How to Craft a Patent Strategy – Software Startups

Importance of intellectual property when launching a new software innovation

Well, it depends on the type of innovation and the product. For example, there is a mobile game that has a character from a new movie. For a few months, that game can take a hit, but after that it can sometimes be expected to fade away quickly. Therefore, inventions based on movement or actions of a specific nature may not be valid even if they are possible to patent.

For other products, the patent plays an important role. In the 1980’s SPC (Software Publishing Company) had the leading presentation software called ‘Harvard Graphics’. Harvard Graphics is very popular for conferences and presentations. Especially for people doing business, this software was the standard for lectures and conference room presentations. It costs about a hundred dollars on floppy disks. Although there were many other presentation software programs at the time, Harvard Graphics was the market leader.

After that, Microsoft developed a similar program that was not as good at the time as Harvard Graphics. It is now known as a power point. However, Microsoft bundled its word processor and spreadsheet programs along with the PowerPoint point. This package turned out to be a Microsoft office. And it’s about the same price as a Harvard Graphics copy. Microsoft finally killed Harvard Graphics. Not only that software but also SPC and many other companies. At that point, competing directly against Microsoft had become nearly impossible.

After that, the courts recognized software patents as permitted subject matter. In the late 1990s, software companies like Adobe, Autodesk, and Intuit were able to protect their innovations with patents, and they began to grow and flourish.

The protection of software intellectual property has played a crucial role. It leads to the growth of competition in the field in the last two decades.

Development of software-related innovation

Startups or companies developing software-related innovation must answer these questions if they want to create strong intellectual property protection:

• Why do people buy your product or service?
• What is it about the particular product that is driving customers to write a check?

Well, it’s not about the technology, it’s about a unique experience that the buyer gets when using your product.

The right way to think about getting patent protection for software

Software is something real, useful and important. Don’t think of it just as software. Well, customers are looking for more innovative things that solve their problems.

The purpose of the patent system is to promote and protect the invention. Any invention that is new, useful and non-obvious is patentable, except for the secrets of nuclear weapons, the laws of nature, etc.

Startups budget for their intellectual property portfolios

The need for an intellectual property depends on the nature of the startup. A Detroit pizzeria opening may decide to trademark their name and leave it at that. On the other hand, a VC-funded tech startup needs a portfolio of monopoly patents right away to protect its market from competition.

So consider them:-

• Have a vision of where the company is going.
• What objectives would be achieved by investing in intellectual property protections?
• When cash is tight as it is with most startups early on
• Have a roadmap to focus investment solely on IP.

Conclusion

Non-strategic investment is just wasted money. The most valuable IP tool for any startup or for any company is an IP roadmap. Two of the many great benefits of being a startup which are:

1. there is a total absence of historical baggage

2. The possibilities for unimaginable success are endless.

But no one will start a journey without having a clear designation or road map in mind. Similarly, if a company’s IP ‘strategy’ is simply to collect patents at random, then all the company will have is a box full of patents at random.

If you want to build a true monopoly and want to protect the unique experience that keeps customers engaged, then it is essential to start with an IP monopoly roadmap of where you are going and how you can get there.