Patent Pending

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Entrepreneurs beware: Even though a patent sometimes can seem like little more than a piece of paper, it grants the inventor the exclusive right to the invention and is the legal tool used when suing someone who has copied or is using the invention. The court's enforcement of the patent right is what stops someone from copying your invention. Sometimes patent litigation is so long and costly that it can drive a smaller company out of business.

Here are some precautionary steps, beyond obtaining a patent, that can protect your invention and keep your company out of court:

* Have your employees sign agreements under which they won't disclose your ideas to someone else.

* Slap copyright notices on any in-house documents such as manuals and procedures that pertain to the product. Then, register your copyright by filing it with the U.S. Registrar of Copyrights. People will still be able to read the material, but they'll think twice about copying it.

* Remember, you have no patent rights while the patent is pending. Play it close to the vest until the patent is issued. It is a good idea to stamp documents "confidential" and not to let sensitive material out of your plant.

Gerald S. Geren, a patent attorney with the Chicago law firm of Epton, Mullin, Segal & Druth Ltd., points out that obtaining a U.S. patent can take more than two years and can cost $4,000 or more. He says that, depending upon the circumstances, it may be smarter not to get a patent at all and to rely on secrecy instead. "If it's a process or a chemical that's hard to break down and can be kept secret," says Geren, "you may be better off keeping it a trade secret."

A classic example of a well-kept trade secret is the syrup for Coca-Cola, the formulation of which Coca-Cola Co. has restricted to a limited number of employees. To this day the secret of "the real thing" has not leaked out.