Should Your Startup Invest In Patents?

Patents can be an important tool for startups to protect their intellectual property and gain a competitive advantage in the market. A patent is a government-granted right that gives the patent holder the right to exclude others from making, using, selling, and offering to sell their invention for a certain period of time, typically 20 years from the date of filing.

Here are some of the key reasons why it's important for startups to get patents:

  • To protect the market for the patented invention. A patent gives you the exclusive right to prevent others from capitalizing on your invention. This can prevent competitors from copying your invention and eroding your market share by forcing competitors to develop their own technology that does not infringe your patents.

  • To attract investment. Investors often expect tech-focused startups they might invest in to have an intellectual property strategy that includes patents. This is partly because patents demonstrate that the startup has innovative technology that is worth investing in, and also because it signals the startup is making long-term investments to protect its valuable intellectual property.

  • To generate revenue. Startups can generate revenue from their patents by licensing them to other companies, and possessing patent rights can grant additional protection over purely contractual arrangements. This can be a great way to monetize your intellectual property and generate revenue even if you're not selling your product yourself.

  • To provide legal protection. If someone infringes your patent, you can sue for damages and ask a court for an injunction to prevent them from making, using, or selling your invention. This can be a powerful tool to protect your rights and prevent others from profiting from your invention.

Of course, there are also some costs associated with getting a patent. The application process can be complex and expensive, and it can take several years to get a patent granted. But the benefits of having a patent can far outweigh the costs, especially for startups.

Here are some tips for startups that are considering getting a patent:

  • Start early. The earlier you start thinking about the patent process, the better. It can be advantageous to get your rights on file early for a variety of reasons. For example, you will have an earlier priority date for your invention, and your patents will be able to mature to issuance sooner. If your invention is still in development, filing provisional patent applications can be a great first step.

  • Work with a patent attorney. A patent attorney can help you with the patent application process to make sure that your application is as strong as possible.

If you're a startup founder, patents can be an important first step in building your company, and done correctly, patents can be a valuable tool to protect your intellectual property, gain a competitive advantage, and attract investment. Talk to a patent attorney to learn more.

This post is an advertisement for legal services. It is provided for general information purposes only and may not be relied upon as legal advice. Sean Lynch is a licensed lawyer in California and before the USPTO and is responsible for this content. You can reach Sean at contact at lynchllp.com.

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