Posts by russkrajec

Patent Valuation is a Myth

Patent valuation is really slippery, and completely depends on the context. Patents can be thought of as call options on technology.  They are a time-limited bet that the market will adopt a technology. At the beginning, the patent is an out-of-the-money call option and has only potential value.  Once infringement occurs, the patent turns into…

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Someone will steal my idea if I do not get a patent.

Customer feedback is essential to know if a patent is worth the expense – but some people think their idea will be “stolen” if they talk to customers. What should they do? Two answers: One, if you need to tell people about your invention when doing customer discover, you are doing it wrong. Two, there…

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Why get a patent? I cannot afford to enforce it.

Many entrepreneurs (sometimes with their investor’s approval) skip getting patents.  Many say that they do not have the $2M of dry powder to enforce their patents, so they just do not play the game. Patent enforcement insurance is ridiculously affordable, especially for startup companies.  Enforcement insurance means that you have pre-paid legal fees at your…

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Early and Often? This is not Voting in Chicago.

File patents early and often.  At least the patent attorney will make some money. We look at this advice and poke holes in it.  Every word in a patent hurts you. There is a huge tradeoff when you file patents.  Are you getting a good bargain?  Are you giving away too much and getting too…

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The Myth of Provisional Patent Applications

Startups are routinely told to get a provisional patent application. There is absolutely NO business reason why a startup should EVER do a provisional, and we pick apart every argument.  (The only reason why startups file provisional patent applications is to placate unsophisticated investors.) Provisional Patent Applications are not the ugly stepchild of Non-Provisional Patent…

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