5 Myths About Patents That Are Holding Entrepreneurs Again

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 take a look at who’s getting funded and who’s getting acquired, a distinct image begins to emerge. An EPO–EUIPO study discovered that startups with patents are 10 occasions as prone to increase 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 Big Idea Is Worth Protecting — That’s Why You Need to Patent Your Invention

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

I hear this one continuously: “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 offered 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 Facebook, an organization with tens of hundreds of patents and a deep IP technique. Most startups don’t function in that surroundings.

So right here’s my recommendation: Scan your ecosystem. What are the intense gamers doing, those you need to compete with or be acquired by? Likelihood is, they’re filing. So must you — no less than hedge your bets.

Many progressive startups are doing the identical. Take Solenic Medical. They filed early, and it helped them raise $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: If you happen to present your tech earlier than you file, you may lose the proper to protect it. Utterly.

You don’t need to 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 system at a commerce present, then filed. The court docket 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 risk 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 palms and given to the general public area in lots of circumstances.

Associated: 4 Surprising Patent Myths That Could Cost You Big — What You Need to Know Now

False impression #3: Not each thought is patentable

Founders typically 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 sensible enhancements that resolve issues higher than earlier than. Inventors are sometimes too humble to understand the patentability, in order that they search an expert opinion.

Let me provide you with an instance. Edison didn’t invent the primary gentle bulb. Others constructed variations, however they didn’t final. Edison examined hundreds 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 all of a sudden the product has actual IP value 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 may be patentable.

False impression #4: Patents are too costly for startups

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

In considered one of my earlier articles, I outlined how startups can manage IP costs strategically from day one.

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

The fee isn’t the issue. Poor planning is. If 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 helpful if you wish to litigate is a standard disconnect with what subtle enterprises know. Litigation is only one use and sometimes the least related for early-stage corporations.

Take Tesla. In its early days, it filed key patents round its battery programs and charging tech. However when it opened those patents in 2014, it wasn’t abandoning IP. It was utilizing it to guide the market. These early filings signaled technical management, attracted funding and helped set up Tesla’s ecosystem. Even to litigate these patents towards a competitor 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 finances and different assets?

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

Associated: What Most People Get Wrong About Inventions, According to a Leading Patent Lawyer

A strategic IP roadmap for any startup to succeed

After 20 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 means of the cracks: Seize improvements enterprise-wide. Product, engineering and help groups typically 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 thought is worth protecting. Concentrate on improvements tied to income, defensibility or investor curiosity. Use lawyer enter early to border what’s protectable, rising the chance of success.

• File strategically to save lots of value and create leverage: File provisional applications to safe early dates. Leverage authorities price reductions and defer international spend by means 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 utility 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 strategy must be simply as nimble.

The founders who deal with patents not as paperwork however as enterprise infrastructure are those who increase 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 take a look at who’s getting funded and who’s getting acquired, a distinct image begins to emerge. An EPO–EUIPO study discovered that startups with patents are 10 occasions as prone to increase early-stage funding.