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IP & patent strategy for startups

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IP / Patent Strategy for Startups and Early Stage Ventures

IP & patent strategy for startups

  1. 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   Page  1  
  2. 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   Page  2  
  3. 3. Business   View   Why:   The  Business  View  ©  2013    IPStrategy.ca   Page  3  
  4. 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.    ©  2013    IPStrategy.ca   Page  4  
  5. 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  ©  2013    IPStrategy.ca   Page  5  
  6. 6. Investors   &  Exits   Why:     Investors  Perspec9ves  ©  2013    IPStrategy.ca   Page  6  
  7. 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  ©  2013    IPStrategy.ca   Page  7  
  8. 8. Opera9onal   View   How:     The  Opera9onal  View  ©  2013    IPStrategy.ca   Page  8  
  9. 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  ©  2013    IPStrategy.ca   Page  9  
  10. 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   ©  2013    IPStrategy.ca   Page  10  
  11. 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  ©  2013    IPStrategy.ca   Page  11  
  12. 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    IPStrategy.ca   Page  12  
  13. 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  ©  2013    IPStrategy.ca   Page  13  
  14. 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  ©  2013    IPStrategy.ca   Page  14  
  15. 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  ©  2013    IPStrategy.ca   Page  15  
  16. 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    IPStrategy.ca   Page  16  
  17. 17. Ac9on   Plans  &   Successes   How:   Ac9on  Plans  &  Successes  ©  2013    IPStrategy.ca   Page  17  
  18. 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    ©  2013    IPStrategy.ca   Page  18  
  19. 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…    ©  2013    IPStrategy.ca   Page  19  

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