Patents play a major role in getting funds for startups, especially the tech ventures. Venture capitalists evidently favour tech startups with patent-pending innovation. Patents increase the prospect and quality of merger, purchase or sale of a corporation or an initial public offering. This incentivizes investors to fund start-ups opting for patents. Moreover, patent portfolios are used as defensive strategies to discourage patent infringement claims.
While Applying for a Patent, Mull Over the Hazards
When deciding on applying for a patent, take a look at your invention and mull over the risks of not patenting it against the costs of doing so. The best approach is to appraise alternatives for IP protection before publicly disclosing the idea (e.g., pitch competitions, crowdfunding campaigns, launches, trade shows, etc.). Find a startup patent lawyer who understands your state of affairs and is ready to assist you in developing a patent strategy that takes care of your funding and acquisition goals.
Today, we have organisations and individuals who understand the hurdles faced by the startup sand have initiated many customized solutions,largely reducing the cost for filing of the patent. They help the startups right from doing initial research till filing of the product patent.
Some advantages of filing the patent at early stage-
Bolster Investor support- Venture Capitalists favour big investments in start-ups which have already filed the patents. These give them the confidence that the innovation has got real value and potential.
Early filing protects the date of first to file for any start-ups. As we know, publicising your invention at any time before filing a patent application could put your intellectual property rights in jeopardy.
Product Development boost- Getting a grant on patents gives a boost to create the product at a much-accelerated pace.Nowadays startups aim for the global market. So, how quickly you go to the market is very important. Startups need to be aggressive in their market outreach plan and this can be facilitated by protecting their patents.
Minimize competition – Getting a patent grant at an early stage helps the start-ups to stand tall among the many players. It also dithers others to do what you are doing as the sword of infringement hang if you have a granted patent.
Make Costs and Marketing Considerations:
Patents are regional and you will succeed in stopping competition only in the country in which you file and hold a patent. If your innovation has market potential abroad, it will be necessary to budget for the cost of applying for a patent in your target countries.