Dear hustlers, founders, operators and visionaries,

There are many factors which make up a sustainable business with long-term success. While much attention is directed at Sales and Product, there is an area of business which is outside our daily focus, yet a crucial factor to generate sustainable business value: patents.

It is the kind of topic you want to get right, but just don’t know how. We therefore sat down with Bastian Best, a European and German patent lawyer with over 15 years of experience in the field. He has recently been named one of the 50 Leading Tech Voices by the European Patent Office and has advised numerous startups on building patent portfolios. Exclusively for our newsletter subscribers, Bastian has shared additional insights below.

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How to build a patent strategy

What you will get out of this episode

In our conversation, Bastian shares:

• why founders usually file for patents too late

• how patents can both defend business value and generate it

• what to do when faced with a patent infringement case

• how to get your Freedom-to-operate checks right

• and much more!

Our main take away’s

1. Patents and the public domain are two sides of the same coin: Once a new technology has been patented, it is part of the public domain and not a secret anymore. Equally, once the concept of a new technology has been shared with the public domain, it cannot be patented anymore. This dynamic heavily affects how to marry secret product developments with defending the value of these developments through patenting.
   

2. It is all about timing: A patent is granted on something novel, which hasn’t existed before. An innovative solution to a problem a student writes about in a paper may affect the ability to patent this solution later on. Timing of patenting is key to successfully build a patent portfolio for the long term.
   

3. Patents are crucial assets for a business: Patents can be crucial indicators to attract funds from investors, especially in patent-heavy industries like robotics or life sciences, as they are able to both defend core components of your business and also help generate value out of these.

4. Trust into your own knowledge of the market: As Founder and Inventor, you are the best expert in your own market and domain. Trust this expertise when approaching research on patents of competitors, or the timing to submit a new technology for a patent approval.

Additional material on the topic

• Why your startup needs a patent strategy, by Dan Teodosiu, Dave Kellogg and Andrew Wigfall

How to reach out to Bastian

• Bastian Best on LinkedIn

• https://bestpatent.eu/ - Bastian’s newsletter

• www.fundingmagnet.de - Bastian’s AI-powered coaching program that helps European founders achieve their first patent-pending status with just a few hours of time.

Exclusive from Bastian

What are some cost-effective ways for early-stage startups to build a defensible patent portfolio without breaking the bank?

Find a patent attorney who understands your unique needs as a startup founder. An inexperienced patent attorney will jump right into the nitty-gritty details of your technology. A good patent attorney will ask questions about your business model, your technology roadmap, and your funding schedule to build a strategy that aligns with your goals. Bonus points if the patent attorney uses AI to streamline the process.

How can startups use patents as part of their fundraising strategy to attract investors, and what specific patent-related information do investors find most convincing?

It's about minimizing risk for investors. They want to know their investment is protected. The perfect “patent pitch” has three elements:

1. Clear ownership of your IP: Especially crucial for university spin-outs, where ownership can be complex! If you build your business on technology you don’t own, this can be a ticking time bomb.

2. Freedom to operate: Demonstrate that you know your industry’s patent landscape and that there are no roadblocks in the form of other companies’ patents.

3. Proactive patent portfolio building: Show that you're strategically securing exclusive rights.

This provides a clear competitive advantage, builds confidence, and reduces the investor’s perceived risk.

What should startups do if they realize too late that their innovation was publicly disclosed before filing for a patent? Are there any salvageable options?

Don't panic, but act fast! Contact your patent attorney immediately. Together, you'll need to identify exactly what was disclosed and what aspects of your innovation remain 'novel' and can still be protected. In some countries, like the US, you have a one-year grace period after public disclosure to file for a patent. Even in stricter regions like Europe, options like the German utility model might still be available within six months. Time is of the essence!

What’s your advice for founders on navigating patent trolls or protecting themselves from potential IP litigation early in their journey?

Patent trolls are actually less of a concern for early-stage startups. They are after money, and early-stage companies generally lack the revenue to make them attractive targets. By the time your company makes millions, you’ll also have the resources to fight back if you need to.

The bigger threat is actually your competitors. Unlike patent trolls, competitors have a strategic interest in keeping you out of the market. In patent-heavy industries, the most effective long-term strategy is to proactively build your own patent portfolio. This gives you leverage to negotiate cross-licensing deals.

Can you share a real-world example (anonymized, if needed) of a startup that strategically used patents to overcome a competitive or legal challenge?

Take the example of Jabbr (https://jabbr.ai/), a Copenhagen-based startup revolutionizing combat sports with AI-powered real-time video stats. By securing a US patent for their innovative DeepStrike AI model, they were able to confidently approach major sports television broadcasters and secure exclusive deals. As their founder, Allan Nielsen, puts it: 'In the fast-paced tech world, speed is key. With our first US patent, we were able to launch extremely quickly thanks to Basti's support. This gives us the confidence to establish our technology on the market swiftly.' Jabbr's story highlights how patents can be a game-changer for startups, enabling them to secure partnerships, accelerate growth, and solidify their market position.

How do startups decide where to file patents when operating in multiple regions? While global coverage is ideal, it’s costly to pay patent fees in every country. What’s your advice?

Don't feel pressured to cover the entire world with your patents from day one. Start with an early initial patent filing on your home turf, then work with your patent attorney to strategically expand your coverage as your business grows. There are ways to delay costly decisions about target countries for up to 2.5 years, giving you flexibility and time to assess your needs.

Talk to you next week! Until then, let’s continue the conversation on LinkedIn, X, Instagram and YouTube!

🫶🏼 Melanie & Christian

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