**Abstract**

Patent is a well know term but, there is still uncertainty existing about the Patent system. Patents is a form of intellectual property (IP) that represent an invention, or it can be considered as one of the intangible assets which grants an exclusive right for exploitation of an invention for a limited period of time**.** There are few misconceptions existing around the patent terminology which is leading to a number of ineffective patents and more precisely, the importance of patents is less known even in academic and industry sectors. Patents are key to innovation which can lead in strategic management of economy. Big corporates are major players in the market who are reaping maximum benefits of the patent's portfolio whereas, small scale entities even though they are striving to drive towards innovation, they are failing to protect their intellectual property in form of patents. Even if they are succeeding in protecting such ideas in form of inventions, still they are unable to benefit to maximum, due to lack of proper management of their IP portfolio.

**Keywords:** Intellectual Property, innovation, intangible assets, Patents, Patent Law, Novelty, inventive step, IP management, non-patentable, scope of protection, Patent Portfolio

### **1. Introduction**

Intellectual Property defines the intangible assets arisen out of one's intellect. There are different forms of intellectual property like Copyright, Trademarks, Trade Dress, Patents, Trade Secrets, Utility Models, Industrial Designs, Geographical Indications, Traditional Knowledge and Cultural Expressions. Among these assets, Patents involves inventions in form of both product and process. Patent is an exclusive property right granted to the inventor (s) by the respective sovereign body for a limited period.

Patents is still an unresolved subject for most of the educational institutions, startups and small, medium scale sectors. There is an unfilled knowledge gap between these sectors where research and innovation are not inclined towards a proper protection which could increase the value of business to these sectors. Even academic institutions can reap the benefits of research and innovation through reformed IPR policies which is a backdrop in the developing countries. Patents is believed to be costly affair but aftermath of filing of patents, which can pave way to profits and value addition to the business can be devised through IP management strategies. A business entity should be open to innovation that involves IPR management.

It is essential for an inventor and the applicant to know the patent terminology and the Patent Law practiced in respective jurisdiction to acquire effective patents which drive towards innovation. This chapter can state the myths and facts and how to fill existing knowledge gap to attain a sustainable innovation.
