Investors love patents because they not only offer protection against imitation, but often also promise better negotiating positions and higher profits. gateway Magazine Patent attorney Axel Karl presents seven practical tips on how startups can cleverly use patents for their success, avoid problems caused by third-party patents, and keep costs under control.
1. Is a patent even worthwhile?
Rule of thumb: A patent makes economic sense if the expected additional profit from the monopoly position exceeds the costs of filing and maintaining it.
For example, companies must budget for costs in the order of €7,000 for a German patent application in the first five years, and even €14,000 or more for European patent applications. The additional profit generated during this period should therefore at least cover this amount.
2. Startups: Money from the state
Since 2015 there has been the “WIPANO"Federal government program. The subsidy amounts to 50 percent (up to a maximum of €16,000). The prerequisite: The company is a small or medium-sized enterprise (SME) and has not filed a patent application in the last five years. Consulting firms also offer support in completing the formalities.
3. Free research databases
Inventors are often not alone with their idea. Free research tools offer European Patent Office or the German Patent and Trademark Office (DPMA)The German Patent and Trademark Office (DPMA) (with a search room in Munich) and patent information centers also offer free, expert-supervised searches.
4. Design protection as an alternative
If the external appearance is an important aspect of the product, a registered design can be an inexpensive supplement or alternative to a patent. Without a lawyer, there is Design protection in Germany starting from 60 euros and a European design (EU) for an official fee of 350 euros. Important: A correctly prepared list of goods and services.
5. Include customer benefits in the patent claims!
A patent becomes valuable when the patent claims describe those features of the product that customers particularly value.
Or to put it the other way around: If the startup protects features that are of little or no relevance to its customers when making their purchasing decisions, then patent protection often does not make economic sense.
6. Start small: National initial registration
More than 50 percent of the total costs of a patent family depend on the number of countries in which applications are filed. However, it is usually still unclear how successful the product will be and how realistic the chances of being granted are. Therefore, it is worth considering filing a national application first, for example, in Germany.
With the initial notification from the Office, startups can roughly estimate their chances of patenting. They can then file subsequent applications in additional countries within twelve months of filing. Founders can optionally extend this period to 30 or 31 months by filing a centralized international patent application (PCT).
7. Keep an eye on competitor patents
Make sure that the product does not infringe any third-party patents. Otherwise, you risk trouble in the form of warnings, injunctions, and claims for damages. Law firms offer FTO analyses (freedom to operate). Startups can use newly published patent applications to automated and free of charge by email be notified.
Axel Karl is a patent attorney and engineer at X-IP With more than 15 years of industry experience, most recently at Cisco Systems, he primarily supports young technology companies in their market entry with patents, designs, and trademarks.
The article appeared in the current issue of gateWay.
You can also find more exciting news about startups and the technology-oriented startup scene in the previous gateway issues, the magazine from the gate – Garching Technology and Startup Center GmbH.
