Question

1) In your own words, what is a patent? Of what value is a patent to an entrepreneur? What benefits does it provide?

2) In your own words what is a copyright? What benefits does it provide?

3) What are the differences between Chapter 7 and Chapter 11 bankruptcy? What sort of protections does each offer the entrepreneur?

Answer 1

Answer -

A Patent is basically a license or the authorisation for conferring a right or the title for a particular period of time. It is a kind of a exclusive right that solely belongs to the owner and it restricts other people to make, use or sell the same thing.

A patent is very valuable to the the entrepreneur as it restricts other people to make or use the same product or innovation which was patented. Therefore it leads to an exclusively sole usage of the patented item under the name of that entrepreneur only.

• There can be various benefits of the patents as it gives you the right to use that thing solely on your own and stopping people from, copying, manufacturing, selling or using it.
• The entrepreneur gets the protection for a pre determined period of time allowing to have a monopoly over that commodity and keeping the competition at a bay.
• It leads to increased profits as well by capturing major markets and having high prfit margins.
• It gives the protection benefit along with the prevention of theft or misuse.
• It even helps in expanding the market share which in turn helps in increasing profits.