The Importance Of Patent Protection – Why GoPro’s Shares Tumbled

We often hear about the importance of patent protection for innovations. Patents can be one of the most valuable type of intellectual property a business can own.

However, in practice, it is difficult to predict the value patent protection brings to a business. It can take many years to secure a patent from the research and development phase through to the grant of rights. So, there is some unpredictability before a product finally makes it to market.

However, as Apple recently demonstrated, patent protection not only helps your business to grow, but it can also impact the industry as a whole. Apple were recently awarded a patent for an action camera. When the news went public GoPro’s shares tumbled 10% due to the potential increase in competition in a field in which they were largely dominant.

There is more information about the action camera industry in this Guardian article, GoPro shares slump on patent – but is Apple planning a wearable camera?