In today’s highly competitive business landscape, intellectual property has become a valuable asset for companies of all sizes. For startups and small businesses, patents play a crucial role in protecting their innovations, establishing market advantage, and attracting investors. In this article, we will discuss the significance of patents in startups and small businesses and delve into the benefits they offer, along with the challenges and strategies associated with their use.

A patent is a legal document granted to inventors that gives them exclusive rights to their inventions by allowing a temporary monopoly on the patented innovation. An issued patent prevents others from copying, manufacturing, or selling the invention without permission from the patent owner. There are 3 different types of patents, including utility patents that cover new and useful processes, machines, compositions of matter, and improvements thereof; design patents that protect the ornamental aspects of a product; and plant patents for new varieties of plants.

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The Benefits of Owning a Patent as a Startup or Small Business

Starting a new business can be both exciting and challenging. Startups and small businesses often have limited resources and face stiff competition in the marketplace. Protecting your intellectual property is critical to your success. Patents are critical for startups and small businesses because of the legal protection they provide. Without a patent, competitors can easily copy or steal your innovative ideas, products, or processes. Patents provide a legal barrier to entry that prevents others from doing so. This allows startups and small businesses to maintain their competitive advantage and ensures that they can reap the benefits of their investment in research and development.

Patents also provide a legal remedy if competitors do infringe on your intellectual property. If a competitor is found to be infringing on your patent, they can be prevented from further using, making, or selling your invention. This ensures that your competitors cannot profit from your ideas, products, or processes. It also prevents your business from losing market share due to competitors using your ideas without permission. There are may ways to go about intellectual property infringement, but the most common is patent litigation. Check out our article what does infringement mean.

Patents can be used to demonstrate a startup or small business’s credibility in order to attract investors. Investors are more likely to invest in companies with strong patent portfolios due to the fact patents provide a level of security and demonstrate a business’s commitment to innovation. Investors want to know that the business they are investing in has a competitive advantage and is protected from competition.

Patents do just that, enhance market competitiveness. By protecting their innovative products and processes, startups and small businesses can differentiate themselves from competitors and gain market share. This advantage assists businesses in attracting new customers as well as retaining existing ones. The attraction of new customers allows startups and small businesses to expand into new markets. 

Another way patents assist in the expansion of a small business or startup is by providing the legal framework for licensing agreements and franchising. Patents can be licensed or sold to generate additional revenue streams for a business. This business expansion can be completed without having to invest significant resources or even needing to bring a product to market. Licensing agreements can be a significant source of income for startups and small businesses, particularly those in the technology and pharmaceutical industries. This supports startups and small businesses by growing their customer base while generating additional revenue streams. 

Important Tip: It is essential to carefully negotiate licensing agreements to ensure that you retain sufficient control over your intellectual property.

In conclusion, patents are critical for startups and small businesses. They provide legal protection, prevent competitors from stealing ideas, attract investors, enhance market competitiveness, expand into new markets, and generate additional revenue streams. It is essential for startups and small businesses to understand the importance of patents and to take steps to protect their intellectual property. By doing so, they can increase their chances of success in the marketplace.

How to Obtain a Patent in 5 Steps for Startup and Small Business

The patent application process can be lengthy and complex if one does not have a complete understanding of how it goes. Carson Patents has a 5-step process to submitting a patent application.

PATENT STEP 1 – Prior Art Search

Before diving into the patent application process, it’s crucial to conduct a preliminary search to determine if a similar invention already exists. During a patent search, we search to find any and all inventions similar and/or related to the invention you want to patent. There are over 100 databases and sources we look through to assess the novelty and potential patentability of your invention. 

PATENT STEP 2 – Patentability Study

Once a patent search is completed, a patentability study is conducted to evaluate whether the claims of an invention are patentable. In order for an invention to be considered patentable, it must be: 1. patent eligible subject matter, 2. useful, 3. novel, and 4. non-obvious. If an invention checks off all 4 patentability criteria, it is ready to be drafted into a patent application. For more information on patentability, check out our article what does patentability mean?

PATENT STEP 3 – Patent Application Writing

Drafting a patent application involves a lot of experience and knowledge of the patent application process. It includes the research, writing, and editing of the specification, claims, and drawings (figures) of an invention. There are many requirements involved in order to ensure a complete patent application is submitted. Meticulous attention to detail is necessary, so it is highly recommended to work with patent practitioner (patent attorney or patent agent).

Patent Attorney Writing the Patent Application

PATENT STEP 4 – Patent Application Filing

Once a complete patent application is written, it is time to file with the respective patent office. In addition to the patent application, filing requires forms to be submitted alongside the application. There are different necessary forms depending on the type of patent application being filed. Patent office fees must also be paid at the time of filing.

PATENT STEP 5 – Patent Prosecution

The fifth step to the patent application process is patent prosecution, which occurs once a patent application is patent pending. There are multiple possible parts to the prosecution of a patent depending on the patent application itself. An examiner at the patent office may issue an office action, which requires a timely office action response. Other possible actions that may occur during patent prosecution is the appealing of an examination decision, or the conduction of opposition, reissue, or reexamination proceedings.

Patent Attorney help Communicating with the Patent Office

5 Patent Strategies for Startups and Small Businesses

Startups and small businesses often rely on innovation to gain a competitive advantage in the market. Patents provide legal protection for your intellectual property, but filing and maintaining patents can be expensive and time-consuming. In this section, we will discuss time and money saving patent strategies for startups and small businesses.

1. Conducting a Patent Search

Before filing a patent application, it is essential to conduct a patent search to determine whether your invention can even be patented. Conducting a patent search can save you time and money by helping you avoid filing a patent application for an invention that has already been patented.

2. Filing Provisional Patents

Filing a provisional patent application can be a cost-effective way to secure a priority date for your invention. A provisional patent application establishes an early filing date for your invention and gives you 12 months to file a non-provisional patent application. Filing a provisional patent application can give you time to develop and refine your invention before filing a non-provisional patent application.

3. Prioritizing Patent Applications

Patent applications can be expensive, and startups and small businesses may not have the resources to file multiple patent applications simultaneously. Prioritizing patent applications can help you maximize your patent protection while minimizing costs. Consider filing patent applications for inventions that are most critical to your business’s success and have the most significant commercial potential.

4. Defending Against Patent Infringement Lawsuits

Patent infringement lawsuits can be costly and time-consuming. It is essential to monitor the marketplace for potential infringers and take action if you believe your patents are being infringed. If you receive a cease-and-desist letter or are sued for patent infringement, seek legal counsel immediately. A patent attorney can help you determine your best course of action and defend against infringement claims.

5. Using Patents to Negotiate Partnerships and Collaboration

Patents can be used to negotiate partnerships and collaborations with other businesses. Your patents can provide you with leverage in negotiations and demonstrate your business’s credibility and innovation. Consider using your patents to negotiate joint ventures, research collaborations, or licensing agreements with other businesses.

In conclusion, patent strategies are critical for startups and small businesses to protect their intellectual property, maximize their patent protection, and generate revenue. Conducting a patent search, filing provisional patents, prioritizing patent applications, licensing patents, defending against patent infringement lawsuits, and using patents to negotiate partnerships and collaboration can help you navigate the complex patent landscape and increase your chances of success in the marketplace. Startup business ideas should be protected in the small business vs big business game to level the playing field to the extent possible.

5 Case Studies of Successful Patents for Small Businesses and Startups

Patents can be a valuable asset for startups and small businesses. The following are 5 case studies of successful patents owned by startups and small businesses.

CASE STUDY 1: Peloton

Peloton, a fitness startup that provides interactive workout classes through its stationary bikes and treadmills, holds several patents related to its technology and user interface. One of its most significant patents (US Patent No. 9,745,077) covers Peloton’s leaderboard technology that allows users to compete against one another in real-time. This patent has played a significant role in Peloton’s success, as it has allowed the company to differentiate itself from competitors and create a unique user experience. Peloton’s leaderboard technology has become a signature feature of its platform, and the patent protection has prevented competitors from copying this feature.

CASE STUDY 2: Warby Parker

Warby Parker, a startup that sells eyewear online, has several patents related to its manufacturing and distribution processes. One of its most significant patents is US Patent No. 9,295,372, which covers a system for custom-fitting eyeglasses by taking measurements of the user’s face. This patent has helped Warby Parker maintain a competitive advantage in the market by providing an exclusive product and user experience. The company’s innovative approach to selling eyewear has disrupted the traditional eyewear industry, attracting customers drawn to their unique eyewear options. By securing design patents, Warby Parker was able to differentiate their products from competitors and establish a recognizable brand identity.


Nest, a startup that produces smart home devices, has several patents related to its technology and user interface. One of its most significant patents is US Patent No. 8,478,311, which covers a system for controlling a thermostat using a mobile device. This patent has been crucial to Nest’s success, as it has allowed the company to differentiate itself from competitors and create a unique user experience. Nest’s smart home technology has become a household name, and the patent protection has prevented competitors from copying its technology.

The ‘311 patent played a crucial role in Nest’s success as it enabled them to secure substantial funding and partnerships. Google recognized the value of Nest’s technology and acquired the company in 2014 for $3.2 billion, further validating the significance of their patented invention.

CASE STUDY 4: Fitbit

Fitbit, a startup focused on health and fitness wearables, revolutionized the way people track and monitor their physical activity. Fitbit’s success was underpinned by a robust patent portfolio that protected their technological innovations. One of their most notable patents (US Patent No. 8,187,182) covered the technology of their wearable device’s ability to automatically detect different types of physical activities. Their patented devices are equipped with sensors and advanced algorithms to provide users with insights on their fitness levels, sleep patterns, and overall well-being.

These patents not only safeguarded Fitbit’s technology but also served as a barrier to entry for competitors. The protection provided by their patents enabled Fitbit to dominate the fitness wearables market and attract a large user base. In 2015, Fitbit went public with a highly successful initial public offering (IPO), further demonstrating the value of their patented inventions.


Oculus VR, a small startup initially focused on virtual reality (VR) technology, transformed the way people experience immersive digital content and garnered significant attention in the gaming and entertainment industries. To protect their inventions, Oculus VR filed several patents related to their VR headset technology, including US Patent No. 10,754,602, which covered aspects of their head-mounted VR display. These patents helped establish Oculus VR as a leader in the virtual reality market. In 2014, Facebook acquired the startup for approximately $2 billion, further proving the importance of patent protection.

Case Studies Summary

These case studies demonstrate the importance of patents for startups and small businesses. Patents can provide legal protection for innovative products and technologies, help differentiate a company from competitors, and create a unique user experience. Obtaining and using patents can be a valuable tool for startups and small businesses looking to achieve growth and success in the marketplace. By taking a strategic approach to patent protection, startups and small businesses can maximize the value of their intellectual property and gain a competitive advantage in their respective industries.

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