5 ms·
I've lived situation. Large co bought one of our systems, as their internally built systems weren't up to the task. We sold it at effectively break even. Thi
by hpcjoe 5y ago
I've lived situation. Large co bought one of our systems, as their internally built systems weren't up to the task. We sold it at effectively break even. This was in part due to my business partner's view that we could turn this into a bigger deal.
Well, no. We couldn't.
The "customer" wanted specifically to see how we did what we did, in order to copy this. It took me a while to figure it out, but I did, and we wound up walking away from it. Partner was angry, but it was absolutely the right business decision to terminate the interaction.
PSA for any small startup firm with real differentiation: BigCo will, absolutely, positively will, try to see if they can replicate your value on their own rather than buy from you. Patents won't stop this. Pretty much nothing will, apart from an architecture and implementation that they don't understand. They will mess with you. Approach with extreme caution, and be prepared to cut bait quickly.
- doctor_eval 5y agoI used to say that our customers were our biggest competitors. You have to execute 10x better and be ½ the price if you want them to buy your product rather than replicate it. Or (better) you have to know something they don’t — and keep it to yourself.
- everybodyknows 5y ago>Patents won't stop this. Can you elaborate? Is this because they'll infringe anyway, then use their big legal budget to game the system?
- devtul 5y agoMy guess is basically yes. Once they copy your small startup features and you go bust, what is really left to do? Spend an inordinate amount of time and money that you might not have chasing some compensation? How feasible is that.
- pyuser583 5y agoSmall companies that go bust have their assets acquired. That includes patents. Corporate parent trolls eat them up and sue. There are publicly traded companies whose sole means of profit is patent law suits.