Acknowledging the fact that there are several factors and ingredients involved in setting up a start-up venture, one prominent fact is that the key element in any start-up is the entrepreneur’s Intellectual Property(IP). The IP is the key initiator for entrepreneur’s access to financing and technology acknowledgment, which are instrumental in providing adequate thrust to start the venture. On the contrary some business strategists hold an opinion that start-ups should make an early entry into the markets focusing upon addressing new market segments rather than entangling themselves into the patent filings and procedures. Well, from my point of view, I certainly don’t buy that argument. All technology based start-ups have one thing in common that is ” The new technology” itself. What’s the idea behind spending huge bucks in creating, distributing brands and targeting new customer bases when your technology itself stands unsecured from IP point of view.
How would an entrepreneur deal with the consequences of infringements and technology thefts in the ever-growing competitive global market? The only way to ensure the protection of your technology is by securing a “Patent right” on that. As early as an entrepreneur comes up with an idea to design a start-up around a new technology, the next immediate step should be to file a provisional patent application followed by the complete specification later. Understand the utmost need of filing a patent application and securing an early priority date nationally or internationally because it might be possible that many other ventures might be working on similar technology and will be in the race of filing the patents themselves. Looking at the stiff global competition, entrepreneurs and inventors should aim for an early patent priority date to be in a profitable situation.
From a business point of view, an early-stage entrepreneur with an established patent portfolio will undoubtedly draw prominent attention for financing from investors. Looking at the vast number of opportunities that an entrepreneur enjoys after attaining IP rights on their respective technologies or inventions, I wouldn’t mind spending extra time to patent my technology.
Start-up entrepreneurs can monetize heavily through their IP in the following forms:
- Licensing their technologies with established companies
- Creating licensing Partnerships
- Selling their IP
- Reaping the benefits from royalties
- Damages awarded by infringements
- Using the IP itself.
Thus, the right amount of money starts flowing in the venture, just by the value of your intangible assets like IP. Therefore, the next time you think of launching your start-up, give a comprehensive thought to the benefits of Intellectual Property which could boost your venture.
This article is an entry from my blog “Spectrum of Intellectual Property Rights“. For global IPR updates and discussions refer to my blog and keep yourself updated. http://spectrumofintellectualpropertyrights.blogspot.com/
Article Source: Start-Ups and the Role of Intellectual Property
A Real Estate and Financial Accounting graduate from Georgia State University’s J. Mack Robinson College of Business, with a proven track record of success in all aspects of business management, including accounting, operations, sales, marketing, recruiting, training, budgeting, and project management.