By: Imdpremiere
Intellectual property (IP) is a primary business component for many entrepreneurs. However, intellectual property differs from other company assets in the way that it is not tangible. Since it is not a piece of physical property, many entrepreneurs neglect to realize its value. As a result, they fail to protect it and lose any advantage they had over their competitors.
However, intellectual property protection is very important in entrepreneurship. To refrain from making the common mistakes, here are the best ways to protect intellectual property for startups.
1. Develop An IP Strategy.
In order to protect intellectual property properly, you need to develop an IP strategy. As with many business plans, there are many necessary elements to include in your strategy. For instance, your first step must be to determine all of your intellectual property assets. Such assets can include copyrights, trademarks, and industrial designs. Then, create timelines for how you will protect your assets and how you will enforce any infringements on your property. Develop an IP strategy so you have a set plan to follow throughout your startup. If done well, your strategy will ensure IP protection.
2. Conduct A Trademark Search.
Another way to protect intellectual property for startups is to conduct a trademark search. Many entrepreneurs run into legal issues when they fail to conduct a search. They put themselves in a vulnerable situation. If you design a trademark that has already been registered, you could create a liability. Consumers will have a hard time differentiating your business from the other business with the same trademark. Furthermore, the company who had already registered the trademark could take legal measures to eliminate this conflict. Protect intellectual property and your startup as a whole by conducting a trademark search before creating new claims.
Read more >> https://imdpremiere.wordpress.com/2019/04/08/5-ways-to-manage-intellectual-property-for-startups/
Showing posts with label Sartups. Show all posts
Showing posts with label Sartups. Show all posts
Jesús Sarcos: Microsoft gives 500 patents to startups
By: Jesús Sarcos
Microsoft today announced a major expansion of its Azure IP Advantage program, which provides its Azure users with protection against patent trolls. This program now also provides customers who are building IoT solutions that connect to Azure with access to 10,000 patents to defend themselves against intellectual property lawsuits.
What’s maybe most interesting here, though, is that Microsoft is also donating 500 patents to startups in the LOT Network. This organization, which counts companies like Amazon, Facebook, Google, Microsoft, Netflix, SAP, Epic Games, Ford, GM, Lyft and Uber among its well over 150 members, is designed to protect companies against patent trolls by giving them access to a wide library of patents from its member companies and other sources.
“The LOT Network is really committed to helping address the proliferation of intellectual property losses, especially ones that are brought by non-practicing entities, or so-called trolls,” Microsoft CVP and Deputy General Counsel Erich Andersen told me.
This new program goes well beyond basic protection from patent trolls, though. Qualified startups who join the LOT Network can acquire Microsoft patents as part of their free membership and as Andresen stressed, the startups will own them outright. The LOT network will be able to provide its startup members with up to three patents from this collection.
There’s one additional requirement here, though: to qualify for getting the patents, these startups also have to meet a $1,000 per month Azure spend. As Andersen told me, though, they don’t have to make any kind of forward pledge. The company will simply look at a startup’s last three monthly Azure bills.
“We want to help the LOT Network grow its network of startups,” Andersen said. “To provide an incentive, we are going to provide these patents to them.” He noted that startups are obviously interested in getting access to patents as a foundation of their companies, but also to raise capital and to defend themselves against trolls.
Read more >> https://jesussarcosweb.wordpress.com/2019/03/28/jesus-sarcos-microsoft-gives-500-patents-to-startups/
Microsoft today announced a major expansion of its Azure IP Advantage program, which provides its Azure users with protection against patent trolls. This program now also provides customers who are building IoT solutions that connect to Azure with access to 10,000 patents to defend themselves against intellectual property lawsuits.
What’s maybe most interesting here, though, is that Microsoft is also donating 500 patents to startups in the LOT Network. This organization, which counts companies like Amazon, Facebook, Google, Microsoft, Netflix, SAP, Epic Games, Ford, GM, Lyft and Uber among its well over 150 members, is designed to protect companies against patent trolls by giving them access to a wide library of patents from its member companies and other sources.
“The LOT Network is really committed to helping address the proliferation of intellectual property losses, especially ones that are brought by non-practicing entities, or so-called trolls,” Microsoft CVP and Deputy General Counsel Erich Andersen told me.
This new program goes well beyond basic protection from patent trolls, though. Qualified startups who join the LOT Network can acquire Microsoft patents as part of their free membership and as Andresen stressed, the startups will own them outright. The LOT network will be able to provide its startup members with up to three patents from this collection.
There’s one additional requirement here, though: to qualify for getting the patents, these startups also have to meet a $1,000 per month Azure spend. As Andersen told me, though, they don’t have to make any kind of forward pledge. The company will simply look at a startup’s last three monthly Azure bills.
“We want to help the LOT Network grow its network of startups,” Andersen said. “To provide an incentive, we are going to provide these patents to them.” He noted that startups are obviously interested in getting access to patents as a foundation of their companies, but also to raise capital and to defend themselves against trolls.
Read more >> https://jesussarcosweb.wordpress.com/2019/03/28/jesus-sarcos-microsoft-gives-500-patents-to-startups/
Intellectual property risks for startups using crowdfunding
By: Sponsor
Crowdfunding can be a great way for a startup company to introduce new products, get paying customers and gain publicity.
Crowdfunding entails not only great potential, but also significant intellectual property risks that companies need to be aware of before launching a campaign. For instance, TikTok+LunaTik designed a premium conversion kit to make Ipod nanos into smartwatches. Great idea, so great that it quickly raised nearly $1 million on Kickstarter. Also, so great that because it did not have any intellectual property protection it was copied and the market was already saturated with knock-offs when it was time to ship.
Here are some general patent, design and trademark aspects to be aware of if you’re planning a crowdfunding campaign.
Patent risks
For an invention to be patentable, it needs to be new (not published before), inventive (a non-obvious invention) and useful (have industrial application). From crowdfunding point of view the challenge and risk is that most crowdfunding platforms require very specific details of the product. When these details are provided, the technical invention may become “disclosed” or “published” and is no longer patentable. This is a big risk in particular with respect of technical products (e.g. electronic devices) that require strong patent protection to maintain competitive advantage on the market. To avoid losing the patentability of your invention(s), it is important to file the first patent application before the campaign is published. Also, it goes without saying that it is important to check the patentability issues before the campaign.
The loss of patentability is not the only patent risk in crowdfunding. If somebody else has patented the invention your product uses, you could be liable for patent infringement. In 2012 US maker of 3D printers 3D Systems sued a company who had just raised almost $3 million on Kickstarter (they also sued Kickstarter for providing the platform!). The case was later settled and lawsuit dropped.
Design risks
Designs protect the shape and look of the product. For a design to be protectable, it must be novel (new) and have individual character (depart sufficiently from other forms and shapes on the market). As with patents, the novelty requirement means that once the product is published, it cannot be protected with design registration. However, this rule is not absolute, the European design law allows for a 12-month “grace-period” during which registration is still possible. The use of grace period is not without its risks. If another company introduces the same design (on purpose or by accident) that will be an obstacle for the registration of your design because your design will no longer be considered new.
As with patents, it is also possible that the design of your product (e.g. its shape) infringes on another company’s design rights.
Trademark risks
In almost all countries trademark rights are established by registering the trademark. If your product name is not registered, it is not protected and is open for others to use and register. Successful Kickstarter or Indiegogo project can make your product world-famous almost overnight.
We have had the displeasure of dealing with numerous trademark cases where our client’s trademark has been registered by somebody else in China. There are companies in China that scan the US and EU trademark databases and protect corresponding trademarks in China. We have not yet had any actual cases where a Chinese company registered a Chinese trademark after seeing the name in Kickstarter or Indiegogo, but we are certain that this is already happening and the first case is already brewing.
The cost of trademark registration is relatively small, but if somebody else registers your trademark it can paralyze your business. For example, manufacturing in China might be out of the question.
Without protecting your trademark before your crowdfunding project, you run the risk that manufacturing the product will infringe another company’s trademark, even if that other company has register your product name in bad faith.
Final remarks
Not protecting your intellectual property before your crowdfunding entails two types of risks. First, you might not be able to protect your intellectual property later. Second, it is possible that your crowdfunding campaign will infringe on other company’s intellectual product.
We wish you safe and successful crowdfunding. If you want to know if your trademark is registrable, you can do a free QuickCheck on our website at Reggster.com
Read More >> https://www.eu-startups.com/2018/11/intellectual-property-risks-for-startups-using-crowdfunding/
Crowdfunding can be a great way for a startup company to introduce new products, get paying customers and gain publicity.
Crowdfunding entails not only great potential, but also significant intellectual property risks that companies need to be aware of before launching a campaign. For instance, TikTok+LunaTik designed a premium conversion kit to make Ipod nanos into smartwatches. Great idea, so great that it quickly raised nearly $1 million on Kickstarter. Also, so great that because it did not have any intellectual property protection it was copied and the market was already saturated with knock-offs when it was time to ship.
Here are some general patent, design and trademark aspects to be aware of if you’re planning a crowdfunding campaign.
Patent risks
For an invention to be patentable, it needs to be new (not published before), inventive (a non-obvious invention) and useful (have industrial application). From crowdfunding point of view the challenge and risk is that most crowdfunding platforms require very specific details of the product. When these details are provided, the technical invention may become “disclosed” or “published” and is no longer patentable. This is a big risk in particular with respect of technical products (e.g. electronic devices) that require strong patent protection to maintain competitive advantage on the market. To avoid losing the patentability of your invention(s), it is important to file the first patent application before the campaign is published. Also, it goes without saying that it is important to check the patentability issues before the campaign.
The loss of patentability is not the only patent risk in crowdfunding. If somebody else has patented the invention your product uses, you could be liable for patent infringement. In 2012 US maker of 3D printers 3D Systems sued a company who had just raised almost $3 million on Kickstarter (they also sued Kickstarter for providing the platform!). The case was later settled and lawsuit dropped.
Design risks
Designs protect the shape and look of the product. For a design to be protectable, it must be novel (new) and have individual character (depart sufficiently from other forms and shapes on the market). As with patents, the novelty requirement means that once the product is published, it cannot be protected with design registration. However, this rule is not absolute, the European design law allows for a 12-month “grace-period” during which registration is still possible. The use of grace period is not without its risks. If another company introduces the same design (on purpose or by accident) that will be an obstacle for the registration of your design because your design will no longer be considered new.
As with patents, it is also possible that the design of your product (e.g. its shape) infringes on another company’s design rights.
Trademark risks
In almost all countries trademark rights are established by registering the trademark. If your product name is not registered, it is not protected and is open for others to use and register. Successful Kickstarter or Indiegogo project can make your product world-famous almost overnight.
We have had the displeasure of dealing with numerous trademark cases where our client’s trademark has been registered by somebody else in China. There are companies in China that scan the US and EU trademark databases and protect corresponding trademarks in China. We have not yet had any actual cases where a Chinese company registered a Chinese trademark after seeing the name in Kickstarter or Indiegogo, but we are certain that this is already happening and the first case is already brewing.
The cost of trademark registration is relatively small, but if somebody else registers your trademark it can paralyze your business. For example, manufacturing in China might be out of the question.
Without protecting your trademark before your crowdfunding project, you run the risk that manufacturing the product will infringe another company’s trademark, even if that other company has register your product name in bad faith.
Final remarks
Not protecting your intellectual property before your crowdfunding entails two types of risks. First, you might not be able to protect your intellectual property later. Second, it is possible that your crowdfunding campaign will infringe on other company’s intellectual product.
We wish you safe and successful crowdfunding. If you want to know if your trademark is registrable, you can do a free QuickCheck on our website at Reggster.com
Read More >> https://www.eu-startups.com/2018/11/intellectual-property-risks-for-startups-using-crowdfunding/
5 Major Mistakes That Could Derail Your Startup
By: ADMIN
Startup Mistakes
Hindsight may be 20/20 but who doesn’t want to avoid making startup mistakes when possible? In business, mistakes can cost you money, customers, and even your hard-earned brand. However, there are missteps that can easily be avoided with the right preparation and awareness.
Waiting too long to delegate
As a leader, your role is to inspire your team with your long-term vision, innovation, and planning. In the nascent stages of your company, you wear many functional hats and perform many roles. As the business grows, you need people to manage different areas and specialists who’ll add their expertise to your management team. Bring on team members with skills that are different than yours and give them the tools they require to execute. The ability to successfully manage is different than the ability to lead. Relinquish the management role to someone who has proven experience so you can focus on exploring new opportunities.
Not learning from failures
Failures in a growing startup are par for the course, no matter the business. Every failure is an opportunity to learn and grow, and when things veer off-track, be nimble and open to pivoting if necessary. When you remove the fear of failure, teams are free to move forward, innovate, experiment, and flex their creative muscle. Minimize people’s natural aversion to risk and instill a culture of continuous learning in which the lessons learned are used to improve the business.
RELATED: The Ultimate Guide to Google Ranking Factors in 2019
Not protecting your intellectual property
You’ve worked hard to build out your business so it’s crucial you protect intangible assets like your name, logo and if you’re a designer or inventor, your creation. Everyone starts small, but protecting your intellectual property is important when planning long-term. The theft of intellectual property is a rampant problem, and patent, trademark, and copyright protection are your best bet against what could amount to a significant financial loss.
Read More >> http://www.sbentrepreneur.org/5-startup-mistakes-you-can-avoid/
Startup Mistakes
Hindsight may be 20/20 but who doesn’t want to avoid making startup mistakes when possible? In business, mistakes can cost you money, customers, and even your hard-earned brand. However, there are missteps that can easily be avoided with the right preparation and awareness.
Waiting too long to delegate
As a leader, your role is to inspire your team with your long-term vision, innovation, and planning. In the nascent stages of your company, you wear many functional hats and perform many roles. As the business grows, you need people to manage different areas and specialists who’ll add their expertise to your management team. Bring on team members with skills that are different than yours and give them the tools they require to execute. The ability to successfully manage is different than the ability to lead. Relinquish the management role to someone who has proven experience so you can focus on exploring new opportunities.
Not learning from failures
Failures in a growing startup are par for the course, no matter the business. Every failure is an opportunity to learn and grow, and when things veer off-track, be nimble and open to pivoting if necessary. When you remove the fear of failure, teams are free to move forward, innovate, experiment, and flex their creative muscle. Minimize people’s natural aversion to risk and instill a culture of continuous learning in which the lessons learned are used to improve the business.
RELATED: The Ultimate Guide to Google Ranking Factors in 2019
Not protecting your intellectual property
You’ve worked hard to build out your business so it’s crucial you protect intangible assets like your name, logo and if you’re a designer or inventor, your creation. Everyone starts small, but protecting your intellectual property is important when planning long-term. The theft of intellectual property is a rampant problem, and patent, trademark, and copyright protection are your best bet against what could amount to a significant financial loss.
Read More >> http://www.sbentrepreneur.org/5-startup-mistakes-you-can-avoid/
Intellectual property strategies for startups
By: Benjamin Lehberger
Intellectual property protection is an important consideration for most startups. Obtaining intellectual property protection, such as patents, can minimize competition and act as a defensive mechanism against infringement claims from others. Intellectual property also can attract or solidify funding and partnerships. In formulating an intellectual property strategy for your startup, consider the following.
File early, and keep quiet
Your time to file for patent protection is limited and patents should be contemplated early on in development. In the United States, an inventor has a one-year “grace period” from first publicizing an invention to filing for patent protection, after which it is too late. However, you should not wait even that long. In 2013, the U.S. patent system switched from a first-to-invent to a first-inventor-to-file system. This subtle difference in terminology could mean dire consequences for those who delay seeking patent protection.
Under the old first-to-invent system, you could be the first to conceive of an invention and still obtain patent rights over an earlier filer by showing that you conceived first and continued to diligently work on your invention. Today, it is a race to the patent office. Regardless of who conceived of the invention first, the first one to file their patent application “wins.”
Also, it is important to note that the one-year “grace period” to file a patent application is not available in most countries outside of the United States. If you plan to seek patent protection abroad, publicizing your invention at any time before filing a patent application could put your foreign intellectual property rights in jeopardy. Therefore, file early and keep quiet until you do.
File again as the invention evolves
As your startup continues to develop its product or products, consider each new feature as a possibility for patent protection. Startups that file one early patent application and stop may find that, once the patent issues, the product has moved far beyond what was in the original patent application. The product may end up being under-protected or not even covered by the patent at all.
It is important to reevaluate patent protection on a regular basis and consider filing on new features of the invention when applicable. If the product is evolving quickly, consider filing a provisional patent application or a series of provisional patent applications within a year before filing a utility patent application.
Do not wait for your patent to issue
Patents take time. While there are avenues available to expedite examination, on average it takes more than two years for a patent to be granted by the U.S. Patent Office. About 30 percent of patent applications do not make it through at all.
Having an issued patent may help to get funding for your startup and secure your place in your market. But, do not wait until your patent issues to commercialize your invention. Keep your startup moving forward and keep developing. Chances are, you will solve additional problems along the way, which may lead to even more important inventions. In the meantime, you will be building your brand, reputation and revenue.
Consider design patents
When discussing patents, the focus is often on utility patents, but design patents should also be considered as part of a well-rounded intellectual property strategy. In general, a utility patent protects the way a product is used and works, while a design patent protects the way the product looks. By the end of 2015, the U.S. Patent Office had issued more than 9.2 million utility patents, but only about 746,000 design patents.
Design patents can provide significant value as a supplement to utility patents or as a replacement when utility patent protection is unavailable. Software utility patents are still available in the United States. But, following the U.S. Supreme Court’s decision in Alice v. CLS Bank, obtaining utility patent protection for software-related inventions has become more difficult and less predictable. Design patents provide a viable option to protect certain features of software-related inventions, particularly the graphical user interfaces.
The term of a design patent is slightly less, 15 years from grant for a design patent versus 20 years from filing for a utility patent, but so is the cost. Also, design patents often can be obtained much quicker than utility patents.
Do not rely solely on patents
While patents are a valuable asset to any startup, they are only one piece of the puzzle. First and foremost, a startup needs a good product or service to be successful. The Patent Office awards patents for new and non-obvious inventions. Receiving a patent does not mean, however, that it is necessarily a good invention or one that anyone will want to buy. Make sure what you are protecting is worth protecting.
Second, build a unique brand and protect it with registered trademarks. A trademark is a word, phrase, symbol or design that identifies and distinguishes the source of the goods of one party from those of others. Having a strong and recognizable trademark can be extremely valuable for distinguishing you from the competition. And, unlike patents, a registered trademark never expires as long as you keep using it. Trademarks do not have strict filing deadlines like patents, but it is best to start early and have a trademark clearance search done to ensure that there are no conflicts that could prevent your use of the trademark.
Finally, depending on the type of business your startup is in, copyright and trade secret protection also should be considered in your intellectual property strategy. Talk to an intellectual property professional as you begin building your startup to discuss what types of intellectual property protection will work best for you.
Source >> https://techcrunch.com/2016/10/31/intellectual-property-strategies-for-startups/
Intellectual property protection is an important consideration for most startups. Obtaining intellectual property protection, such as patents, can minimize competition and act as a defensive mechanism against infringement claims from others. Intellectual property also can attract or solidify funding and partnerships. In formulating an intellectual property strategy for your startup, consider the following.
File early, and keep quiet
Your time to file for patent protection is limited and patents should be contemplated early on in development. In the United States, an inventor has a one-year “grace period” from first publicizing an invention to filing for patent protection, after which it is too late. However, you should not wait even that long. In 2013, the U.S. patent system switched from a first-to-invent to a first-inventor-to-file system. This subtle difference in terminology could mean dire consequences for those who delay seeking patent protection.
Under the old first-to-invent system, you could be the first to conceive of an invention and still obtain patent rights over an earlier filer by showing that you conceived first and continued to diligently work on your invention. Today, it is a race to the patent office. Regardless of who conceived of the invention first, the first one to file their patent application “wins.”
Also, it is important to note that the one-year “grace period” to file a patent application is not available in most countries outside of the United States. If you plan to seek patent protection abroad, publicizing your invention at any time before filing a patent application could put your foreign intellectual property rights in jeopardy. Therefore, file early and keep quiet until you do.
File again as the invention evolves
As your startup continues to develop its product or products, consider each new feature as a possibility for patent protection. Startups that file one early patent application and stop may find that, once the patent issues, the product has moved far beyond what was in the original patent application. The product may end up being under-protected or not even covered by the patent at all.
It is important to reevaluate patent protection on a regular basis and consider filing on new features of the invention when applicable. If the product is evolving quickly, consider filing a provisional patent application or a series of provisional patent applications within a year before filing a utility patent application.
Do not wait for your patent to issue
Patents take time. While there are avenues available to expedite examination, on average it takes more than two years for a patent to be granted by the U.S. Patent Office. About 30 percent of patent applications do not make it through at all.
Having an issued patent may help to get funding for your startup and secure your place in your market. But, do not wait until your patent issues to commercialize your invention. Keep your startup moving forward and keep developing. Chances are, you will solve additional problems along the way, which may lead to even more important inventions. In the meantime, you will be building your brand, reputation and revenue.
Consider design patents
When discussing patents, the focus is often on utility patents, but design patents should also be considered as part of a well-rounded intellectual property strategy. In general, a utility patent protects the way a product is used and works, while a design patent protects the way the product looks. By the end of 2015, the U.S. Patent Office had issued more than 9.2 million utility patents, but only about 746,000 design patents.
Design patents can provide significant value as a supplement to utility patents or as a replacement when utility patent protection is unavailable. Software utility patents are still available in the United States. But, following the U.S. Supreme Court’s decision in Alice v. CLS Bank, obtaining utility patent protection for software-related inventions has become more difficult and less predictable. Design patents provide a viable option to protect certain features of software-related inventions, particularly the graphical user interfaces.
The term of a design patent is slightly less, 15 years from grant for a design patent versus 20 years from filing for a utility patent, but so is the cost. Also, design patents often can be obtained much quicker than utility patents.
Do not rely solely on patents
While patents are a valuable asset to any startup, they are only one piece of the puzzle. First and foremost, a startup needs a good product or service to be successful. The Patent Office awards patents for new and non-obvious inventions. Receiving a patent does not mean, however, that it is necessarily a good invention or one that anyone will want to buy. Make sure what you are protecting is worth protecting.
Second, build a unique brand and protect it with registered trademarks. A trademark is a word, phrase, symbol or design that identifies and distinguishes the source of the goods of one party from those of others. Having a strong and recognizable trademark can be extremely valuable for distinguishing you from the competition. And, unlike patents, a registered trademark never expires as long as you keep using it. Trademarks do not have strict filing deadlines like patents, but it is best to start early and have a trademark clearance search done to ensure that there are no conflicts that could prevent your use of the trademark.
Finally, depending on the type of business your startup is in, copyright and trade secret protection also should be considered in your intellectual property strategy. Talk to an intellectual property professional as you begin building your startup to discuss what types of intellectual property protection will work best for you.
Source >> https://techcrunch.com/2016/10/31/intellectual-property-strategies-for-startups/
6 Startup Strategies That Turn Off Most Investors
By: MartinZwilling
Don’t bash the competition. Every investor knows how vulnerable a new startup is to competitors, so investors always ask about your sustainable competitive advantage in the marketplace. How an entrepreneur answers this question speaks volumes about their knowledge of business realities, customers, confidence, and their ability to handle investor funding.
There is no perfect answer to the competitive advantage question, but investors are looking for how your offering will keep ahead of competition, not just at this moment, but throughout the life of their three to five-year investment. They are also seeking to find out how you handle one of the many tough questions that a new founder will get in today’s market.
A strong answer should be something like “Our product introduces a new lower-cost technology, which we have patented and trademarked, that makes us very attractive today, and will provide a wealth of additional products as we move forward.” That says you are competitive today, have a real barrier to entry, and the potential to remain ahead of the competition for a long time.
Based on my own experience as an angel investor, and feedback I get from many other investors, here are a collection of answers that we often hear instead, from the least credible to at least reasonable:
1. Insist you have no competitors. Leading with this answer will likely terminate any further investment opportunity with this investor. He or she will assume your comment means there is no market for your product or service, or you haven’t looked. Neither speaks well for you or your startup. Even if you hedge by saying no direct competitors, we all know that existing cars are still big competition to your new flying automobile.
2. Claim the first mover advantage. This is one of the most frequent responses I hear, and is rarely convincing. The problem is that startups have limited resources to keep them ahead of big companies. If your early traction highlights an opportunity they have missed, they can mobilize their huge resources and run over you. First mover advantages are only sustainable by large companies, or founders with deep pockets.
3. Proclaim your solution as a paradigm shift. If you insist that your technology is so new and unique that it will disrupt your competitors and the whole market, investors will fear that neither they nor you can afford the time and marketing required to weather the change. They will likely decline on the basis that historically, pioneers get all the arrows.
4. Highlight your world-class team as the secret sauce. Insisting that your team is better than any other, giving you a sustainable competitive advantage for the long term, will likely come across as naiveté or arrogance. Investors know that no startup has a lock on the best people and processes, and investors don’t deal with unrealistic founders.
5. Declare that you will offer the product or service free. Free is a dirty word to investors, since they need a return on their investment. Perhaps you intend to collect money from advertisers, but this requires a large investment to get the audience you need before monetization can work. Facebook spent over $150 million before revenue.
6. Intellectual property as barrier to entry. I like patents, trademarks, and trade secrets, so this answer is a better sustainable competitive advantage than the other five answers. Now all you have to do is defend your position, and we all know that patents can break a startup in court battles, and will have alternative implementations if the price is right.
Thus, there is no perfect answer to this question, so the best entrepreneurs see it as an opportunity to highlight their own advantages, rather than put down a competitor. Being negative is never the answer. For example, it’s tempting to say that your worst competitor has poor quality products, requiring costly maintenance, but it’s much better to say that you provide a five-year free warranty that no competitor can match.
After highlighting your best competitive features and your intellectual property barriers to entry, I encourage you to put on your humble face, and proclaim your determination to never stop improving your products and processes to out-distance competitors. You want investors to believe that you are a realist, but have the confidence and determination to win.
Investors know that winning in today’s highly competitive environment is more a mindset than a product feature. Competitor bashing is not a skill that you need to hone. I look for entrepreneurs that can sell themselves and their offering to discerning customers. Money from customers and investors is the same color.
Source:
http://blog.startupprofessionals.com/2015/08/6-startup-strategies-that-turn-off-most.html
Don’t bash the competition. Every investor knows how vulnerable a new startup is to competitors, so investors always ask about your sustainable competitive advantage in the marketplace. How an entrepreneur answers this question speaks volumes about their knowledge of business realities, customers, confidence, and their ability to handle investor funding.
There is no perfect answer to the competitive advantage question, but investors are looking for how your offering will keep ahead of competition, not just at this moment, but throughout the life of their three to five-year investment. They are also seeking to find out how you handle one of the many tough questions that a new founder will get in today’s market.
A strong answer should be something like “Our product introduces a new lower-cost technology, which we have patented and trademarked, that makes us very attractive today, and will provide a wealth of additional products as we move forward.” That says you are competitive today, have a real barrier to entry, and the potential to remain ahead of the competition for a long time.
Based on my own experience as an angel investor, and feedback I get from many other investors, here are a collection of answers that we often hear instead, from the least credible to at least reasonable:
1. Insist you have no competitors. Leading with this answer will likely terminate any further investment opportunity with this investor. He or she will assume your comment means there is no market for your product or service, or you haven’t looked. Neither speaks well for you or your startup. Even if you hedge by saying no direct competitors, we all know that existing cars are still big competition to your new flying automobile.
2. Claim the first mover advantage. This is one of the most frequent responses I hear, and is rarely convincing. The problem is that startups have limited resources to keep them ahead of big companies. If your early traction highlights an opportunity they have missed, they can mobilize their huge resources and run over you. First mover advantages are only sustainable by large companies, or founders with deep pockets.
3. Proclaim your solution as a paradigm shift. If you insist that your technology is so new and unique that it will disrupt your competitors and the whole market, investors will fear that neither they nor you can afford the time and marketing required to weather the change. They will likely decline on the basis that historically, pioneers get all the arrows.
4. Highlight your world-class team as the secret sauce. Insisting that your team is better than any other, giving you a sustainable competitive advantage for the long term, will likely come across as naiveté or arrogance. Investors know that no startup has a lock on the best people and processes, and investors don’t deal with unrealistic founders.
5. Declare that you will offer the product or service free. Free is a dirty word to investors, since they need a return on their investment. Perhaps you intend to collect money from advertisers, but this requires a large investment to get the audience you need before monetization can work. Facebook spent over $150 million before revenue.
6. Intellectual property as barrier to entry. I like patents, trademarks, and trade secrets, so this answer is a better sustainable competitive advantage than the other five answers. Now all you have to do is defend your position, and we all know that patents can break a startup in court battles, and will have alternative implementations if the price is right.
Thus, there is no perfect answer to this question, so the best entrepreneurs see it as an opportunity to highlight their own advantages, rather than put down a competitor. Being negative is never the answer. For example, it’s tempting to say that your worst competitor has poor quality products, requiring costly maintenance, but it’s much better to say that you provide a five-year free warranty that no competitor can match.
After highlighting your best competitive features and your intellectual property barriers to entry, I encourage you to put on your humble face, and proclaim your determination to never stop improving your products and processes to out-distance competitors. You want investors to believe that you are a realist, but have the confidence and determination to win.
Investors know that winning in today’s highly competitive environment is more a mindset than a product feature. Competitor bashing is not a skill that you need to hone. I look for entrepreneurs that can sell themselves and their offering to discerning customers. Money from customers and investors is the same color.
Source:
http://blog.startupprofessionals.com/2015/08/6-startup-strategies-that-turn-off-most.html
Startups Intellectual Property Right Protection Scheme
By Aapka Consultant - November 30, 2017
Intellectual Property Rights are very important asset for Startups in India and it is important to protect them by taking effective measures. Intellectual Property Rights are very effective tool for any Business Organisation to boost Industrial Competitiveness. Various business groups should focus to protect their IP (Intellectual Property) along with other important things. The Startup India Action Plan 2016 through the “Scheme for Facilitating Startups Intellectual Property Protection” promotes Intellectual Property Registration. The scheme for facilitating Startups Intellectual Property Protection is made to protect Patent, Trademarks and Designs of Startups.
Scheme for Facilitating Startups Intellectual Property protection (SIPP)
The scheme is released by the Office of Comptroller General of Patents Designs and Trademarks on 22nd April 2016 with the objective to protect and promote Intellectual Property Rights awareness for Startups in India. By this scheme the appointment of experienced and registered Trade Marks /patent Agents as Facilitator to guide and help the Startups in matters relating to protection of Intellectual Property. The Startups shall not have to pay any kind of fees for availing services from the Facilitators because they are directly paid by the Central Government. The Objective of this Scheme is to assist the Startups in protection and promotion of their Intellectual Property by providing good IP services. This Scheme is designed to promote awareness and adoption of Intellectual Property Rights.
Intellectual Property Facilitators
For the effective implementation of the scheme the Controller General of Patent, Trademark and Design appoint Facilitators to assist the Startups in protecting the Intellectual Property Rights. There is a list of persons who can be appointed as Facilitators:
Any Patent Agent registered with the Controller General of patent, Design, Trademark (CGPDTM)
Any Trademark Agent registered with the Controller General of Patent, Design, Trademark (CGPDTM)
Any Advocate as defined under The Advocates Act, 1961 who is actively involved in filing and disposal of applications for Patents, Trademarks and Designs.
Government Departments, Organisation, Agencies.
Functions of Facilitators
The functions of Facilitators are decided by the Controller General of Patent, Design, and Trademark (CGPDTM). The Facilitators provides following Intellectual Property Protection Services to the Startups:
It provides general advice on different Intellectual Property Rights to Startups.
It provides assistance in filing and disposal of the Intellectual Property applications related to Trademarks, patents, designs.
It provides assistance for inventions of Startups.
It prepares and files responses to examination reports and other notices, letters by the IP office.
It appears at hearing on behalf of the Startup.
It contests opposition by other parties.
It provides information on protection and promotion of IPR to Startups in other Countries.
These are the basic functions of Facilitators which they are bound to perform during their duty. The facilitators can be removed from the office by Controller General of Patent, Design, and Trademark (CGPDTM) if:
He receives any information about the professional misconduct of Facilitator.
He receives any complaint from the Startups.
Intellectual Property Rights are very important tool for a Business Organisation in achieving the success. It is the main reason why we should protect the IPR in Startups. Every Startup should have the knowledge of protecting the Intellectual property (Patent, Trademarks, and Designs etc). For the protection of Startup IP the Central Government had taken a good initiative by making the scheme for facilitating Startups IPR. For the effective enforcement of the scheme the Government appointed facilitator. These Facilitators provides the advice and assistance to Startups in protecting the Intellectual Property. They also provide awareness to the Startups to protect their Intellectual Property Rights. Overall this Scheme is objected to protect the Startups Intellectual Property Rights.
Intellectual Property Rights are very important asset for Startups in India and it is important to protect them by taking effective measures. Intellectual Property Rights are very effective tool for any Business Organisation to boost Industrial Competitiveness. Various business groups should focus to protect their IP (Intellectual Property) along with other important things. The Startup India Action Plan 2016 through the “Scheme for Facilitating Startups Intellectual Property Protection” promotes Intellectual Property Registration. The scheme for facilitating Startups Intellectual Property Protection is made to protect Patent, Trademarks and Designs of Startups.
Scheme for Facilitating Startups Intellectual Property protection (SIPP)
The scheme is released by the Office of Comptroller General of Patents Designs and Trademarks on 22nd April 2016 with the objective to protect and promote Intellectual Property Rights awareness for Startups in India. By this scheme the appointment of experienced and registered Trade Marks /patent Agents as Facilitator to guide and help the Startups in matters relating to protection of Intellectual Property. The Startups shall not have to pay any kind of fees for availing services from the Facilitators because they are directly paid by the Central Government. The Objective of this Scheme is to assist the Startups in protection and promotion of their Intellectual Property by providing good IP services. This Scheme is designed to promote awareness and adoption of Intellectual Property Rights.
Intellectual Property Facilitators
For the effective implementation of the scheme the Controller General of Patent, Trademark and Design appoint Facilitators to assist the Startups in protecting the Intellectual Property Rights. There is a list of persons who can be appointed as Facilitators:
Any Patent Agent registered with the Controller General of patent, Design, Trademark (CGPDTM)
Any Trademark Agent registered with the Controller General of Patent, Design, Trademark (CGPDTM)
Any Advocate as defined under The Advocates Act, 1961 who is actively involved in filing and disposal of applications for Patents, Trademarks and Designs.
Government Departments, Organisation, Agencies.
Functions of Facilitators
The functions of Facilitators are decided by the Controller General of Patent, Design, and Trademark (CGPDTM). The Facilitators provides following Intellectual Property Protection Services to the Startups:
It provides general advice on different Intellectual Property Rights to Startups.
It provides assistance in filing and disposal of the Intellectual Property applications related to Trademarks, patents, designs.
It provides assistance for inventions of Startups.
It prepares and files responses to examination reports and other notices, letters by the IP office.
It appears at hearing on behalf of the Startup.
It contests opposition by other parties.
It provides information on protection and promotion of IPR to Startups in other Countries.
These are the basic functions of Facilitators which they are bound to perform during their duty. The facilitators can be removed from the office by Controller General of Patent, Design, and Trademark (CGPDTM) if:
He receives any information about the professional misconduct of Facilitator.
He receives any complaint from the Startups.
Intellectual Property Rights are very important tool for a Business Organisation in achieving the success. It is the main reason why we should protect the IPR in Startups. Every Startup should have the knowledge of protecting the Intellectual property (Patent, Trademarks, and Designs etc). For the protection of Startup IP the Central Government had taken a good initiative by making the scheme for facilitating Startups IPR. For the effective enforcement of the scheme the Government appointed facilitator. These Facilitators provides the advice and assistance to Startups in protecting the Intellectual Property. They also provide awareness to the Startups to protect their Intellectual Property Rights. Overall this Scheme is objected to protect the Startups Intellectual Property Rights.
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