Monday, April 29 2024   \  Published by CARPMAELS & RANSFORD LLP.

Patent portfolio building for startups

Patent portfolio building for startups

In our previous article on IP and startup financing, we looked at the value that registered IP rights can bring to a startup. In this article, we will explore the best strategies startups and growth companies can put in place to help build out their patent portfolio.

Generating and building value through a patent portfolio

Startups’ intellectual assets typically greatly outweigh their physical assets. Investing early in securing registered rights can send an important signal to potential investors of otherwise unobservable value in a startup, and in particular patents can be important IP rights to obtain for technology-led startups.

Depending on a startup’s business strategy, there are many other reasons why it might look to secure patent rights, including:

- The monopoly conferred by patents can reduce competitive pressures (improving the profitability of the startup and securing higher returns for investors).

- Having one’s own patents can be a defensive deterrent against patent lawsuits being filed by competitors.

- Patent filings can be effective indicators of the technical capabilities of a company and their employees. Patents will survive as assets in the event of a bankruptcy, providing security for both investors and lenders.

- Licensing patents can provide an income stream.

- Patent rights can help enable startups to enter joint research ventures with larger firms, accelerating their own research and development. Read more

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