What is the return on investment for patents?

Question

I have read that for many start-up companies, patent protection is usually not worth the cost. Is this true? Wouldn't a patent be a prerequisite for VC funding?

We are an IT start-up based in Japan. Our core business is the development of IoT Devices for healthcare applications. Thank you for you insight.

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Answers: 3 public & 0 private

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Other Consultant

I agree with Brian and just want to add that many patent professionals (attorneys, agents, and consultants) offer a free initial consultation. I recommend talking to one with some familiarity in your industry. I also agree with Ashutosh that the best approach is to have a provisional patent application filed prior to taking to investors, especially since Angel Investors rarely sign non-disclosure agreements (at least in the US). However, I strongly recommend hiring a patent professional to assist you with your provisional application. Having worked for clients looking to purchase patents for their portfolio, I have seen tens of thousands of patents that may have been good inventions, yet the patents were worthless due to the way they were written. Other patents were purchased for much more than the original owner spent on development and prosecution.

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