Things Inventors Should Know (inventor toughlove)

Inventors beware: at this law firm we have seen inventors go broke, go bankrupt, lose their house, lose their marriage, lost everything. In some cases the market-indicators and flaws in their product were very apparent early on.  Don't be another statistic!

Another myth\request we often get: "I want my patent to exclude others from __________________". This is probably not the best way to start a patent process. A typical patent litigation will cost a minimum of half-million dollars. Most of our clients could never afford this. Thus, even though we get someone a patent, enforcing that patent that way will likely cost more than what our clients could afford.

There are law firms that take patent cases on contingency, but these are difficult. Such law firms may only take the case when its a sure slam-dunk, e.g. where there will be no resistance, and/or the other side has already admitted culpability and is seeking settlement terms.

Instead, think of a patent as a shield, not a sword. As a defensive weapon, not an offensive weapon. As insurance, in case you get attacked by others. And finally, most important, as a way of convincing investors that you truly own and can retain rights to a certain product, business model, or technology. Mark Cuban often asks this on Shark Tank.  That is, Mark Cuban may as "is it proprietary?" and "do you own it?" While patents are by no means an assurance that anyone owns anything, patents can be a more valid indicator than other metrics.

Finally, always bear in mind, there is often a mis-match between what an inventors wants, and what the Patent System offers. The two often do not have the right overlap.

This section is Titled "Truth About Patents" for several reasons. The main reason is that patents are so widely misunderstood. Many patented inventions never make a dime. Meanwhile, many unpatented inventions make a great deal of money. Do not equate patents with commercial success!

Next, when the marketplace has sent you a clear message, you need to listen! If the world wants your invention, they will tell you! More importantly, if the invention is not selling, not scaling, not penetrating the marketplace, inventors need to heed this message!

Know when to fold. Know when to admit you have made a mistake, and this invention does not have legs, is not sellable. Its nothing to be ashamed of.   This problem exceeds all others, by a Long Way 

The real shame is when inventors insist on staying "all in", and spending their way into bankruptcy or at least major financial difficulties. At this law firm, we see this problem more than all other problems combined.

Don't go by the traditional metrics (shown above). These are often  wrong, and do not properly reflect the true authentic benefits of an incubator or accelerator.

Typical business metrics for Incubators and Accelerators are often misleading and inaccurate, and not an indicator of success or advancement. One example is Theranos, who had >135 Issued Patents, all of which were invalid and worthless (nobody read them). Equally important to what false-metrics incubators do track, are the important data-metrics (often easily available) that they don't track.  See above.

Have you worked with an Incubator or Accelerator? Was it helpful? Were your interests properly aligned with theirs? How was that Incubator or Accelerator funded, and did they find you resources that you could not have found yourself?

Did any of you locate your business inside of a WeWork?  Did this help you? Did WeWork provide any advantages that you could not have found via other means?