An exclusive right, given to a person or company by the U.S. government, that lets the person or company “exclude others from making, using, offering for sale, or selling” a particular product or a specific process in the United States or importing the product or process into the United States. The U.S. Patent and Trademark Office grants a patent for a period of 17 years. Patent holders may apply for a renewal of their patent in certain cases. There are three types of patents: A utility patent may be granted to anyone who invents or discovers any new and useful process, machine, or article of manufacture, or creates any new useful improvement. A design patent is given for a new, original, and ornamental design for an article of manufacture. A plant patent may be granted to anyone who invents or discovers and reproduces any distinct and new variety of plants.

Accounting regulations call for the value of a patent to be amortized over its useful life, which may be less than the legal life of 17 years. If a patent has to be defended in court in a patent infringement suit, it is added to the acquisition cost of the patent.