I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” every patent can add up to $1M to your startup valuation for investors, or for M&A exits (merger and acquisition).
The bad news is that patent trolls can squeeze the lifeblood out of innocent and unsuspecting entrepreneurs, as exemplified by the current mess around Lodsys patent No. 7222078. This patent holding company is charging infringement and demanding royalties from every app developer for the iPhone and Android, for a feature most agree has been in apps for many years.
To read the full, original article click on this link: Software Patents are Becoming a Tax on Innovation - Martin Zwilling - Startup Professional's Musings - Forbes
Author:Martin Zwilling
