Reasons to Patent: Credibility

If you missed last week’s “Reasons to Patent” post, it was all about licensing. Check it out here.

As I mentioned last week, one of the most common misconceptions I come across is that the only way a patent can bring value to your business is through legal enforcement (suing a competitor for patent infringement). In reality, there are many, many other reasons to file a patent that are far more relevant to newer, smaller businesses (such as technology startups).

This week I will be discussing credibility. In the early phases of the life of a startup, the credibility of you and your business is very important. You will need to work with other businesses and people in order for your business to grow and succeed, but they likely won’t work with you if they don’t trust or believe in your venture.

There are many ways to show your industry that you are committed, and I wouldn’t suggest just relying on one, but since this blog is all about patents, I’m going to focus on that. Investing the time and money into filing a high-quality patent application is a great way to show others that you are willing to do what it takes to make your business succeed.

Once you file your initial application, you can properly claim that you have “Patent Pending” status. This label sounds impressive. Those who don’t know what is involved in getting to that stage are impressed because they assume it must be difficult (many people don’t understand the difference between an issued patent and patent pending). Those who have been through the process before are also impressed because they know how much effort and investment it takes!

There are many types of people and business relationships where this credibility will come in handy. For example, you may be seeking investment. Initially from friends and family, later from angel investors and VCs. Anyone investing in your business would love to see that you have thought through the protection of your core IP, and that you have invested in your business. If you take your business seriously, they are more likely to also take it seriously. This also applies to banks if you’re looking for a loan, potential new hires you may want to join your cause, other companies you might partner with, granting agencies, and more.

At The IP Link, we help our clients understand the value a patent application might bring to their business BEFORE they start spending tens of thousands or even hundreds of thousands of dollars on their legal fees with a lawyer. If you’re looking for investment, partnerships, or to hire high-caliber type-A people and you haven’t considered how a patent could help, let’s book a 45-minute strategy session to discuss it!