Tag: Karina Edmonds

“Patent costs are sunk costs.” – Karina Edmonds

The value of an idea is in the ability to solve a problem in a market where people are willing to pay for it.  Bigger problems in bigger markets are more valuable.

Patents are barriers to entry.  They are validations.  They have future value and they tend to be check boxes for investors.  You need to have them but in the end, they are pieces of paper.  Expensive pieces of paper that fit nicely into a filing cabinet.  Valuing patents can be tricky and justifying value with the cost of the patent process is misguided.

Investors are not interested in covering patent cost because it does not add value to the company.  Only protection, like insurance.

The value of an idea goes up when it’s proven in a market.  That’s where the focus should be and that’s what gets funded.