Successful Startups and Patents? 35
An anonymous reader asks: "Is there a strategy for software startups wanting to make it big with a product in this world of software patents? Particularly, how can a software startup, wishing to take its product to the international market, hope to compete with the large software companies and their armada of patents?"
"No matter whether or not the startup has an innovative product, a patent or two, a little or a lot of funds, it seems that if the large software companies decide that they wish to crush them with law-suits regarding patent infringement, valid or invalid, they can tie them up long enough in court to drive them out of business (via bankruptcy, or to cause them to lose any market lead they may have had). Can anyone suggest a strategy (or discussions on strategies) that could help a software company thrive, without playing the same game? Or are those days over — and the current crop of software companies are so well entrenched (thanks to the patent system) that there is no hope for a a new player?"
Re: (Score:2)
If you would like to know about patents elsewhere, I'm sure that Googling EU+Microsoft+Patent will get you enough bedtime reading for the rest of the month.
Totally (Score:4, Funny)
There're tons of strategies a small company with a patent portfolio could pursue.
Sincerely,
Darl McBride, SCO [sco.com]
Re: (Score:2)
Layne
Financial Soundness (Score:2, Informative)
Back in the day... (Score:1)
I worked at such a company for 2 years, back in the 1980's.
Paul Graham: Why Not Not Start a Startup? (Score:2, Informative)
A bit off-topic but worth having look at it.
Why Not Not Start a Startup?
http://paulgraham.com/notnot.html [paulgraham.com]
(March 2007)
He discusses about reasons why people don't start a startup and tries to explain that most of those reasons should be ignored.
Re: (Score:1, Informative)
Actually an essay of his that is more on-topic would be:
Are Software Patents Evil? [paulgraham.com]
Here are your options (Score:3, Insightful)
Find something at least 17 or 20 years old and clone it. Minimize any changes that aren't old or obvious. (color pong anyone?)
Build using existing components to reduce risks. (API's, scripts, etc)
License from someone else's portfolio. (Unisys GIF patent)
Learn about patents, research them like mad, create a product that doesn't infringe (PNG)
Create an invention, patent it, license it to others (like NTP)
Pay someone else to create and accept liability (can't think of a good example of spec developed software here).
Build something and cross your fingers (RIM: Blackberry)
Build and sell where patents don't apply.
Am I forgetting any? If you don't have money, want to create a unique product, and don't have faith in crossed fingers, you're going to have to learn about patents or restrict your market pretty heavily.
Re: (Score:1)
If you want some tips from a lay-person, let me know and I'll post a few.
Userbase (Score:3, Interesting)
As an expert in this (Score:4, Funny)
Defeatist (Score:1, Interesting)
Patents and their applications are published. It is this publication more than the grant of the monopoly itself which drives innovation. By looking at how your competitors do things you can learn what they do right and what they do wrong.
If they do everything right and you can't think of a better way, consider getting a license from them.
If they do everything wrong and you can think of a better way, bingo! There is the nub your business idea.
Do not bury yo
Re: (Score:2)
What if the concept behind it is right but the existing implementation sucks both in cost and performance? Why should I not be able to compete in such a situation? Remember, my ability to compete depends on the patent owner's willingness to license it to me. This is why software patents make no sense at all.
Re: (Score:2)
Oh The Legal Penalties!! (Score:2)
And then when the judge finds out that you did actually research patents, the patent owner has you by the short curlies.
Damned if you, damned if you don't.
Country without software patents (Score:1)
You can always emigrate to a country without software patents...
Do without, but read legalese (Score:2)
That said, most tools, I get from open source. I carefully read the licenses and respect them precisely. GPL is good for tools, as long as it's not on the end-user computer. LGPL has the same limitation. ZLib
Re: (Score:1, Insightful)
I would feel more comfortable taking this route if:
1) I believed I could understand the patents, their implications, how they would be interpreted by lawyers and judges etc. etc. I think I quite smart but I am not an experience patent lawyer (the sue-ing or defend-ing kind).
2) If I could find a patent lawyer who we could afford - I'd be willing to spend quite a bit - AND who could really understand the technology behind o
Plan for the problem (Score:2)
However, when that fateful letter eventually arrives you should have an idea what you want to do. There are 3 reasons why someone would get you into a patent suit:
(1) you're a threat to them, and they want to shut you down
(2) you're making a profit and they want
JFDI (Score:1)
If you want to run a business, then put in the effort to figure out how you'll make a profit. Beware your desire to build something new because it might not be new at all. Take some time up front to research your idea. Lots of guys hunker down for 6 months or more creating something t
Re: (Score:1)
Stand up, and fight back (Score:2)
The fight back against big brother lawsuits, be able to prove invalidity, and after the discovery process shows that, file charges of barratry against the lawyers. Lawyers are only confrontational when it comes to clients. When it's their own ass on the line, they scurry like cockroaches when the light is turned on.
Graham's strategy re: Microsoft (Score:2)
His take: http://www.paulgraham.com/microsoft.html [paulgraham.com]
Mine: http://www.networkworld.com/community/?q=node/135