3 ms·

For tech startups, patents are very important for staking out their product space. Those first 3-10 patents can be critical for funding or exits strategies. A

For tech startups, patents are very important for staking out their product space. Those first 3-10 patents can be critical for funding or exits strategies. A company that does not have patents around its core technology or products is worth much less than one that does have patents. If your ideas are not worth patenting (e.g., protecting) why should your investors keeping putting money in?

gowld 8y ago
That's voodoo perpetuated by VCs, not real value. 99% of granted patents wouldn't hold up in court. Look at the garbage patents Dropbox has, and and the fact that they haven't used those patents to sue competitors out of existence or licensing fees. https://patents.justia.com/assignee/dropbox-inc https://patents.justia.com/assignee/dropbox-inc https://patents.justia.com/patent/8855605 https://patents.justia.com/patent/8855605 including "logging into your account from your phone" https://patents.justia.com/assignee/dropbox-inc https://patents.justia.com/assignee/dropbox-inc
- dahauns 8y ago
  >That's voodoo perpetuated by VCs, not real value. 99% of granted patents wouldn't hold up in court. The crazy thing is - the voodoo works: They don't even have to hold up! The threat of litigation itself and/or the patents being a bargaining chip in such litigations are enough. I mean, look at the 1-click example: It doesn't matter that many of their claims were deemed invalid years later, the damage (direct: expensive lawsuit, preliminary injunction, settlement; indirect: chilling effect) has been done.