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I always advisesoftware startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. Yes, the software patent process is a mess. I say this with conviction even after I survived the process, and have a software patent pending. Software technology changes rapidly.
For a software startup, a patent can be the intellectual property providing the key competitive advantage, or it can be an expensive non-defensible bureaucratic nightmare -- or both. Some argue to simply eliminate software patents, while others put their hopes in U.S. Patent offices can’t keep up with software technology.
This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. In that article I linked to I outline the difference between gross margin & net margin. Valuation.
Yet, despite his exceptional courtroom theatrics, you would be foolhardy to hire good old Johnnie to review your software cross-licensing agreement. free weekly Infochachkie articles! Your lawyer is a trusted advisor, but in the end, you run your business, your lawyer does not. Substance Over Form. They make mistakes.
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