Explain two reasons how love wood can benefit from a patent
Explain two possible benefits to Love Wood LTD from having a patent. (7 Marks) A patent is an exclusive right granting the holder the right to be the only user or producer of a newly invented product or process for about 20 years.
Having a patent means that Love Wood has a Unique Selling Point that uses a patterned effect wood, this means that Love Wood can charge premium price for their individually designed wooden toys which will mean that they will have an increase in revenue thus increasing their profit.
Since increase in competition is expected as the popularity of individually designed wooden toys increases (according to Padma’s dad) then having a patent will mean that Love Wood do not have to adapt by changing their price away from £83 because the process of joining two different woods together cannot be copies . This gives them a competitive edge enables them to survive.
Having a patent means that Love Wood has a Unique Selling Point that uses a patterned effect wood, this means that Love Wood can charge premium price for their individually designed wooden toys which will mean that they will have an increase in revenue thus increasing their profit.
Since increase in competition is expected as the popularity of individually designed wooden toys increases (according to Padma’s dad) then having a patent will mean that Love Wood do not have to adapt by changing their price away from £83 because the process of joining two different woods together cannot be copies . This gives them a competitive edge enables them to survive.