Forbes: Why You Want IP For Your Startup, by Bijan Khosravi
This post originally appeared in Forbes on December 1, 2014.
If you want to build a successful startup, you need intellectual property. That’s right, I said IP, not app – the dreaded buzzword that’s taken over all of our lives. Driving directions, coupons, magic 8 balls…? We can’t live without them, but do we need to start a business with them? The answer is no. If you’re an entrepreneur and you want to attract smart money, you need to acquire IP in order to be successful in this effervescent app startup world.
First of all, the businesses behind many of these apps are rooted in the service industry. Sure, companies like Groupon and Airbnb bloomed when they were launched, but soon there will be more competitors showing up with the same product and offering it in different ways – ultimately taking business away and leaving these companies less valuable. Why are they so vulnerable to the nature of competition? Because they don’t have the power to protect their products with a patent.
And that’s key to creating a successful business.