EDIT: added more context below. Hardware startup, built a novel sensor mechanism. Investors asking about IP protection. Heard about provisional patents being cheaper. When does it make sense to file provisional vs going straight to full patent?
filed a provisional 3 years ago. never converted to full patent because we pivoted away from that tech. saved us $15K+. that's the real benefit — it's basically an option to file a patent, not a commitment
honest question: are patents even worth it for startups? I've heard big companies just infringe anyway and dare you to sue them with your $0 budget
Fair point. Patents are worth it when: (1) you're in hardware/biotech where copying is expensive anyway, (2) investors require it (common in deep tech), (3) you're building for acquisition (acquirers pay premium for IP), (4) you're in a space with contingency-fee patent litigators imo.
For pure software SaaS? Usually not worth it. Trade secrets + speed to market is better strategy.
From the other side: we got acquired last year and our 2 patents added ~$800K to valuation according to the acquirer's IP diligence. For hardware companies pursuing acquisition, patents pay for themselves 10x.