Unformatted text preview: Patents provide exclusive rights to produce or sell new inventions. When a patent is purchased from another company, the cost of the patent is the purchase price. If a company invents a new product and receives a patent for it, the cost includes only registration, documentation, and legal fees associated with acquiring the patent and defending it against unlawful use by other companies. Research and development costs , which are spent to improve existing products or create new ones, are never included in the cost of a patent; such costs are recorded as operating expenses when they are incurred because of the uncertainty surrounding the benefits they will provide....
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- Fall '10
- Intangible Assets, Intangible asset