Used strategically, patents can discourage piracy via:

• Injunctions
  • e.g., shutting down competitor's research, production, marketing, web site, etc.
  • e.g., seizing and destroying imported knock-offs

• Damages
  • At least a reasonable royalty
  • Possibly the patent owner's lost profits
  • Possibly treble damages for willful infringement

• Costs & Attorneys Fees (in exceptional cases)

For those who do not have the financial means to enforce a patent, insurance can be purchased that will provide the financial muscle to litigate. One provider of patent enforcement insurance is Intellectual Property Insurance Services. A listing of other insurers can be found here.