{"ok":true,"canonical_url":"https://dealroom.so/glossary/patent","api_url":"https://dealroom.so/api/public/glossary/patent","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"patent","term":"Patent","group":"Reading the business","definition":"This is a government-granted right to an inventor to exclude others from making, using, or selling an invention for a set period. For a buyer, patents can provide a significant competitive moat and protect proprietary technology.","what_it_means":"If the business relies on patented technology, due diligence must confirm the patent's validity, remaining term, and clear ownership transfer. Patents are valuable intellectual property that can justify a higher business valuation, but their legal enforceability is key.","url":"https://dealroom.so/glossary/patent","official_sources":[],"related":[{"slug":"intellectual-property","term":"Intellectual property","url":"https://dealroom.so/glossary/intellectual-property"},{"slug":"trademark","term":"Trademark","url":"https://dealroom.so/glossary/trademark"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"intangible-asset","term":"Intangible asset","url":"https://dealroom.so/glossary/intangible-asset"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to purchase intellectual property, like a patent or trademark?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-intellectual-property-like-a-patent-or-trademark"},{"question":"What documentation is required to perfect a lien on intellectual property, such as a patent or trademark, as collateral?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-perfect-a-lien-on-intellectual-property-such-as-a-patent"},{"question":"Can an SBA 7(a) loan be used to purchase a patent or other intellectual property as a primary asset?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-patent-or-other-intellectual-property-as-a-prima"},{"question":"Can an SBA 7(a) loan finance the purchase of intellectual property, like a patent portfolio, as a primary asset?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-intellectual-property-like-a-patent-portfolio-"},{"question":"Can a buyer's intellectual property, like a patent or software, be included as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-s-intellectual-property-like-a-patent-or-software-be-included-as-collateral-fo"},{"question":"If I want to contribute intellectual property like a patent as part of my equity injection, how is its value determined?","url":"https://dealroom.so/sba-7a/questions/if-i-want-to-contribute-intellectual-property-like-a-patent-as-part-of-my-equity-injection"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Patent","url":"https://dealroom.so/glossary/patent","source_type":"DealRoom Data"}}