Starting a new company involves approvals, licensing and many other legal documentations and formalities. It is a daunting task. However, a big number of startups do not survive for more than 3 to 5 years. The majority of the startups focus on developing a great product on which big segment of audience loves to invest. Well, this is the right thing to do. However, not all of them give much thought to the protection of their intellectual property rights. They need to protect their business from patent trolls.
The startups show reluctance to perusing patents because they have limited funds. However, it is important to incorporate the possibility of patent troll into their risk mitigation. Having intellectual property rights increases the confidence of investors. Here is why startups must have a patent strategy.
Apart from protecting from patent trolls, being proactive about patents can give the startup a competitive advantage. Having patent strategy is good for the reputation of the company and it can also help in funding. This also helps in partnerships and joint ventures. It also motivates investors to invest in your business. A strong patent strategy provides a sense of security to investors.
Apart from obtaining a patent, having a patent insurance policy also gives an edge to startups. Therefore, startups should consider strong patent strategy as mandatory. And, patent insurance plays a role in safeguarding your IP rights.
The startups show reluctance to perusing patents because they have limited funds. However, it is important to incorporate the possibility of patent troll into their risk mitigation. Having intellectual property rights increases the confidence of investors. Here is why startups must have a patent strategy.
Grow Value and Reduce Litigation Exposure
Every company, be it a startup, small, medium scale of large, has some innovation and that innovation is required to be protected. Patent litigation is a real threat. Therefore, startups should start thinking about patent troll litigation as early as possible. If you are growing at a pace that can upset someone then patent litigation can be used as a weapon to decelerate your growth. Startups and small companies lack expertise and have limited resources. This makes them an easy target. And, the bad news is propagated more quickly. Patent trolls or non-practicing entities know that the company is not in a position to protect its intellectual property rights. 60% of the patent trolls target companies having revenue less than $100million.
Apart from protecting from patent trolls, being proactive about patents can give the startup a competitive advantage. Having patent strategy is good for the reputation of the company and it can also help in funding. This also helps in partnerships and joint ventures. It also motivates investors to invest in your business. A strong patent strategy provides a sense of security to investors.
For Software and Tech Startups
These companies focus on the content delivery. These are the companies making most rapid innovation. Therefore, software and tech companies are more prone to this problem. However, tech startups often ignore the future risk mitigation. And, they start considering the future risk mitigation when they start facing problems like patent litigation.
Apart from obtaining a patent, having a patent insurance policy also gives an edge to startups. Therefore, startups should consider strong patent strategy as mandatory. And, patent insurance plays a role in safeguarding your IP rights.
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