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Patents

14 August, 2015 - 17:32

A patent grants a company an exclusive legal privilege to produce and sell a product or use a process for a specified period. This period varies depending on the nature of the product or process patented, and on the legislation in effect. Modifications to the original product or process can result in a new patent being granted, in effect extending the life of the original patent.

Patents are recorded at cost. If purchased from an inventor, the patent’s cost is easily identified. If developed internally, the patent’s capitalized costs include all expenditures incurred in the development of the product or process, including salaries and benefits of staff involved.