This is a guest post by Peter Benei from KissPatent.
For businesses, especially startup businesses, innovation is the “watchword.” Not only do patents keep your ideas safe from other users for a considerable period of time, but patents are also valuable assets for companies. As a company owner, you need to determine the value of your patents. They have a value that can be pitched to investors as part of the wealth of the company.
A patent increases your credibility
By having patents on your company resume, you are telling consumers that you are an innovative and creative company. A patent is the traditional industrial/scientific embodiment of big leagues, of true participation. A patent for a business is like a publication for a writer. Companies with patents are real players, and perceived so by potential customers who look for companies with authority that can give them something out of the ordinary. Consumers want to interact with companies that are the best in their respective industries—by obtaining a patent, you are showing consumers that you do, in fact, have a substantial stake in your industry.
A patent secures your most precious idea
Your competitors, especially the big ones, have no interest in playing “nice” with your startup or even playing fair. If they can steal — ahem, “borrow ”— your startup’s ideas without having to pay for them, they’ll do it in a heartbeat. After all, the great Steve Jobs himself said “We have always been shameless about stealing great ideas.” And while it might be flattering to have a real genius of the caliber of Steve Jobs steal your startup’s ideas, we don’t think you want your carefully crafted idea to be taken from you..
A patent increases your startup’s valuation
It has been estimated that patents increase the valuation of a startup by $1 million! For these reasons, VC consider patents to be strong assets. Let’s get down to the nitty gritty number crunching and find out what makes a patent valuable to a VC – and of course how VCs determine that value. The most valuable patents for VCs do two things: first they protect your startup’s core business – the heart of your startup, your secret sauce. This is the part of your startup that, if you were to lose it, would cause your startup to fail. Second, valuable patents also protect your startup’s market space from competitors. After all, you don’t want to do all the work to develop your startup’s market, just to let all your competitors in, right? Without a patent, you might as well invite your competitors into your startup’s market space. VCs will not put a lot of investment into your startup, only to have someone else copy your startup’s ideas and succeed in your market.
Patents Are Easy To Get
An innovative company doesn’t necessarily have to hire a team of lawyers to patent their ideas and products. Through patent DIY websites, every single creative individual or business, no matter how large or small, can get a patent. By using such a platform you can grow your business, protect your ideas and keep your employees thriving in a creative environment where they are rewarded for their ingenuity.
Contact KissPatent if your idea needs patent protection!