In today’s fast-paced world, startups have to consider Intellectual Property (IP) right from the minute they start creating their products and services. Even before commercializing their inventions, the protection of the underlying IP can be critical for success.
An important decision to be made is when and whether to patent. Before deciding on a patents strategy, entrepreneurs should first assess the competitive landscape, the value of the underlying invention, and consider the costs of patent protection.
Patent protection can be expensive. It is not unusual for startups to face significant costs in obtaining and maintaining patent protection both domestically and abroad. When an invention is unlikely to be copied, or when the cost of patenting outweighs the cost of potential competitors creating workarounds, it may be foolish to invest in a patent.
On the other hand, when an invention is very valuable, highly proprietary and expected to be imitated, seeking patent protection is likely wiser. Patent protection can provide an effective and significant barrier to entry against competitors, which can be at least as important as the value of the commercial exploitations of the invention.
When evaluating a patents strategy, it is also important to consider other forms of IP protection such as trademarks, copyrights, industrial design, and trade secrets. Each of these forms has its own strengths and risks, and selection of the appropriate form of protection may depend on factors specific to the particular situation.
For example, a startup that relies solely on trade secrets to protect their invention might have difficulty asserting that they own a piece of IP. However, a trademark registration or patent filing may make it clear that a startup owns the rights to particular products or services.
Ultimately, when deciding when (not) to patent your inventions, startup entrepreneurs shouldn’t rush into patenting just to be safe. IP protection should be tailored to the type and value of the underlying invention. A comprehensive, carefully considered patents strategy can significantly enhance the value of a startup’s IP and increase the company’s chance of success.
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