Software companies and entruepunurs are faced with the question of whether to spend $8K to 15K to file a non-provisional patent application covering a software invention or whether the money is better spent to keep to the lights on or hire engineer to futher develop the product.
Here are the factors you should consider when deciding whether to seek a patent protection on a software related invention. I generally recommend that a client consider applying for patent protection on software related inventions if at least one of the following is true:
- The client has enough funds to fund patent litigation should the need arise
- The invention is sufficiently important to another company to cause that other company to negotiate (a license or assignment of patent rights) with the client if the client has a patent.
- The client owns many patents and has enough market power in the industry to convince other patent holders to enter cross-licensing agreements
- The invention will change the course of a particular market and failure to patent presents the risk that others in the market will obtain a patent on the same idea and will stop the client from making or selling the invention.
- The client would like to impress potential funders, financial
backers, VCs, or others by showing that the client’s invention is
unique as shown by a patent. - The client would like to impress potential funders, financial backers, VCs, or others with patent pending status.
- The client anticipates selling the business at some point down
the road and wants to increase the business’s value by owning patents
or pending patent applications.
