5 Myths About Patents That Are Holding Entrepreneurs Ba…

I discuss to founders each week who inform me patents aren’t their precedence now. They’re targeted on constructing merchandise, delivery them to clients and pitching buyers. Many assume IP safety can wait.

However for those who have a look at who’s getting funded and who’s getting acquired, a special image begins to emerge. An EPO–EUIPO research discovered that startups with patents are 10 occasions as more likely to elevate early-stage funding.

On this piece, I’ll unpack the commonest misconceptions I hear from founders round patents. Later, I’ll share how getting your technique proper early can unlock capital, safety and leverage when it issues most to your startup.

So let’s begin with the myths.

Associated: Your Huge Concept Is Price Defending — That’s Why You Must Patent Your Invention

False impression #1: We don’t want patents to succeed

I hear this one consistently: “Patents aren’t actually obligatory to construct a profitable firm.”

And sure, you’ll discover loads of tales and a handful of excessive‑profile outliers. One is WhatsApp, with just a few patents, and it’s nonetheless bought for billions.

However that’s the exception, not the rule.

WhatsApp scaled quickly in a slender window when the messaging infrastructure was evolving. Later acquired by Fb, an organization with tens of 1000’s of patents and a deep IP technique. Most startups don’t function in that atmosphere.

So right here’s my recommendation: Scan your ecosystem. What are the intense gamers doing, those you wish to compete with or be acquired by? Likelihood is, they’re submitting. So do you have to — not less than hedge your bets.

Many revolutionary startups are doing the identical. Take Solenic Medical. They filed early, and it helped them elevate $5.1 million. That’s not luck. That’s leverage.

False impression #2: We’ll file a patent as soon as the product is prepared

Founders inform me this on a regular basis: “We’ll type out patents as soon as the product’s prepared.“

And I get it, you’re targeted on pitching, constructing, attending to market, and so forth. However right here’s the issue: In the event you present your tech earlier than you file, you would possibly lose the appropriate to guard it. Fully.

You don’t should take my phrase for it. Courts have dominated this repeatedly. In Netscape v. Konrad, the inventor demoed too early — patent gone. Minerva Surgical confirmed their machine at a commerce present, then filed. The courtroom tossed it.

This didn’t occur as a result of these concepts weren’t sturdy. However as a result of they waited, their very own advertising effort spoiled any chance of safety.

That’s how patent legislation works. You don’t get a second probability.

So file early, even a fast provisional will work. It’s low-cost, locks in your date and retains your choices open.

As a result of as soon as it’s public, it’s out of your arms and given to the general public area in lots of instances.

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False impression #3: Not each concept is patentable

Founders usually assume their innovation isn’t “groundbreaking” sufficient. They are saying: “We’re not inventing something new, simply bettering one thing that already exists.”

I hear this on a regular basis. However most patents aren’t for game-changing innovations. They’re for good enhancements that remedy issues higher than earlier than. Inventors are sometimes too humble to understand the patentability, so that they search knowledgeable opinion.

Let me provide you with an instance. Edison didn’t invent the primary mild bulb. Others constructed variations, however they didn’t final. Edison examined 1000’s of supplies earlier than discovering carbonized bamboo. That made the bulb final lengthy sufficient to exchange oil lamps. It labored as an incremental development, and it was a patentable roadblock that justified commercialization.

I’ve seen the identical sample with startups. One change in design, one higher methodology, and out of the blue the product has actual IP worth for an incremental function that each competitor might want to add to their different to stay aggressive.

So don’t underestimate your work. If it’s new, helpful and solves an issue, it is perhaps patentable.

False impression #4: Patents are too costly for startups

Founders usually assume patents are unaffordable. They’re just for massive corporations with deep pockets. However that’s a misunderstanding of how patent prices really work.

In one in all my earlier articles, I outlined how startups can handle IP prices strategically from day one.

Sure, a U.S. patent may cost as much as $50,000 over its lifetime. However good groups use provisionals to delay prices, restrict filings to high-value concepts and plan forward.

The price isn’t the issue. Poor planning is. Whenever you deal with IP like a enterprise asset, it turns into reasonably priced and highly effective.

False impression #5: Why patent if I don’t plan to litigate?

Pondering that patents are solely beneficial if you wish to litigate is a typical disconnect with what refined enterprises know. Litigation is only one use and infrequently the least related for early-stage corporations.

Take Tesla. In its early days, it filed key patents round its battery methods and charging tech. However when it opened these patents in 2014, it wasn’t abandoning IP. It was utilizing it to steer the market. These early filings signaled technical management, attracted funding and helped set up Tesla’s ecosystem. Even to litigate these patents in opposition to a competitor just lately.

That’s the true energy of IP: signaling energy, constructing belief and opening doorways.

So how do you construct that sort of basis from day one with out hurting your price range and different assets?

Right here’s a roadmap I’ve seen work for startups.

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A strategic IP roadmap for any startup to succeed

After twenty years advising startups on constructing IP portfolios that appeal to funding and strengthen exit worth, right here’s what I like to recommend:

• Don’t let concepts slip by way of the cracks: Seize improvements enterprise-wide. Product, engineering and assist groups usually floor technical options. Arrange a easy system the place any group can submit concepts simply, with out friction.

• Filter and file solely high-quality patent concepts: Not each concept is price defending. Deal with improvements tied to income, defensibility or investor curiosity. Use lawyer enter early to border what’s protectable, growing the chance of success.

• File strategically to avoid wasting value and create leverage: File provisional purposes to safe early dates. Leverage authorities price reductions and defer world spend by way of the PCT. File the place IP provides actual enterprise worth.

• Align IP with enterprise milestones: Time filings round fundraising, product launches and partnerships. A well-timed software strengthens your pitch or valuation.

• Revisit and refine quarterly: Your product evolves, so ought to your IP. Realign filings to what nonetheless drives enterprise worth.

Startups transfer quick. However your IP technique ought to be simply as nimble.

The founders who deal with patents not as paperwork however as enterprise infrastructure are those who elevate stronger rounds, construct extra defensible corporations and exit on their very own phrases.

I discuss to founders each week who inform me patents aren’t their precedence now. They’re targeted on constructing merchandise, delivery them to clients and pitching buyers. Many assume IP safety can wait.

However for those who have a look at who’s getting funded and who’s getting acquired, a special image begins to emerge. An EPO–EUIPO research discovered that startups with patents are 10 occasions as more likely to elevate early-stage funding.