This document provides an overview of intellectual property strategy considerations for startups and early stage companies. It discusses why IP strategy is important from a business perspective to position the company for future opportunities like acquisition or growth. It also covers investor perspectives and how an IP strategy can integrate with operational aspects like innovation cycles and product development processes. The document emphasizes performing analyses to understand competitive landscapes and technology spaces before determining filing strategies that balance risk and return for a startup.

1.
A
Business
Perspec9ve
on
IP
Strategy
for
Startups
and
Early
Stage
Companies
Peter
Cowan,
P.Eng,
MBA.
www.ipstrategy.ca
@noremacc
©
2013
IPStrategy.ca
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1

2. Agenda
Focus:
Strategy
in
the
Context
of
a
Startup
The
WHY
• IP
Toolkit
• Innova9on
Cycles
• Business
Posi9oning
• TALCs,
MVPs
and
Pivots
• Technology
Mapping
• Planning
and
Budgets
• Lean
Startup
• Filing
Strategies
Methodology
• Quality
vs.
Quan9ty
Business
Opera9onal
• SoRware
Patents
View
View
Ac9on
Investor
Plans
and
View
Successes
• Exits
&
Growth
Plans
• Lessons
Learned
• Investor
Protec9on
• Ac9ons
for
Success
The
HOW
©
2013
IPStrategy.ca
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3. Business
View
Why:
The
Business
View
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IPStrategy.ca
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3

4. Why
do
(smart)
startups
need
an
IP
Strategy?
Business
Posi*oning
Poor
Business
Drivers
• Prepare
for
future
• Enforcement
&
Cross
acquisi9on
license
plans
• Prepare
for
future
defense
• Compe9tor
preven9on
• Prepare
for
hyper-­‐growth
• Thinking
‘You
have
to
play
• Business
Partners
&
the
game’
Investors
• You
have
to
play
the
game
Risk
&
ROI,
for
both
short
and
long
term,
before
a
startup
implements
the
Strategy
of
Patent
Filings.
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5. Why
IP
Strategy
strengthens
the
Business
Strategy
• Map
business
to
technology
– Validates
whitespace
tech
analysis
– Compe99ve
monitoring
&
posi9on
• Lean
Startup
/
Canvas
interac9on
– Ins9gates
a
Technology
Pivot
– Defines
Unique
Value
Proposi9on
&
Unfair
Advantage
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6. Investors
&
Exits
Why:
Investors
Perspec9ves
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6

7. Investors
&
Exits
Exits,
Growth
Plans
&
Investor
Considera*ons
• “Just
get
something
filed”
• Early
stage
technical
acquisi9on
vs.
SME
acquisi9on
stage
• Technical
Buyouts
vs.
market
acquisi9ons
• Investor
Perspec9ves
change
at:
Startup
à
Small
à
Medium
à
Large
à
Mul9na9onal
En9ty
When
talking
with
investors,
Infringement
&
Protec9on
are
not
the
same
conversa9on
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8. Opera9onal
View
How:
The
Opera9onal
View
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9. IP
Strategy
Toolkit
Analy*cs
&
Analysis
Internal
Processes
• Technology
Landscaping
• Harves9ng
à
Evalua9on
à
• State
of
the
Art
searches
Filing
– Idea
Ranking
&
Priority
• IP
Landscape
analysis
– Review
Comminees
• Compe99ve
IP
pormolio
– IDF
(Disclosure
Forms)
analysis
– Business
/
Strategy
Valida9on
• Whitespace
or
Overlap
• HR,
Culture
&
Climate
analysis
Analy*cs
–
Informa*on
&
Knowledge
Process
–
Deliverables
&
Ac*ons
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10. Inside
the
Innova9on
Cycle
In
Prac*ce:
Where
IP
integrates
into
the
work
cycle
Product
Ideas
Team
(People)
Pain
Points
Deployment
Market
Customers
Technology
Needs
Idea
Capture
Evalua9on
&
Design
MVP
/
Launch
Timing
of
Ac9ons
Validate
the
Idea:
Novelty
and
Freedom
to
Operate
Posi9on
in
the
market:
Technology
&
IP
Landscapes
Harvest:
Idea
review
&
Rank
Evaluate:
IDF,
Validate
&
Rank
Filing:
DraRing
&
Filing
9ming
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11. Filing
Strategies
Filing
Strategy
Depends
on
Market:
• Offensive
For
Further
Reading:
– Disrup9ve
Technology
Visionary
– Early
Adopter
&
Market
Leadership
– Founda9on
IP
Integrated
• Defensive
Profit
Center
– Pre-­‐emp9ve
destruc9on
Cost
Control
– Design
Freedom
Defensive
• Patent
Trolls
• Mul9na9onals
vs.
SME’s
• The
posi9on
of
Startups
in
the
IP
Value
Herarchy
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12. TALCs,
MVPs
and
Pivot
pimalls
Patent
Scope
&
Timing
of
Filings:
• Early
Market
protec9on
• Main
Street
coverage
• Beachhead
and
Bowling
Pins
• MVP:
Bar
Dates
for
release
• MVP:
MVP
2.0
coverage
• Pivots:
Timing
and
scope
of
filings,
provisional
filings
Risk
&
ROI
again:
Most
startups
have
mul9ple
pivots,
and
IP
needs
to
adjust
each
9me.
©
2013
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13. Planning
&
Budgets
Basic
Legal
Budgets
Basic
Business
Budgets
• Novelty
Assessment
or
PA
• Landscape:
$5-­‐10k
searches:
$1-­‐2k
• Analy9cs:
$5-­‐20k+
• FTO:
$2-­‐5k
• IP
Strategy:
$10-­‐20k
• Invalidity
/
Validity:
$5-­‐8k
• Drivers:
• Provisional:
$2-­‐4k
– Advisory
Boards,
Investors
• Filings:
$7-­‐15k
– CTO/CEO,
etc.
Rules
of
Thumb:
Timeline:
3-­‐4
months
lead
9me
People:
10-­‐40
hours
IP
Strategy
for
generally
the
cost
Budget:
Y1
@
$10+k
Y2-­‐4
@
4k/yr
+
global
of
filing
one
patent
expansion
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14. Quan9ty
vs.
Quality
Relevant
IP
à
Reducing
the
Patent
Value
Gap
Leverage
Protect
Divest
Value
of
Patent
Pormolio
Patent
Strategy
Focus
Patent
Value
Gap
Single
or
Mined
Product
Ideas
may
fit
here
5%
75%
100%
Percent
(%)
of
Patent
Pormolio
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15. Quality
Predictors
Filing
Predictors
of
Value:
Quality
Thinking:
• Provisional
Filings
Idea
aligned
with
• Family
Size
business
goals
and
• Breadth
across
IPC
classes
technology
direc9on
• Claim
Counts
Legally
Enforceable
and
Licensable
Economic
Value
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2013
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16. SoRware
Considera9ons
Do
you
really
need
IP
@
the
startup
phase?
• Resources
&
cost
alloca9on
in
the
overall
business
• Speed
of
product
and
market
change
• Speed
of
Lean
Startup
itera9ons
vs.
patent
costs
• Long
game
benefits
• Pure
soRware
vs.
integrated
with
technology
Not
filing
IP
is
a
viable
strategy
if
alternate
planning
is
done
©
2013
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17. Ac9on
Plans
&
Successes
How:
Ac9on
Plans
&
Successes
©
2013
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18. Lessons
Learned
• Growth:
Facebook’s
$500M
pormolio
acquisi9on
• NDA’s:
Techforward
vs.
BestBuy
• Posi*oning:
Datum
Telegraphic
&
PMC-­‐Sierra
• Disrup*ve
Technology:
Honeywell
vs.
Nest
• Essen*als:
i4i
vs.
MicrosoR
• Lost
Opportunity:
GoPro
&
sports
cam
industry
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19. Ac9ons
for
Success
• IP
&
Accountability:
Board
of
Advisers
• CTO
/
IP:
Planning
Cycle
• Culture
imprint
• Project
Impacts:
Development
Process
• Legal
Points:
Ownership,
Publica9ons,
IDFs,
Log
Books,
NDA’s,
Bar
Dates,
Filing
Plans…
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2013
IPStrategy.ca
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