Blue Biofuels Inc (BIOF)

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Article - Got a Patent? Sell the Company!

I Thought I Understood Patents

When I was CEO of my first technology company I thought I understood how patents worked. But it was only after managing a hedge fund for a few years that I began to appreciate the risks patent holders face.

Many entrepreneurs think that the real test of a patent’s value is whether or not it will be granted. But in my experience the real value isn’t known until you’ve spent years, and millions of dollars, defending that patent in your first infringement case.

It Takes Millions of Dollars to Defend a Patent

The legal processes associated with a patent can easily take a decade from beginning to end. If you file for a patent under the slow track method, you may wait two or three years just to get a patent granted. Once your patent’s granted, you may enjoy several months, or possibly a year or two, before someone infringes or challenges it. The ensuing court battle can easily take another two to five years. And if there’s an appeal, you may have to finance your legal team for another two to five years.

I’ve asked several patent attorneys what it would cost to go to trial to defend a patent against a major company.

None of them has given me a definitive answer, but they did say it could cost a $1 million just to start the process. Depending on the complexities, and how long the case drags on, it could cost as much as $10 million in legal fees to finish the lawsuit.

Even the Strongest Patents Can Lose Their Case...

http://www.exits.com/blog/got-a-patent-sell-the-company/