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Should We File a Patent? The Pros and Cons for a Small Software Startup
- loceng 14y agoGreat writeup and comparison of both sides. Two issues stick out to me: Time availability, and the requirement of money, to allow you to continue developing. So, the question is prioritizing. What's more important - developing product to reach proof of concept and/or incoming revenues (which could be part of proof of concept)? Really though, is what's important keeping moving forward at the fastest pace possible, or is it long-term sustainability? If a patent (an asset) will help you secure funding, then the point of needing to spend time raising funds is one in the same of working on a patent; Investors will know that filing doesn't guarantee its value, plus, you'll need money to defend it in the future - and meaning it has to be worthwhile defending. And I think I already touched on the value of time the patent takes. It's deciding where it's best put to use. P.S. You should always think about 'being acquired' - or rather, about being a sustainable long-term business. If a big company decides they like what you're doing and they can easily copy it, for whatever reason, then in 2-3 years you may have a mammoth competitor who can pump millions into advertising. Sure, this might be a "competition exists" proof point - though that's a pretty risky proposition for investors and therefore they will want to take a bigger piece of equity.
- finkin1 14y agoYou make some excellent points. Thanks for sharing your thoughts. We've yet to determine how important a patent is to our potential investors. We'll know more shortly.