UTILITY MODEL
The Utility Model is a tool for protecting inventions highly democratized in the community of inventors. Below, we show you the graphical representation of the Number of patents granted in Spain Vs Number of Utility Models applied for in Spain.
Utility Patent Vs Utility Models
Although the names are very similar, there are significant differences between a Utility Patent and a Utility Model. Among other differences, for a patent to be granted, substantive examination is required, whereas for a Utility Model, its rigor is much lower. For this reason, there are many countries, such as the United States, that do not accept the registration of Utility Models.
Criteria | ||
Duration | 10 Years | 20 Years |
Innovation requirements | Weak | Strong |
Approval process | Does not require substantive examination | Requires substantive examination |
Taxes | 86€ | 1200€ |
Market Price | Between 1500€ and 3000€ | Between 7000€ and 15000€ |
Approval likelihood | 88% | 48% |
Ease of internationalization | – | + |
Sales posibility | 10% | 90% |
Although the names are very similar, there are significant differences between a Utility Patent and a Utility Model. Among other differences, for a patent to be granted, substantive examination is required, whereas for a Utility Model, its rigor is much lower. For this reason, there are many countries, such as the United States, that do not accept the registration of Utility Models.
Objectives of the Utility Model
The Utility Model pursues the same objectives as patents, protecting the exploitation rights of an invention and granting this right to its inventors. The big difference is that the Utility Model protects inventions with lower range or innovation burden. To put it more clearly: It is used to protect inventions that are developed based on existing products, achieving with these innovative changes, better functioning of the pre-existing product.
Probabilidad de aprobación de un Modelo de Utilidad
Approval likelihood | 2020 | 2021 | 2022 | Average |
97,39% | 99,70% | 93,63% | 96,91% | |
69,41% | 107,49% | 87,06% | 87,98% | |
39,65% | 49,30% | 54,10% | 47,68% |
As you can see, taking as reference the approval rates of Invention Patents (47%), Industrial Design (97%), and Utility Model (88%), you can find a clear answer to why the majority of intellectual property advisors almost always recommend the Utility Model as a method to protect an invention.
The Utility Model is the method of protecting inventions with the highest economic margin for intellectual property advisors. Likewise, it is much more likely that the Patent and Trademark Office will approve a Utility Model than an Invention Patent.
The likelihood of the Patent and Trademark Office granting Utility Model titles is very high, this probability is conditioned by the low rigor with which a Utility Model is evaluated, as substantive examination is not required.
To apply for a Utility Model it is necessary to draft a descriptive memorandum of the invention. If the invention memorandum meets the formal requirements demanded by the Patent Office, the invention will be published in the Official Gazette of Patents and Trademarks. In case during the 60-day publication period, no inventor or company submits an opposition, the Utility Model will be approved. This does not mean that the Utility Model, subsequently, can become an invention patent.
How much does it cost to register a Utility Model?
As usual, we provide clear information. The administrative fees for filing a utility model amount to 101.38 €. Yes, you read it right, it's really cheap to apply for this type of title. So, the difference between the fee amount and what you may find in our quote or that of another intellectual property agent or a patent law firm for these procedures are charges associated with: the background study of the invention (you can do it yourself), the documentation of the invention, as well as the filing and monitoring of the process."
Another important detail is that being the inventor and owner of a Utility Model doesn't necessarily mean that your invention is patentable. Quite the opposite. It is very likely that if your invention lacks sufficient inventive step, or is based on innovation applied to a pre-existing element, this may be the appropriate method of protection for you."
I insist, just because your invention is not patentable and the appropriate method of protection in your case is the Utility Model, doesn't mean it can't be a great business opportunity."
As you also know, the price of a Utility Model is composed of the official fees of the patent office plus the fees of the intellectual property advisors or patent attorneys you choose for the application of the Utility Model. Typically, in Spain, a Utility Model costs between €1500 and €3000. Unlike invention patents or Industrial Designs, the Utility Model has a significant economic margin for the intellectual property advisors, which is why it is the most recommended method of protecting inventions."
Common errors in the management of Utility Models
Error 1: Registering a Model without having conducted a background analysis of the invention. You would be surprised by the number of utility models "identical" that we receive on our desks. Why? Because the analysis to which a Utility Model is subjected by the Patent Office has nothing to do with the rigor of a patent analysis.
Error 2: Deciding to register a Utility Model without exploring the real possibilities of obtaining a patent. Of course, it's easy to propose and charge you for the management of a Utility Model, it's the simplest option, and as you can see in the image, the risk is controlled. However, making this decision without having initiated an active innovation process is precisely what prevents finding opportunities to claim patentable elements.
Error 3: Registering a Utility Model prematurely. In most cases, inventors register the Utility Model before manufacturing a functional prototype. This common mistake means that discoveries or innovations achieved by a professional product development team are left out of your initial protection. Registering a Utility Model prematurely undermines the real protection of your invention.
Error 4: Registering a Utility Model in cases where registering an Industrial Design would be advisable. As you may have concluded by now, for intellectual property advisors or patent attorneys, it will always be simpler and more economically attractive to file a Utility Model than a Patent or an Industrial Design. Therefore, if the improvements you propose for an invention are related to its shape or aesthetics, it might be more advisable to protect an invention through an Industrial Design.
Useful guide to choose how to protect an invention.
Before patenting an invention, it is highly recommended that you design a protection strategy. The invention protection strategy is conditioned, among other factors, by: markets where you intend to sell the invention, Business Model you will use to profit from the Invention, type of investors you will need in the invention launch process, level of innovation of the invention, among others.
Here, we provide you with a useful guide to design your invention protection strategy, although it is always advisable to study each case independently.
Methods of protecting inventions: Industrial Design, Utility Model, Patents.
Situation | Methods of protecting inventions |
I have an idea to improve an existing product. | Patent or Industrial Design |
I want to improve a product that already exists but is not patented. | Utility Model |
I want to improve a product by changing its aesthetics or shapes. | Industrial Design |
I have an innovative idea that doesn't exist yet, but I rely on existing elements | patent |
Do you want us to tell you with examples?
Frequently Asked Questions about Utility Models
When you have an idea that improves an existing product, but the innovation is not too relevant, it is likely that the Utility Model is the best way of protecting the invention. If you are selling your product and it closely resembles a product that is patented or registered as an Industrial Design, it is likely that the judge will refrain from issuing precautionary measures until a final decision is made. Specifically, the main advantage of having a Utility Model is being able to take advantage of time, selling products, until a decision is made in a patent dispute. If your intention is to protect the invention from being copied, internationalize the sale of a novel or improved product, or you intend to sell an invention to a large company or sell a patent to an investor, registering a Utility Model is highly unadvisable.
Due to the internationalization process and recognition of the method worldwide, for the protection period it offers, and for the rigor of the examinations required for approval. It is more advisable to protect an invention with a patent than with a Utility Model.
The rigor of the examinations to approve a Utility Model and an Industrial Design are very similar. In both cases, the patent office is limited to ensuring compliance with document forms, but does not assess the innovation capacity of the registrations. However, Industrial Design has greater international recognition than Utility Models. Additionally, considering the official fees of the patent office along with the fees typically charged by intellectual property advisors, registering an industrial design is usually almost 2 times cheaper.
The Utility Model is a fairly straightforward process. From submission to approval of a Utility Model, it takes approximately 3 months, including the period for exposure of the Utility Model in the Official Gazette of Patents and Trademarks. The process of exposing a Utility Model takes about 60 days. This is the period during which other inventors may oppose the approval of a Utility Model if it bears resemblance to their previously protected inventions.
According to our experience, many inventors who register a Utility Model, subsequently do not maintain a surveillance service of their protected inventions, as substantive examination is not necessary to protect the Utility Model, often, very similar or even nearly identical registrations can be detected at the patent and trademark office.
The price of registering a Utility Model is not particularly cheap. The cost of the Utility Model consists of the sum of the official fees imposed by the patent and trademark office plus the fees of the intellectual property advisors. The fees are approximately 120€, so the cost of filing a Utility Model typically ranges from 120€ to 2000€ or 3000€, which is the economic margin of the advisors who handle this type of advice. While the prices of a Utility Model are lower than patent prices, for intellectual property advisors, they are a much more profitable method, as they require less effort to prepare while the possibilities of applications are substantially higher, as you can see in the comparisons presented above.
The Utility Model is a method of protecting inventions with low rigor in terms of innovation and low rigor in its examination procedure by the patent and trademark office. This low rigor is well known to large companies and patent buyers, so in most cases, according to our experience, it is cheaper and more viable for a company to improve the content or the invention of a Utility Model than to buy it. Based on our experience, patent buy-sell operations are conducted on patents with clear opportunities to be internationally protected. If the inventor's strategy is to protect an invention and then sell the patent, it is advisable to invest time and effort in protecting a utility patent instead of a Utility Model
The protection period of a Utility Model is also shorter than the protection period of a patent. This is another clear argument for choosing a patent when the strategy is to negotiate with patent buyers to monetize an invention.
Bringing an invention to the market and succeeding is neither easy nor accidental
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