An Executive Voices Blog by Simran Bhatia, Brand Licensing Technologist at Isaac Morris Ltd

After a product hits shelves, licensing conversations follow and partnerships take place. And while most brand owners develop strategies for competing products or a pricing shift, few are prepared for a challenge aimed at the foundation of the product itself—one that questions whether the underlying innovation should have been protected in the first place.

That moment reflects a broader shift in how innovation is protected and tested today, much of it driven by the America Invents Act. Enacted in 2011 and implemented in 2013, the AIA fundamentally changed the U.S. patent system in ways that continue to shape how companies approach strategy, timing, and risk.

Before the AIA, the United States operated under a first-to-invent system, which allowed companies to rely, at least in part, on when an idea was conceived. That framework offered a degree of flexibility. The AIA replaced that with a first-inventor-to-file system, where priority is determined by who files a patent application first, with only a limited grace period for an inventor’s own public disclosures under rules set by the United States Patent and Trademark Office (USPTO). In practice, that shift has made speed far more important. When multiple companies are working toward similar solutions, the one that moves first to file is often the one that shapes what happens next.

That change has reshaped behavior. Filing is no longer treated as a final legal step once a product is ready—it is now part of the early commercial strategy. Companies routinely file provisional applications to secure an early priority date while products are still being developed, tested, or refined. By the time a product reaches the stage where it can be licensed or scaled, the most important decisions about protecting it may already have been made.

Just as important, the AIA changed what happens after a patent is granted. A patent used to feel like a finish line, but today it is better understood as the beginning of a new phase. The law introduced new procedures, including Inter Partes Review and Post-Grant Review, which allow third parties to challenge a patent’s validity based on prior art and other statutory requirements—often at the very moment a product begins to generate real value.

The practical result is that patents are more likely to be tested, particularly when they matter most. As products succeed, gain visibility, and become central to licensing programs, they naturally attract scrutiny. A patent tied to a successful product is no longer just an asset; it can become a target.

For licensing professionals, this shifts how value needs to be assessed. It is no longer enough to confirm that a patent exists. The more important question is whether it is strong enough to withstand challenge. That distinction plays out in real terms, influencing deal structure, partner confidence, and the ability to expand into new markets or categories. A strong patent can support growth and negotiation leverage, while a weak one can introduce uncertainty at every stage.

As a result, the focus has moved away from volume and toward quality. The most effective patent portfolios are not necessarily the largest, but the ones built with intention. They are aligned with how the product actually works, supported by clear and thorough descriptions, and drafted with the expectation that they may be tested in an adversarial setting.

For licensing professionals, that means preparing patents with challenge in mind from the outset—through thorough prior art review, carefully structured claims, and portfolios that can adapt as the market evolves.

This environment is becoming even more demanding as technology accelerates the pace of innovation. Artificial intelligence, in particular, makes it easier to develop new products quickly but also makes it easier to uncover prior art that can be used to challenge existing patents. More ideas are moving into the market faster and more patents are being filed as a result. At the same time, fewer patents are able to hold lasting value without careful planning.

The AIA did not simply modernize patent law. It changed how innovation competes and how quickly businesses must act to secure and defend their position. For those working in licensing, patents can no longer be treated as background protections. They are active business assets that influence how products scale, how deals are structured, and how confidently a company can move forward.

In a market defined by speed, visibility, and competition, the difference between a promising idea and a durable commercial asset often comes down to two things: whether protection was secured early enough, and whether it is strong enough to hold when it matters most.

Simran S Bhatia is a Brand Licensing Technologist at a leading apparel and accessories company. She is a forward-thinking brand strategist who blends AI, licensing, and market insights to drive innovation. Working closely with cross-functional teams, she builds smart tools that simplify workflows and support better decision-making. Her focus includes optimizing brand partnerships, leading data-driven negotiations, strengthening licensor relationships, and tracking consumer and cultural trends to uncover new opportunities and keep brands ahead of the curve.