Creating Value Through IP in Innovation

𝗣𝗮𝘁𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝘃𝗮𝗹𝘂𝗮𝗯𝗹𝗲 𝗮𝘀𝘀𝗲𝘁𝘀 𝗳𝗼𝗿 𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗳𝗼𝗿 𝗲𝗮𝗿𝗹𝘆-𝘀𝘁𝗮𝗴𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀. Too many startup founders engage in the following self-sabotaging logic: • The only benefit of a patent is to enable me to sue competitors. • We don't have the resources to sue competitors. • Therefore patents won't benefit us. Yet, in my 25+ years of obtaining software patents, I've found that 𝘁𝗵𝗲 𝘃𝗮𝘀𝘁 𝗺𝗮𝗷𝗼𝗿𝗶𝘁𝘆 𝗼𝗳 𝗺𝘆 𝗰𝗹𝗶𝗲𝗻𝘁𝘀 𝗻𝗲𝘃𝗲𝗿 𝘀𝘂𝗲 𝗳𝗼𝗿 𝗽𝗮𝘁𝗲𝗻𝘁 𝗶𝗻𝗳𝗿𝗶𝗻𝗴𝗲𝗺𝗲𝗻𝘁. That's not the primary reason they obtain patents (although it's nice to retain as an option if needed). Instead, 𝗽𝗮𝘁𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝗳𝗮𝗿 𝗺𝗼𝗿𝗲 𝘃𝗮𝗹𝘂𝗮𝗯𝗹𝗲 for the strategic advantages they provide—advantages that can be critical 𝗳𝗼𝗿 𝗮𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝘁𝗵𝗮𝘁 𝗳𝘂𝗲𝗹 𝗴𝗿𝗼𝘄𝘁𝗵. When you approach investors, they want to know, "What prevents others from copying your innovations? What is your moat?" A well-constructed patent portfolio provides one powerful answer to those questions, demonstrating that your company is not only innovative but also strategically positioned to protect and capitalize on that innovation. Investors are drawn to companies with strong intellectual property (IP) because it represents a form of security. That's why 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝘄𝗶𝘁𝗵 𝘀𝘂𝗯𝘀𝘁𝗮𝗻𝘁𝗶𝗮𝗹 𝗽𝗮𝘁𝗲𝗻𝘁 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼𝘀 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁𝗹𝘆 𝘀𝗲𝗰𝘂𝗿𝗲 𝗹𝗮𝗿𝗴𝗲𝗿 𝗱𝗲𝗮𝗹 𝘀𝗶𝘇𝗲𝘀 𝘁𝗵𝗮𝗻 𝘁𝗵𝗼𝘀𝗲 𝘄𝗶𝘁𝗵𝗼𝘂𝘁. The reason is simple: patents provide a defensible business moat, ensuring that competitors can't easily erode your market share by replicating your innovations. Countless clients of mine over the years have effectively used the pending patent applications that I’ve filed for them as powerful tools to signal value to investors. One of the most gratifying aspects of my work is seeing clients benefit from patent filings in this way. Clients who take the additional step of 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗽𝗮𝘁𝗲𝗻𝘁 𝗲𝘅𝗮𝗺𝗶𝗻𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗼𝗯𝘁𝗮𝗶𝗻 𝗮𝘁 𝗹𝗲𝗮𝘀𝘁 𝗼𝗻𝗲 𝗸𝗲𝘆 𝗴𝗿𝗮𝗻𝘁𝗲𝗱 𝗽𝗮𝘁𝗲𝗻𝘁 𝗾𝘂𝗶𝗰𝗸𝗹𝘆 𝗳𝗶𝗻𝗱 𝘁𝗵𝗲𝗺𝘀𝗲𝗹𝘃𝗲𝘀 𝗲𝘃𝗲𝗻 𝗺𝗼𝗿𝗲 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗶𝗻 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝘁𝗵𝗲𝘀𝗲 𝗽𝗮𝘁𝗲𝗻𝘁𝘀 𝘁𝗼 𝗿𝗮𝗶𝘀𝗲 𝗳𝘂𝗻𝗱𝘀. When you view patents as assets that can attract funding more quickly, easily, and in larger amounts, their true value becomes clear: they are not just a cost, but a powerful investment in your company's growth and success. #patents #ip #fundraising

A few people asked what it actually looks like to file patent applications the smart way. Here’s the framework I give startup teams who want to protect innovation without wasting capital: 1. Don’t file just because you “can.” Too many patent applications get filed on features that aren’t core to the product, the market, or the long-term strategy. Just because it’s technically new doesn’t mean it’s worth protecting. 2. Tie every filing to a business objective. What are you trying to accomplish? Protect revenue? Block a competitor? Support a valuation narrative? There needs to be a clear business case for every dollar spent on IP. 3. Prioritize enforceability over imagination. Broad, abstract patents might sound exciting, but they often fail when tested. Focus on what you can realistically enforce. If your claim can’t stand up in court or deter a competitor, it’s not helping you. 4. Treat foreign filings like investments — not checkboxes. Filing internationally gets expensive fast. File where you have customers, competitors, or partners. Not where “you might want protection someday.” 5. Reassess regularly. As your product evolves, your patent strategy should too. What mattered at seed stage may not matter at Series B. Trim the fat. Redirect capital where it matters. The bottom line: a strong patent strategy isn’t about quantity — it’s about alignment. The best portfolios are lean, targeted, and tied directly to how the company competes and grows. If you’re not sure whether your IP is doing that, it’s worth a second look.

Your startup's most valuable asset isn't your office space, your tech stack, or even your customer list. It's your intellectual property. But most founders miss a few critical things about IP until it's too late: 1. Patents aren't just for tech giants  They can boost your valuation in early funding rounds. Thinking global? File internationally from the start. Many VCs won’t even look at you without solid IP protection. 2. You don’t need a patent for everything Most products use a mix: Patents, trademarks, copyright, and trade secrets Software? Protect code with copyright, functions with patents, name with trademarks  Smart founders protect only what matters — and stretch their legal budget further. 3. If you don’t own your IP, your startup is at risk Biggest mistake? Forgetting to get written IP assignments from co-founders. Get signatures before you incorporate. Employees and contractors need IP agreements too. 4. Yes, you need to budget for this. Filing, maintaining, and enforcing IP rights costs money. But it’s cheaper than losing your IP to a copycat (or co-founder lawsuit). Prioritize your core innovations. Protect what makes you different. 5. Start with an IP audit  What’s protectable? Logos, brand names, techniques, code, products. Check for conflicts before you go to market. Research your competitors — don’t fly blind. Your business can’t grow on a cracked foundation. Your ideas are the heart of your company. Protect them like it. What's your biggest IP concern right now? Drop it below and let's problem-solve together. P.S. Don't wait for a cease and desist letter to start thinking about IP. By then, it’s probably too late.

Buyers Don’t Just Buy Revenue—They Buy Moats. When a buyer evaluates your business, they’re not just looking at cash flow. They’re asking: “What makes this business hard to copy?” If your advantage isn’t protected, it’s vulnerable. ➤ It can be copied. ➤ It can be diluted. ➤ It can be stolen. That’s why IP protection isn’t a luxury—it’s a valuation lever. It tells buyers: “This business has staying power.” Here’s how IP maturity evolves across four key stages: 🔻 Stage 1: No Protection (Difficult to Sell) No trademarks or copyrights. No IP assignments. Brand names, content, or code are exposed. 🛡 What to do: • Identify key IP (brand, product names, content, tech) • File a trademark for your core brand ASAP 🟠 Stage 2: Inconsistent Coverage (Exposed but Sellable) Some IP protected, some not. Docs are scattered. Rights unclear. 🛡 What to do: • Run an IP audit: what’s covered, what’s not? • Prioritize filings tied to revenue or visibility 🟡 Stage 3: Protected Core (Investor-Ready) Key brand assets and IP are registered and documented. 🛡 What to do: • Centralize all IP docs: trademarks, copyrights, filings • Make sure contractors assign IP rights (designers, devs, etc.) 🟢 Stage 4: IP Fortress (Strategic Buyer Magnet) IP portfolio is complete. Defenses are in place. Ownership is clear. 🛡 What to do: • Create an IP summary for buyer review • Document enforcement policies and domain controls Bottom Line: A business with strong IP protection looks unshakeable. A business without it? Easy to undercut—and easier to devalue. ➤ Want to know if your IP would survive buyer scrutiny? → Download our Free Sellability Checklist (Spot the gaps that could cost you millions.) #MergersAndAcquisitions #ExitPlanning #IntellectualProperty #BrandProtection #SellYourBusiness

One of my key resolutions for Tradespace this year is to strengthen our culture of IP — a culture where we’re all mindful about safeguarding our best thinking. While we may never file a ton of patents, I’ve seen time and again how fostering an IP mindset elevates nearly every aspect of a business: - Clarify Your Secret Sauce – Committing to IP forces you to pinpoint what truly sets you apart. Even if patents aren’t your focus, knowing your core innovations keeps your team laser-focused. - Heighten Competitive Awareness – An IP-driven mindset means staying informed about your competitors' innovations. This helps you identify threats and opportunities earlier, and respond more strategically. - Add Prioritization to Development – When you define which IP matters most to you, your engineering and product teams can focus on advancing the innovations with the highest impact. How to Get Started: - Educate your entire team, from engineers to sales reps, on what IP is and why it matters. - Formalize your commitment with a corporate IP policy (that includes trade secrets). Even if it’s not fully developed, start the conversation somewhere. - Streamline the process of capturing and assessing new ideas. AI-driven tools (like Tradespace) make it easier to track and protect innovations without adding busywork. IP isn’t just about patents…it’s about building a culture that nurtures innovation and differentiation. Beyond being a legal tool, it’s a set of practices that helps organizations create value and thrive. Because of its power, it’s something I’m doubling down on this year.