High Costs Keeping Software Startups from Filing Patents



A recent survey from the University of California, Berkeley found that, in fact, the opposite trend is appearing among these types of companies. The largest reason? Cost.

According to Berkeley law professor Pamela Samuelson, over 1,300 entrepreneurs in the tech startup space - including software, hardware, biotech and medical tech - participated in the university's recent survey about patents. Among the survey's most fascinating results is the finding that a majority of software startups are not filing for patents.

According to the results, the two largest reasons these companies had forgone filing both relate to the costs of obtaining and enforcing software patents. 28% rated the cost of acquiring a patent as the most influential reason for not filing - more than twice the 12% that said enforcement was the largest detractor. Respondents reported an average costs of $30,000 for obtaining a software patent - a cost many small companies are choosing to avoid. 7/21/2010