Start-ups, Patents and Intellectual Property

All too often, start-ups become enamored with obtaining patents and protecting their property . This stems from investors stressing the creation of assets and company value. It’s rare to seek out a technology start-up that’s not quick to say their property portfolio. Start-ups should stop and consider whether it’s really applicable to their company and if so, once they should consider such a technique .

Patents prevent competition and therefore the unauthorized use of their technology. But not everything is patentable or should be patented either. Unless a start-up is well funded, it isn’t likely to spend the massive funds needed for patent filing in india. the entire cost of a patent are often $25,000 to $30,000. Patents are only worth the maximum amount as one’s willingness to enforce them, which can be too costly for Alittle Company and may end in a really lengthy and time consuming legal battle. There are law firms that concentrate on buying the property of failed start-ups and appearance for companies to litigate against for infringement.

The legal departments of companies often get phone calls from inventors claiming that they ought to pay them for using their property . In fact, many corporate lawyers will say they often get several people or organizations staking an equivalent claim. Theycan not all are the primary ones to create something? Companies aren’t getting to pay without a fight. If they paid off everyone who knocked on their door with a claim, they might soon erode away all their profits. Even paying one or two claimants could put them at a competitive disadvantage within the market.

Patents work best if the start-up’s technology are some things which will be incorporated into the larger company’s shippable product; the planning of a car’s intermittent windscreen wiper may be a famous example. Infringement must be easy to demonstrate. If you’ve got to reverse engineer and obtain into the center of another company’s design for proof of infringement, it isn’t something a start-up should patent. If the technology is software to enhance operating efficiency then many companies could also be ready to whomp up something similar for his or her own internal use. Start-ups have limited resources and will consider whether the trade-off between filing patents and directing more funding to development and marketing is worthwhile .

Some start-ups file patents for the sake of building a portfolio. Recently, a computer security software start-up was filing patents on AI for the creation of the primary true robotic imitation of a person’s being. When quizzed on the rationale , they responded with someone will build one someday and that they wanted to possess the patents. It wasn’t on the corporate roadmap. It wasn’t adding value to the start-up. The CEO was looking to step down and my suspicion was he thought the more patents attached to him, the greater his value within the job market.

Entrepreneurs wish to brag to investors about their patents. During their due diligence or evaluation process, investors will get a topic matter expert of their own to weigh in on the technology value of the corporate based upon the patent filings. Using patents as a way of attracting investors are often either positive or negative because the precise details are exposed and simply analyzed.