Why every engineer should know something about patents

A flood of new patents is setting Europe in motion. The European Patent Office (EPO) recently reported a record number of patent applications last year: 201,974. This increase is no coincidence, but the direct result of the rise of technologies such as quantum computing and AI. In a rapidly changing world, attention to intellectual property is an absolute necessity. Yet many engineers still view it as something far removed from their daily work. In this article, we explore the benefits of a patent and explain why adopting a well-thought-out IP strategy early on is wise.

The essence of a patent is quite simple. An inventor discloses his technical invention to the public. In exchange, he receives a temporary exclusive right to exploit that invention commercially. In most countries, this right lasts for a maximum of twenty years. Many leading companies protect their innovations in this way. Tesla recently patented a system that extracts hot air from the cabin to make cooling more efficient. Apple recently patented a self-monitoring chip that automatically detects and corrects performance issues.

The benefits at a glance

Engineers in the high-tech sector solve complex technical problems every day. Within engineering teams, new algorithms, control strategies, hardware architectures, production methods, and software tools are constantly being developed. Yet intellectual property remains strikingly underemphasized on the shop floor.

And that’s a shame. A patent grants a company the exclusive right to use a technology. This allows investments to be recouped, competitors to be kept at bay, and markets to be shaped to the company’s advantage. For startups, patents are often the definitive proof that their technology is truly significant—and therefore worthy of investment.

Moreover, thanks to patents, other engineers can learn from existing solutions. Global patent databases now contain tens of millions of technical documents. For engineers, this is a goldmine of information, as it prevents teams from reinventing the wheel.

Patent wars: competition through technology

The strategic value of patents becomes clear in sectors where technology is the deciding factor. In the semiconductor industry, the rivalry between ASML and Nikon is a well-known example. Both companies develop advanced lithography systems and have built up an extensive patent portfolio over the years, ranging from optical systems to wafer positioning and exposure techniques. In such markets, a patent dispute can determine who is actually allowed to market the technology. In 2019, the parties reached a broad settlement, including a cross-licensing agreement and royalty arrangements.

These types of conflicts also occur in the smartphone industry, involving players such as Apple, Samsung, and Google. Such cases often involve hundreds of patents, ranging from hardware to software and user interfaces.

The three strict requirements for a patent

It is clear that patents are an essential part of technological innovation. But not every invention is automatically eligible for protection. Three strict conditions apply: novelty, inventiveness, and industrial applicability. Novelty means that the invention must not have been publicly known anywhere in the world before. Inventiveness means: the solution must not be obvious to an average person skilled in the art. However, it does not have to be a revolutionary breakthrough. It is precisely small, clever improvements to existing machines or processes that often make for valuable patents. The third requirement is that the invention must be industrially applicable. In engineering practice, this last condition is usually met quickly.

Software and AI patents: A specific approach

Many modern innovations are based on software, artificial intelligence, and machine learning. For patents, this type of technology requires a different, specific approach.

In Europe, an algorithm or mathematical method is not patentable in and of itself. There must be a technical problem that is solved using technical means. For example, AI that optimizes a factory’s energy consumption or an algorithm that improves the control of a robotic arm. In addition, a demonstrable technical effect is required. In the United States, the emphasis is slightly more on practical application, which means the scope for patents is somewhat broader.

Another important legal issue within AI is inventorship. Both the EU and the US have confirmed that only a human can be recognized as an inventor; AI systems cannot fulfill that role.

Strategic choice: patent or trade secret?

Not every innovation needs to be patented. Sometimes a trade secret is a better strategy. This is because a trade secret can last indefinitely, whereas a patent expires after twenty years. Consider complex production processes or specific algorithms that cannot be reverse-engineered from the outside. To qualify as a trade secret, the information must remain strictly confidential. Companies must take demonstrable measures to ensure this, such as using non-disclosure agreements (NDAs) and securing access to documentation.

The major risk associated with a trade secret is “reverse engineering.” If a competitor independently discovers or replicates the technology, there is no longer any protection. A patent, on the other hand, offers protection against any form of commercial use by third parties, regardless of how they discovered the technology. For engineers, it is essential to consult with experts early on regarding this choice. Publishing too early in a scientific journal can permanently block the path to a patent. Coordination between research and legal protection is therefore an absolute necessity for every innovative company.

The bridge between technology and law

To implement an effective IP strategy, it is wise for engineering teams to work closely with legal experts. Many companies operate with cross-functional teams. In this context, “IP ambassadors” are often appointed within the technical departments. They serve as the first point of contact and identify potentially patentable ideas at an early stage. Regular “IP check-ins” during the development process work much better than taking action after the fact. It is a misconception that only major breakthroughs matter. It is precisely the daily technical improvements that can form the core of a strong market position.

In this process, the patent attorney plays a key role. These professionals understand the details of the engineer’s work. They translate the technical aspects into the legal language of patent claims. Because they are bound by professional confidentiality, they can be involved at a very early stage.

European autonomy

In short, by using patents strategically, companies strengthen their competitive position and create tangible economic value. This is also essential for European autonomy across many different sectors. Think of semiconductors, quantum technology, medical technology, and digital technology. With last year’s record number of patent applications, Europe appears to be increasingly committed to protecting its own technology.