.

Important Note: Although the US gives you a 12 month period to file a patent application after your first public disclosure/offering for sale, most other countries in the world do not.  This means, in those countries, you will have lost your patent rights if you’ve made a public disclosure before first filing a patent in at least one country.

3. Filing a Provisional Patent Is a Great Place To Start: It’s affordable and it’s an essential take away from these 7 facts.  A provisional application secures your priority date (your spot in line) to the patent rights while you develop your idea, market it, and raise funding.  This helps to ensure that no one will beat you the patent office.

4. Put the Public on Notice:  Simply put, once you have a patent or patent pending status, tell everyone about it.  The traditional way to do this was to write your patent number on your product.  However, now this can be done virtually (See Fact 5).  Notice is crucial, because if you don’t provide notice of your patent (or pending) rights, then you aren’t entitled to monetary compensation from competitors who have been infringing your patent rights under your radar.

5. Virtual Patent Marking Makes Things Easy:  Recent updates to our patent laws allow for a “Virtual Patent Marking”.  This simply means that you can now put the public ‘on notice’ of your patent rights over the internet.  If done correctly, you satisfy your notice requirement, and you no longer have the burden of constantly monitoring and notifying your competitors one-by-one.

TIP: The Patent Seal™ is a Virtual Patent Marking certificate issued by licensed patent attorneys that you can use to meet the Legal Notice Requirements under 35 U.S.C. § 287.  Just place the Patent Seal™ Virtual Patent Mark on your website. When your website visitors click on your Patent Seal™, they will be directed to a certificate detailing your intellectual property rights.

6. The more you wait, the more you lose:  It could take months, if not years, to discover and locate people who infringed on your patent.  By the time you find these infringers and put them on notice of your patent rights, they may have made substantial profits from your idea.  Moreover, you won’t be entitled to any of those profits unless you can prove that the infringers had notice of your patent rights.  The Virtual Patent Mark is a legally recognized form of ‘public notice’ that will entitle you to a portion of the infringers’ revenue, even if you didn’t provide them with notice directly.

If you are interested in more detail related to your situation it is best to speak with a patent attorney.

Are You Missing Out on the Defensive Value of a Patent?

As the adage goes, “the best defense is a good offense.”  While this principle may very well hold true in warfare and sports, an all-out patent offensive is not necessary to see value from patent protection.  Patents are commonly viewed as a “sword” with which you can use to go after or attack the opposition.  Alternatively, patents can also be used as a “shield” to defend your company against the opposition. What are some benefits that can be afforded by “defensive” patent protection?

1.  Litigation avoidance through patenting of key technologies

Although litigation avoidance is a goal of most companies, startups and emerging companies are especially vulnerable to the detrimental effects of a potential infringement patent suit.  The cost associated with resolving a potential patent infringement suit can quickly deplete a young company’s limited resources or compel a company into taking a license with unfavorable terms.  However, it is possible for a company to avoid these situations by establishing patent rights around key technologies and innovations before others have the opportunity to patent it.  By securing patent rights to key technologies or innovations early, you can cover your products while creating potential infringement issues for your opposition.  More importantly, pursuing patent protection for promising technologies ensures that the innovation is available for you to use in future products.  Conversely, if a competitor patents an improvement on your technology, it could potentially limit your freedom to operate.

2.  Patents as deterrent to competitor lawsuits

Patents can effectively operate as shields against patent-holding competitors.  To this end, competitors may refrain from suing another patent holder for infringement for fear of a possible countersuit for patent infringement.  Because relevant patents can be used as a potential source of prior art, companies often are more reluctant to litigate its patents against other patent holders due to concerns that the asserted patent may be found invalid.  After a patent has been invalidated, the patent can no longer be enforced against anyone, including key competition.

3.  Patents as tool to negotiate cross-licensing agreements

Even if faced with the prospect of a possible patent infringement suit, having patents around relevant technologies can provide a company with leverage to negotiate a cross-licensing agreements with the competition.  For example, owning patents related to an improvement to a competitor’s technology can be a valuable bargaining chip.  A cross-license to a competitor’s patent often can be preferential to a burdensome licensing agreement or potential litigation.

4.  Patents and indemnification of customers

Owning patent rights to technologies utilized in your products are useful in sending a message to your customers (and opposition) that the underlying technology was developed and patented by your company.  Notwithstanding the foregoing, many customers, particularly larger entities, will still demand certain assurances from your company before selling or using your product.  Specifically, customers may require indemnification against infringement suits in connection with the use or sale of your product.  Having patents related to your products can provide some assurances to the customer, and at the same make it easier for your company to agree to broader indemnification provisions.

5.  An effective patent portfolio can help protect future development and growth

All companies that are developing new products should analyze its activities to ensure it is employing effective patent protection strategies around its technologies.  Effective patent portfolio management should incorporate protecting features and innovations that extend beyond specific products, identifying advancement opportunities around your key technologies, and monitoring your opposition to identify opportunities and threats.  For most startups, their patents are often its most valuable asset, and the minimal cost of securing additional patents in related areas around key technologies is relatively low compared to the potential returns from investors and purchasers.  Good communication between your company and your legal team is essential for protecting innovations, building an effective patent portfolio, and providing value to stakeholders.