Why is 'Patent' the Term of the Day?

U.S. Patent and Trademark Office

It was on this day in 1790 that the first United States patent was issued to Vermont resident Samuel Hopkins for a process of making potash, a potassium-rich salt and one of the ingredients used in a type of agricultural fertilizer. The patent was signed by President George Washington.

The U.S. patent system was created to support intellectual property, which is recognized by Article I, Section 8, of the Constitution. The Patent Act of 1790 established a Patent Board, consisting of the Secretary of State, Secretary of War, and Attorney General, that had the authority to grant or refuse patents. It wasn’t until July 4, 1836, that the modern regulatory agency, the U.S. Patent and Trademark Office, would be formed. Nine days later, the first “numbered” patent was issued. Prior to this, the U.S. government had issued 9,957 unnumbered patents, though the records for most of these were lost following an office fire on Dec. 15, 1836. Since then, over 11 million U.S. patents have been issued as of 2021, and an estimated 374,006 were granted that same year.

Patents offer a bevy of benefits for the companies that hold them. Patent rights can help startups attract financing from investors, secure business partners, and raise their value, all of which can accelerate a business’ growth. Larger companies that hold patent portfolios can signal to investors a higher level of expertise, specialization, and technological capacity. While a large number of patents doesn’t necessarily guarantee a business' success, many of the companies that have the most U.S. patents granted to them each year are also among the biggest tech stocks in the S&P 500, including Apple (AAPL), Amazon (AMZN), and Intel (INTC).

-Ward