When an entrepreneur’s efforts to launch a small business include an invention, seeking patent protection may be in order. This is not always a seamless process, and there has been a disturbing trend of “patent trolls” eager to try to squeeze money out of businesses that want to avoid lengthy and costly litigation. But for small businesses pondering patents, there can be benefits. While there are many good reasons for investing in Intellectual Property (IP) the most important may be that a startup’s true valuation is mostly intangible such as the knowledge possessed by the early team and employees.
However, a bad IP strategy can be just as costly as not having an IP strategy at all. Here are 7 warning signs that you :
- Your patents are driven by the technology and not by creating value.
- Your team identifies clever technical ideas which don’t create any value by solving a meaningful problem.
- You collect ideas and send them to the patent attorney without assessing why they should even be considered for protection.
- Your let your patent attorney draft the patent application based on the technology, but not the business context.
- The commercial leaders accountable for eventually paying for the intellectual property estate are absent from the decision making process.
- You delegate the IP decision-making authority too low in the technical organization.
- Acquiring patents is a form of recognition or used for career advancement.
A well thought out IP strategy is essential for startup’s to have a higher value and mitigate risks for investors.
To learn more about Creating a Competitive Edge with Intellectual Property Strategy visit university.ventureforge.co