Startups

What Startup Owners Need to Know About Patents

  • 4 min Read
  • July 3, 2016

Author

Kanika Sinha
Kanika Sinha

Kanika is an enthusiastic content writer who craves to push the boundaries and explore uncharted territories. With her exceptional writing skills and in-depth knowledge of business-to-business dynamics, she creates compelling narratives that help businesses achieve tangible ROI. When not hunched over the keyboard, you can find her sweating it out in the gym, or indulging in a marathon of adorable movies with her young son.

Table of Contents

If your startup involves unique products or inventions, it’s a good idea to make sure your patents. are in order

Without a patent, your startup runs this risk of losing the product or idea to a competitor. You want to do everything you can to obtain intellectual property protection.

 

What is a Patent?




 

A patent is issued by the government and gives you exclusive rights to a design, process or new invention for a specified period of time.

With a patent you are protected from others stealing your idea.

 

How Do You Know It’s Patentable?




 

Once you’re considering going live with your product, you want to find out if it is patentable.

Here are a few questions to ask on the United States Patent and Trademark Office’s (USPTO) website to learn if your idea is patentable:

  • Can I apply for a patent?
  • What can and can’t be patented?
  • How do I know if my invention is patentable?
  • How long will my patent protection last?
  • How much does it cost to get a patent?

You also want to conduct a search to see if your invention has already been publicly disclosed (patented). To do this, perform a patent search at the Public Search Facility.


 

You Can’t Patent an Idea




 

Unfortunately, you can’t patent an idea. It’s a bit more concrete than that.

Your idea must be structured as a tangible asset or design. In other words, you have to have a prototype or detailed descriptions and drawings. These sketches are vital to your success.

 

Different Types of Patents




 

While patent rules differ from country to country, most have different types of patents you can apply for.

Entrepreneurs and inventors in the US can look at patents in three areas: utility patents, design patents and plant patents. Let’s look at each one separately.

Utility patent: Issued for the invention of a new useful process, machine, manufacture or composition of matter.

Design patent: Issued for a new, original and ornamental design embodied in or applied to an article of manufacture.

Plant patent: Issued for a new and distinct, invented or discovered asexually reproduced plant.

 

First to File Wins




 

Patents go to the first inventor to file paperwork for them. So, if you and a competitor are working on similar products, the first to file comes out the winner.

This is an important aspect of patents for startup owners to pay attention to.

What this means is that you don’t want to delay applying for a patent until after you’ve developed your product and assessed its commercial potential.

Don’t let time sit. Don’t run the risk that someone else will beat you to it. Shell out cash for your patent application well before you know if your invention is marketable.


 

Patents Cost




 

Determining the exact cost of a patent depends on the invention. For exact numbers, you can visit the USPTO Fee Schedule.

Basic filing fees start at around $280, with an additional search fee of $500 or more, examination fees of several hundred dollars, and lawyer fees that can be in excess of well over $5,000.

Bottom line – expect applying for a patent to cost upwards of $10,000 and more.

In addition, you can fast track your patent for a fee. To get it processed in one year, you can pay an extra fee of $2,400 for businesses with less than 500 employees or $4,800 with more.

Most patents take three years to process.


 

To Conclude




 

One of the biggest pitfalls for many startup owners is misunderstanding the patent process and not acting on it soon enough.

The final things we want to mention when it comes to patents are:

  • Do a patent search.
  • Create confidentiality agreements so word doesn’t leak out about your invention.
  • File first.

Lastly, when contemplating filing a patent, be sure to seek out professional advice. The process is complicated, and patent guidelines and laws are constantly changing.

Startup owners can stay abreast of the latest news by checking in the USPTO website and the World Intellectual Property Organization.

Finally, don’t forget to file patents as soon as possible so you don’t risk losing your patent application to a competitor.

Are you a new startup ready to expand to a new country? Are you looking to get your new business off the ground abroad and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your finances, payroll, HR duties and more to us. Contact Escalon today to get started.

Image: SpaceX

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Small Businesses

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact 

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact  In a world where every dollar must count,...

Read More
People Management & HR

2025 Employment Law Updates: What to Know

As we step into 2025, businesses across the country face several important updates in labor laws and employee benefits. Staying...

Read More
Startups

5 Signs Your Startup Needs an Outsourced CFO  

5 Signs Your Startup Needs an Outsourced CFO   Startups often operate with lean teams, but as they grow, financial complexity...

Read More
Leadership & Growth

CG Startups: How to Keep Costs Low While Scaling Operations 

Consumer Goods Startups: How to Keep Costs Low While Scaling Operations  Scaling a consumer goods startup requires a careful balancing...

Read More
Press Releases

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader 

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader  In a strategic move that...

Read More
Taxes

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant 

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant  For startups incorporated in Delaware, staying compliant is...

Read More
Taxes

Tax Planning for Startups: Preparing for Your First Tax Filing

Tax Planning for Startups: Preparing for Your First Tax Filing as a Growing Business  For many startups, the first major...

Read More
Taxes

Unlock Tax Savings with the R&D Tax Credit

As a startup, managing cash flow and minimizing expenses are critical to your business's survival and growth. One often-overlooked opportunity...

Read More
Accounting & Finance

1099 Compliance for Early Stage Startups

1099 Compliance for Early Stage Startups As your startup grows from seed funding to Series A, B, or C, you’ll...

Read More