Related:It’s hell when someone seize your idea, isn’t it? Many entrepreneurs believe that getting a patent is some sort of precondition to starting a startup. In some cases, Patents are something that startup totally avoid.
Patenting provides you an ability to dismiss others from using your invention for a limited time-frame. However, patents are costly and time-consuming and thus, startups have to comprehend the trade offer in filling for a patent vs. exploring other types of business protection and IP.
Previously, patent system has gotten the wrong impression, especially among startup business that besieged by patent trolls hoping to extract quick settlements. Another side, it is much important for a startup.
Two Short Answer that tells When Startup Patent is and When Not, Required?
In a startup’s early stages, IP is valueless, so the patent is not required.
But, it would be valuable when a startup matures and becomes an acquisition target, so Patent Is Must.
Wondering why are we saying Patent is Important?
Patents can help a startup to protect itself against unavoidable competitors. Importantly, Patents enable venture capital investments. According to some statistics, 40% of all startups held patents and 80% of those getting venture capital investment owned patents.
Patents are also necessary, as these days, large rivals are grabbing ideas from the startup and thus, startups don’t gain enough advantages from their own ideas. In such case, patents help them to stop the stealing of their innovations.
What’s the ultimate goal of startup? To be Acquired. Correct me if I am wrong. Here, patents play an important role for startup to be acquired.
It is reported that Nest’s use of patents to protect itself against a larger rival. However, the company’s intellectual property was one of the biggest reasons for Google’s acquisition of Nest in 2014 for $3.2 billion in cash.
Do you know NASA offers 1,200+ patents to startups, with no upfront licensing costs?
NASA is providing startups a chance to license its technologies with no up-front costs. Businesses can able to choose from a portfolio over 1200 patents that consist of 15 different categories. NASA’s chief technologist David Miller in a press release:
“The Startup NASA initiative leverages the results of our cutting-edge research and development so entrepreneurs can take that research — and some risks — to create new products and new services”.
Your Business Are Shaped and Secured by Your Thought.
Patent to start a startup is like adding security to your business and thus, careful patenting is necessary – speed, code and everything related to it.
There were more than a dozen search engines before Google was launched, many social networks before Facebook launched, couch-surfing before Airbnb, etc. The perfect example would be of Groupon, that made it to IPO despite many clones like Google Offers or Amazon Deals. It all comes to the proper execution of the startup idea. The sooner you execute, the more likely you are to win.
As we share our understanding of startup patent, similarly a successful startup requires knowledge of the market and research of demand for the product or service offered.
Questions such as: Is the offered service or product demand out there in the market? How can you scale up your product or service? Is any app idea already existing in the market? Startups need to ask themselves these questions.
Startup ideas are always failed miserably if an execution is not done properly. Looking for a partner, who implement your idea into an app to build a successful startup business, Space-O Technologies comes into an existence.
Related: Space-O Technologies as one of the most promising IT service providers for startups – The Economic Times
We have worked with startups, even out of our every ten customers, about six are startups. We would love to share the success story of our recent app FTCash, aims to power mobile payments for micro-merchants. It builds tools for them to accept payments through debit cards, credit cards, and mobile wallets. Recently, FTCash got half million us dollar funding from investors and now they are going to expand their app’s functionality. (See ftcash app portfolio)