Patent usually refers to an exclusive right granted to anyone who invents any new, useful, and non-obvious process, machine, article of manufacture, or composition of matter, or any new and useful improvement thereof, and claims that right in a formal patent application.

BusinessInsurance.org has published an excellent infographic which explains what is a patent, the application process, pros & cons of it and more interesting facts.

• The first patent in the U.S. was awarded in 1790 to Samuel Hopkins for a method of producing “potash,” which is used to make gunpowder.
• The patent for the telephone, however, is considered to be the most valuable patent ever granted.
• In 2010, the U.S. Patent and Trademark Office has issued 107,792 patents, and the top five organizations that had the most patents approved are all in tech: IBM (5,866); Samsung (4,518); Microsoft (3,086); Canon (2,551); and Panasonic (2,443).
• Although IBM has been the topper in this list for past 17 years, Microsoft leads in terms of value.

Patent were actually made to encourage innovation. However, the current patent wars among the tech giants are preventing innovation as more and more money is spent on patents and related lawsuits instead of research and design.  For more details about the Patent Wars, check out the infographic below via  .