Patent Biotechnology

Brad Nakase, Attorney

Email  |  Call (800) 484-4610

Biotechnology involves the use of molecular and cellular biology to create or alter processes or products. Biotechnology also includes industrial and scientific branches of learning centered on comprehending and directing biologically active or living material at the molecular level. This important field also typically focuses on the analysis of genetic information as well as DNA techniques, and modern biotechnology is predicted to create vital innovations in multiple disciplines, including environmental studies, health, energy, food, and sustainability.

Through patents, biotech companies gain the freedom to commercialize their important products without infringing on the intellectual property rights of other businesses or corporations. Patents, therefore, help biotech companies prevent competing companies from selling the same invention for a specific period.

This article will explain how patent law applies to biotechnological discoveries and products and why the legal ramifications of patent biotechnology are so important for biotech companies to understand.

Why are patents important in the field of biotechnology?

Biotechnology depends on research

Biotechnology is highly research-intensive. Biotechnology companies usually invest nearly half of their finances into development and research, far more than other trades, including the chemical and pharmaceutical industries. Additionally, the individuals who oversee biotechnology firms must safeguard their research and its results. Obtaining patents is the optimal way for companies to protect their research and the hard work that went into their findings.

Intellectual property rights can become an important goal

Often, small biotech firms license their inventions to bigger companies with the knowledge and resources to market the innovations. Therefore, small companies invest time and energy into convincing investors that their firm possesses a comprehensive intellectual property policy, and that policy usually focuses on patents.

Developing innovative biotechnology is costly.

When companies in the biotechnology industry seek to develop original products, they have to deal with high expenses. One of the key costs companies must bear is funding research time. However, it is comparably inexpensive to recreate competitors’ products and processes. Therefore, placing patents on products and research helps companies reduce the risk of losing their breakthrough products to competitors.

Patents help the biotechnology industry progress.

When a biotech firm obtains a new patent, the public domain becomes aware of the new technology. This is because the patent includes the following:

  • The description of the innovative product or process
  • The claims about the product’s applications
  • The methods of producing the product or process

Therefore, patents permit competing companies to learn what other firms are working on and understand their research results. This sharing process is similar to publishing scientific articles that inspire new ways of thinking and advances. The use of patents helps the entire industry learn and progress, which in turn helps society advance by attaining new technologies.

For example, advances in stem cell biotechnology have triggered breakthroughs in the engineering and modification of stem cells and helped patients through regenerative medicine and therapy.

Patents allow biotechnology companies to feel encouraged and protected and therefore continue their successful research, and that is why these companies are credited with some of the most progressive developments on earth.

Does the “patentability criteria” apply to patent biotechnology?

Patent laws depend on “patentability criteria” that similarly apply to inventions in all technological disciplines. The criteria inventions must meet to obtain a patent include newness or novelty, non-obviousness, and usefulness or utility.

This criteria applies to inventions in all technological fields in the same way. Still, when applying patent law to biotechnological inventions, new idiosyncrasies that do not exist in other disciplines must be considered.

The first set of peculiarities relates to the legal standards involved in patent protection and the scope of patent protection. Patents exist for all inventions in the technological field, according to the TRIPS Agreement (Agreement on the Trade-Related Aspects of Intellectual Property Rights). However, the emerging issue of patents for biological materials, either drawn from natural living organisms or isolated, has created much conjecture.

Some parties argue that biological materials are simple discoveries and, therefore, they cannot be patented. Others contest that biological materials are man-made inventions and are, therefore, patentable. This debate is one of the central conflicts in patent biotechnology.

How does the requirement of “usefulness” fit into the debate?

Usefulness, or “industrial application,” is an important factor when determining if a biotechnological invention can be patented.

Patent rights are typically only granted when the party can show that the invention features a sufficient level of practical use in the application for the patent. The debate over the limits of biotechnology patents includes the relevance of ensuring that the claim is not more expansive than is justified by the biotech invention featured in the patent application.

Specifically, some biotechnology inventions are at such a fundamental and preliminary stage of origination that the invention’s future use or practicality is not yet established.

Additionally, applying the criteria for patentability contains alternative implications concerning licensing and other questions associated with the exploitation of the patent.

Down-steam innovation—or research that builds on preceding discoveries—depends on placing exceptions and restrictions on patent rights, specifically experimental use exception and research. The experimental use exception, a common legal concession to the patent-holders’ exclusive right of use, allows the use of another party’s patented device if such use is for intellectual inquiry, interest, or recreation.

Why is the fact that biological material can reproduce, relevant to the debate?

Another reason that biotechnological inventions do not fit easily within the constraints of patent law is the reality that biological material can reproduce. The characteristic of reproduction requires certain legal determinations in order to decide if a patent is applicable, including:

  • The range of lawful protection for future generations
  • Particular rules for animal breeders, plant breeders, and farmers
  • Exhaustion regimes: In a regime of exhaustion, when a product is put on the market anywhere, it is regarded as an openly traded good, with its sale and import dependent on national

Additionally, the growth of genetic engineering has created a possible overlay between plant protection and plant variety, even in places where plant patent protection is omitted.

Although each of these structures provides both rights and protections in addition to unique limitations, the relationship between patents and biotechnology remains under close scrutiny by those in the legal and scientific fields.

Additional pertinent issues, including biodiversity protection, the commercialization of biotechnological inventions, the ethical concerns concerning these inventions, and more, remain under consideration. Distinguished groups such as the World Trade Organization and the Food and Agriculture Organization continue to ponder the ramifications of patent biotechnology in different forums and have introduced agreements such as the Convention on Biological Diversity to continue to develop provisions to account for biological inventions and our changing definitions of biology and patent law.

The Convention on Biological Diversity has three main goals:

  • The conservation of biological diversity
  • The equitable sharing of benefits resulting from the application of genetic resources
  • The sustainable usage of the elements of biological diversity

Ultimately, biotechnology companies have the power to dramatically alter the healthcare industry’s current state. Biotech firms and their research, theories, and products can change patient care forever and create sizeable profits, and that is why patents are necessary: to protect the breakthrough ideas of this vital industry.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

Best Free Payroll Software for Small Businesses and Startups in 2025

Best Free Payroll Software for Small Businesses and Startups in 2025

Find the best free payroll software options for small businesses and startups in 2025 with essential tools and flexible features. Compare user-friendly platforms offering global payments, tax calculations, employee portals, and cloud access at no cost.
What services does a California business lawyer provide

What Services Does a California Business Lawyer Provide?

A California business lawyer helps protect your company by providing legal guidance on structure, taxation, contracts, and compliance. Their services ensure you avoid costly mistakes and navigate disputes, allowing you to focus on growth.
Where can I find a business lawyer

Where Can I Find a Business Lawyer?

Find a skilled business lawyer to navigate legal matters like contracts, trademarks, and liability issues. Protect your company with expert legal advice and support.
What are the requirements for a business contract termination letter

What Are the Requirements for a Business Contract Termination Letter?

A contract termination letter must clearly state the reason for termination, reference the original contract, and follow required notice procedures. Ensuring proper documentation and adherence to contract terms helps prevent legal disputes and wrongful termination claims.
Are verbal contracts binding in California

Are Verbal Contracts Binding in California?

A verbal contract can be legally binding in California, but proving its terms in court is often difficult. Written agreements provide stronger legal protection, reducing risks of disputes and misunderstandings.
Where Can I Find a Business Lawyer Near Me

Where Can I Find a Business Lawyer Near Me?

Find a business lawyer by seeking referrals, researching credentials, and ensuring they specialize in your industry’s legal needs. Schedule consultations to assess their expertise, compatibility, and pricing structure before making a final decision.
What Is the Statement of Information and When Is It Required

What Is the Statement of Information and When Is It Required?

A Statement of Information is a required filing for California corporations and LLCs, providing key business and leadership details. Filing deadlines vary, requiring annual or biennial submissions to maintain compliance and avoid penalties.
What is indemnity and how does it apply to insurance contracts

What Is Indemnity and How Does It Apply to Insurance Contracts?

Indemnity protects individuals and businesses from financial loss by ensuring compensation for damages under legal agreements, including insurance contracts. Various indemnity policies cover liability, property damage, and professional risks, with terms defining coverage limits and exclusions.
What is gross profit and how is it calculated in financial statements

What Is Gross Profit and How Is It Calculated in Financial Statements?

Gross profit represents the revenue remaining after deducting the cost of goods sold, helping businesses assess production efficiency and pricing strategies. Calculating gross profit involves subtracting direct expenses from revenue, providing insights into cost control and financial performance.
What is gross income and how does it differ from net income

What Is Gross Income and How Does It Differ From Net Income?

Gross income includes all earnings before deductions, while net income is what remains after taxes and expenses. Understanding these figures helps determine tax obligations, loan eligibility, and overall financial health.
What is beneficial ownership information and why is it important for compliance

What Is Beneficial Ownership Information and Why Is It Important for Compliance

Beneficial ownership information helps prevent financial crimes by increasing transparency in corporate structures. Businesses should stay informed on reporting requirements to avoid penalties and ensure compliance with evolving regulations.
What is arbitration and how does it resolve disputes

What Is Arbitration and How Does It Resolve Disputes?

Arbitration resolves disputes by allowing a neutral third party to make binding decisions, offering privacy and efficiency over traditional litigation. Businesses and individuals prefer arbitration for its speed, cost savings, and adaptability, ensuring enforceable outcomes across various legal frameworks.
What is a corporation and how does it differ from an LLC

What Is a Corporation, and How Does It Differ From an LLC?

A corporation is a separate legal entity owned by shareholders, while an LLC offers flexible management and pass-through taxation. Corporations require stricter compliance and structured oversight, whereas LLCs provide fewer formalities and adaptable ownership structures.
How Do You Incorporate a Business, and What Are the Benefits

How Do You Incorporate a Business, and What Are the Benefits?

Incorporating a business creates a separate legal entity, protecting personal assets and offering potential tax advantages. This process enhances credibility, simplifies ownership transfer, and provides growth opportunities while requiring compliance with specific regulations.
How Do You Get an LLC, and What Are the Benefits of Forming One

How Do You Get an LLC, and What Are the Benefits of Forming One?

An LLC provides liability protection, tax flexibility, and management freedom for business owners. Follow seven simple steps to establish one efficiently.
How Do You Start a Business, and What Are the Legal Requirements

How Do You Start a Business, and What Are the Legal Requirements?

Starting a business in California requires careful planning, legal compliance, and financial preparation. From selecting a business structure to obtaining permits, tax registration, and funding, each step is crucial for long-term success.
How Do Accrual Accounting and Cash Accounting Differ in Financial Management

How Do Accrual Accounting and Cash Accounting Differ in Financial Management?

Accrual accounting records transactions when they are earned, while cash accounting records them when money changes hands. Choosing the right method impacts taxes, financial planning, and cash flow management for businesses.
Do I Need a Permit to Operate a Vending Machine

Do I Need a Permit to Operate a Vending Machine?

A vending machine business requires permits, including a business license, EIN, and compliance with state and federal regulations. Proper location approval, ADA compliance, and product labeling are essential for legal operation and profitability.
Are There Grants Available to Start a Business

Are There Grants Available to Start a Business?

Government and private grants provide funding to help entrepreneurs start businesses, with eligibility varying by industry, location, and business type. Opportunities include federal programs, state initiatives, and private grants supporting startups, research, and minority-owned businesses.
What Is a Stock Corporation in California – General Requirements

What Is a Stock Corporation in California – General Requirements?

A stock corporation in California raises capital by selling shares, granting investors ownership and voting rights while maintaining limited liability. These corporations, classified as C or S, follow specific legal steps, including filing Articles of Incorporation and drafting corporate bylaws.
Is a Contract Valid Only if It Is in Written Form

Is a Contract Valid Only if It Is in Written Form?

A contract can be legally binding whether written or verbal, but some agreements, such as real estate deals, require written documentation. A valid contract must include clear terms, mutual agreement, legal capacity, consideration, and intent to create enforceable obligations.
What Is a Cash Receipt and Why It Matters for Business Transactions

What Is a Cash Receipt and Why It Matters for Business Transactions

A cash receipt records the exchange of cash during a transaction, detailing the amount, parties involved, and purchase specifics. Maintaining accurate cash receipts supports tax reporting, financial management, and dispute resolution while ensuring compliance with audits.
What Does It Mean to Have a Retainer in a Legal Agreement

What Does It Mean to Have a Retainer in a Legal Agreement?

A legal retainer is an advance payment that guarantees an attorney's availability. This agreement defines payment terms, service scope, and financial protections.
What Is Quid Pro Quo in Legal Terms

What Is Quid Pro Quo in Legal Terms?

Quid pro quo refers to an exchange where one party provides something in return for another’s benefit or service. It remains lawful unless associated with bribery, corruption, or unfair influence.
Can I Sell Food From Home Legally

Can I Sell Food From Home Legally?

You can legally sell homemade food in California with a Cottage Food Permit, allowing sales at farmers' markets or online. Class A permits allow direct sales, while Class B permits permit wholesale distribution through stores and restaurants.

Eaton Fire Attorney, Los Angeles & Altadena Wildfires Lawsuit

Whether you need a Los Angeles wildfire attorney, Eaton fire lawyer, or Altadena fire attorney, we are prepared to provide the expertise you need. You are not alone.
What Is Accounting - Key Principles, Roles, and Importance Explained

What Is Accounting? Key Principles, Roles, and Importance Explained

Accounting organizes financial data to support decision-making, compliance, and growth. It encompasses principles, roles, methods, and diverse career paths.
Understanding the Cost to Form LLC - Key Insights

Understanding the Cost to Form LLC: Key Insights

Forming an LLC typically costs $129, with additional optional expenses like operating agreements or registered agents. Costs vary by state, with Montana being the most affordable option at $35.
How to Write a Business Plan - Comprehensive Guide for Success

How to Write a Business Plan: Comprehensive Guide for Success

Crafting a business plan outlines your company’s objectives, strategies, and methods to attract investors and achieve growth. A well-maintained plan adapts to market trends, driving strategic focus and sustained business success.
Best State to Form an LLC - Pros, Cons, and Key Considerations

Best State to Form an LLC: Pros, Cons, and Key Considerations

Compare the pros, cons, and key considerations for choosing the best state to form your LLC, including Delaware, Nevada, and Wyoming. See why your home state or these popular options might align with your business goals.

Free Consultation