One in three US startups and as many as 70% of venture capital firms face assertions of patent infringement, according to a new report conducted by the National Venture Capital Association (NVCA) and the University of California Hastings.
The sector with the most disputed patents is IT, followed by life sciences and clean tech, and can prove a costly battle for startups to fight. The NVCA reports that the average cost for defending a patent can cost a company on average $100,000, with some cases running into millions of dollars. The process often lands a crippling financial blow on cash-strapped startups, with 60% of startup chief executives reporting a moderate-to-high negative impact on the company’s operations.
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To read the original article: Patent trolls under innovation bridge · Articles · Global University Venturing
