Startups must have something that other businesses don’t. Otherwise, they’d never transform into fully-fledged enterprises with their own identities. But what is it that startups have that’s so valuable? For sure it’s not their startup capital. Most of the time, if it exists at all, it’s spent on a disused office and a few supplies. And it’s not the prototypes themselves either. Often their clunky and miles away from market readiness.
No, the most valuable asset that startups have is their ideas. Unfortunately, those ideas can be stolen. And if they are, the value of your startup could vanish entirely. So what can you do to protect yourself against IP theft?
Gain Knowledge Of The IP Rules Of Your Industry
Starting down the road to acquiring IP rights for a particular idea is tough. Making sure other companies pay when they use your ideas requires a legal case to be made. And companies attempting to file for patents can face lawyer fees anywhere between $7,000 and $15,000. The process itself can take up to six years or more to complete, by which time your product might be out of date.
FlickrIt’s important, therefore, to understand exactly how the patent process works in your industry. Products in the communications and biotech industries tend to stay on the market for a long time. That means that companies in these areas need a strong IP right from the start. Other businesses in faster-changing sectors might not need IP from the very beginning. For instance, retail and manufacturing methods tend to change every year to 18 months. These types of businesses probably won’t be served by the slow government patenting system. Their best tactic might be just to keep trade secrets.
Make It More Profitable
It might sound counterintuitive to say that the more profitable a patent, the easier it is to protect. But remember, a lucrative patent is likely to attract more legitimate backing than one that’s ten years ahead of its time. Some startups go to third party companies, like World Patent Marketing, to help them bring their products to market. Recently, there were a series of World Patent Marketing complaints. It was alleged that the company was picking and choosing which products to support. But the CEO insisted that the decisions were based purely on profitability. The more profitable the invention, the more likely it was to receive additional investment. Many entrepreneurs were unwilling to accept this. But the bottom line is that IP is only likely to find support if companies believe that it will make a significant return. In other words, the more people who are invested in the success of an IP, the more likely it is to stay safe.
Do Patent Filing Yourself
As discussed, it can be expensive to get somebody to file for IP on your behalf. You could wind up paying thousands of dollars in fees. For many startups, this is just too expensive. Startups in this position should still consider filing, especially if a patent is central to the success of their business. Filing by yourself isn’t easy. Estimates suggest it’ll require 150 hours of your time. But at least you can file without dipping into your precious seed capital.
