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A Perspective on Patents for startups- Part2
Second art of the series on by Dilip of Inolyst,IP consulting and IP monetizing firm.
Understanding Patent Priorities
Keep in mind the following points:
- What to patent
- potential commercial products of company
- methods of making and using the products
- systems utilizing the company’s products
- made by company’s customers
- parts of your product made by vendors
- commercially important inventions
- blocking patents to block competitors
Patent Process
- Identify new and unobvious ideas
- Prepare invention disclosure
- Forward disclosure to patent committee
- Committee decides whether to pursue invention
- Patent drafter prepares first draft of application
- Inventor reviews & revises draft
- Patent drafter sends final draft to inventor
- Inventor provides copies of material prior art to patent attorney
- Inventor signs assignment and declaration
- Assignment signature is notarized
- Patent attorney files application and forms in patent office
- Application is examined by patent office
Points to focus in your Patent Strategy
- Small portfolio of pioneering patents
- Market leadership & advantage
- Licensing
- Deal & merger leverage
- Small to medium size companies
- Reasonable cost
- Market monitoring
- Large portfolio of patents of various scope
- Protect products from copying
- Cause competitor design around
- Reduce risk of patent infringement suit by competitors – mutually assured destruction
- Cross licensing – market entry
- Medium to large size companies
- High cost
Recommendations for startups
General recommendations
- focus on few quality patents regarding key products and technologies in conformance with business objectives
- cost-effective high-quality patent portfolio
- indicator for superior technology and to be expected higher turnover growth rate
- decisive to be funded by venture capitalists
- quantity not relevant
- regular and systematic patent filing to build a strong patent position
- seek fast patent grants (avoid slower PCT-route)
- US venture capitalist usually pass on start-ups with long lasting patent infringement suits
Conclusions
- Patents are of vital importance to the commercial success of techno start-ups
- A patent is a shield for competitors
- A patent gives a strong position to negotiate with investors, an investor provides the conditions for a swift growth
- Licensees
Dilip Kumar | Founder | Inolyst | www.inolyst.com | info@inolyst.com
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