During 2010, a company spent $239,000 in research and development costs that resulted in a new product introduced to the market in time for Christmas. In addition, the following costs were incurred in the filing of the patent for the new product:
- Attorney fees: $5,000
- Patent office filing fee: $520
- Internal company costs preparing the patent documents: $8,600
The patent was expected to have a useful life of 8 years.In 2011, the company successfully defended a patent infringement lawsuit at a total cost of $15,000.In 2012, the company determined that other products introduced into the market reduced the useful life of the patent and estimated that the patent would become worthless by the end of 2014.