Protecting Innovations from Imitation

One clause cost a Stanford founder billions. In 2013, Reggie Brown’s Stanford roommates froze him out of Snapchat, the app built on his original idea for disappearing photos. He eventually forced a $157.5 million settlement, but missed out on billions as Snapchat’s valuation skyrocketed. What was the clause that decided it all? The IP clause. Here's a 2-tier strategy for protecting IP in deals where your innovation is on the line: #Tier 1: Define what you’re giving away (and what you’re not) Most IP clauses read like shopping lists where everything gets thrown in the cart. Example: "Client shall exclusively own all right, title and interest in and to all Deliverables, including all Intellectual Property Rights therein." Risk: That single sentence can include your pre-existing IP, your proprietary methodologies, your trade secrets, and even ideas you develop after the contract ends. The Snapchat parallel: Brown claimed original ownership of the core Snapchat concept, worth millions at the company's $70 million valuation. The dispute arose because there were no clear agreements about who owned what when the idea first emerged. Better approach - The IP Inventory: Before you sign anything, create four buckets: ▪️Background IP: What you owned before this relationship started ▪️Foreground IP: What you'll create specifically for this project ▪️Derivative IP: Improvements to your existing IP using their input ▪️Joint IP: True collaborative creations requiring both parties Protective language you could use: "Company retains all rights to Background IP. Client receives exclusive license to Foreground IP developed solely for this project. Derivative IP improvements revert to Company with Client receiving perpetual license for their use case." #Tier 2: Negotiate value, not just rights The smartest IP clauses acknowledge that valuable innovations deserve ongoing compensation, not just upfront payments. Traditional model: You assign IP for a flat fee. They commercialize it for billions. You get nothing more. Value-sharing model: IP assignment includes revenue participation, milestone payments, or success fees tied to commercialization. A good framework to use: ▪️For low-value implementations: Flat assignment with reversion rights ▪️For medium-value innovations: Assignment with 2-5% revenue sharing capped at 3x development costs ▪️For breakthrough innovations: Joint venture structure or equity participation Industry-specific considerations: ▪️Software: Focus on derivative work definitions and license-back provisions ▪️Hardware: Emphasize manufacturing and improvement rights ▪️Services: Protect methodology IP while allowing client-specific customization ▪️Content: Separate creation rights from distribution rights Don’t let “standard” IP clauses sign away your future. Contracts don’t just govern today’s deliverables, they decide who owns tomorrow’s upside. #IntellectualProperty #ContractManagement #InnovationProtection

Patents don’t make you untouchable. Speed does. 🏎️   Thankfully, I avoided wasting money early on this. Back in 2016, I invented the thinnest, most protective phone case on the planet for my company Mous. A real breakthrough. My first thought? “What if someone copies this?”   No problem, the patent system exists to protect innovation, right? Debatable...   We looked at the market. We looked at our competition. And we made a decision that went against every instinct I had as an inventor.   We didn’t file a patent.   Here's why: ▪️ Patents don’t stop copying: you don’t get automatic protection. You get the right to spend years in court proving someone copied you. ▪️ Most investors don’t fully grasp patents: 90% ask if you have one. 99% don’t understand if it’s actually enforceable. ▪️ Patents are a gamble: A patent examiner (a human) has to decide if your idea is unique. If they miss something, you could spend years and £££ only to find out your patent isn’t even valid. Instead of a patent, we focused on speed - building the brand, dominating the market, and making it impossible for knockoffs to catch up.   It worked!   Five years later, fake versions started appearing. But by then, we were big enough to fight back. And my mantra: if you're getting copied, you're doing something right.   Lesson learned: If you’re building hardware, ask yourself: Do I need a patent, or do I just need to move faster? 🤔   Would love to hear from other founders and entrepreneurs on this. Did patents help you, or was it just expensive paperwork?

Most startup founders hear "protect your IP" and rush to file patents. But what if publishing your innovations, not patenting them, is actually the smarter strategic move? I'll be honest: This article took nearly two months to write, compared to my usual publication timeline which is much shorter. As a patent attorney, my instinct has always leaned toward patenting inventions. Writing a piece that challenges that orthodoxy required me to sit with some uncomfortable truths about when patents actually serve startups, and when they don't. In this issue, I explore defensive publishing: a counterintuitive IP strategy that prevents competitors from patenting your territory while preserving your freedom to operate. I share real conversations with founders who've learned expensive lessons about patents filed without strategy, and walk through the decision framework every tech startup needs before choosing between patents, trade secrets, or strategic disclosure. If you're building in AI, robotics, or biotech, this isn't just about saving money, it's about architecting the innovation landscape on your terms. #IPStrategy #Startups #DefensivePublishing

I'm a big believer in innovation and supporting startups that take huge risks to bring their unique ideas to life. What many people don’t realize is how much it takes to go from a simple idea to a prototype, then through production, and finally shipping a product—and that’s just the beginning of the journey. So when I see big tech blatantly copying a startup’s innovation, it really puts me off from supporting the rest of big tech's portfolio of products. As a startup, you pour countless hours, ingenuity, and resources into solving a problem, only to have big tech copy your work. It’s not just frustrating; it’s a reminder of the uphill battle founders face to protect what they’ve worked so hard to build. That's why I respect so many of the challenger brands out there. Fortunately, startups have tools at their disposal to fight back. At RYSE, patents have been a cornerstone of our strategy to protect our technology. For years, we’ve used Amazon’s APEX program to protect our IP. It’s a fast, cost-effective way to block copycats from selling on Amazon—much quicker than going through the courts. The idea is simple: distribution is defensibility. While you can’t stop someone from copying your product, you can stop them from selling it. If you can prevent knockoffs from reaching your customers, you then become the go-to solution, giving you more control over pricing and distribution, while solidifying your market share and strengthening your brand’s position. For those just starting out, here’s my advice: you don’t need to spend thousands of dollars to begin protecting your idea. You can file a provisional patent yourself for just a few hundred dollars. Tools like ChatGPT can even help you draft your initial filing, making the process faster and less intimidating. It’s a small step that can have a big impact on the future of your startup. At RYSE, patents are vital to protecting what we’ve built. In 2024, we expanded our IP portfolio by filing patents for the RYSE SmartCurtain and RYSE SmartBlinds, and we plan to continue filing more to solidify our position. To my fellow founders: Don’t overlook your IP. Start right away, file for provisional patents, and use resources like Amazon's APEX program. Protecting your ideas is one of the simplest and smartest moves you can make for your business and your future.

𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗽𝗮𝘁𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝗮 𝗱𝗲𝗳𝗲𝗻𝘀𝗶𝘃𝗲 𝗻𝗲𝗰𝗲𝘀𝘀𝗶𝘁𝘆 𝗮𝘁 𝗯𝗲𝘀𝘁. 𝗥𝗶𝗴𝗵𝘁? Here's my contrarian view: Strategic patent protection for software isn't just defensive—it's a competitive advantage that differentiates growing companies in tangible, valuable ways. For nearly 30 years, I've watched software companies leverage patents to raise investment, deter competitors, maximize acquisition value, and create cross-licensing leverage. Done strategically, patents become assets that actively drive business outcomes. Here's what strategic patent protection actually delivers: • 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗰𝗼𝗻𝗳𝗶𝗱𝗲𝗻𝗰𝗲. Sophisticated investors evaluate whether you're building defensible technology. Patents signal protectable intellectual property, not just code anyone can replicate.    • 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝘃𝗮𝗹𝘂𝗲. Acquirers pay premiums for strong IP positions. A well-constructed patent portfolio can meaningfully impact valuation in exit discussions.    • 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗱𝗲𝘁𝗲𝗿𝗿𝗲𝗻𝗰𝗲. Patents create space for your innovation to gain market traction before competitors simply copy your approach.    • 𝗖𝗿𝗼𝘀𝘀-𝗹𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗲. If approached with patent claims later, having your own portfolio creates negotiating options instead of one-sided licensing demands. And here's where FTO comes into play: strategic patent value is diminished if you're infringing others' patents. FTO and patent prosecution work together to create defensible competitive advantage. Consider two hypothetical AI startups with similar technology: • 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗔 views patents as unnecessary expenses. When raising Series B, investors ask about IP protection. The founders have no answers. When acquisition interest emerges, they have nothing proprietary to differentiate their technology. Their valuation reflects commodity technology. • 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗕 invested in targeted patent protection on core algorithms and conducted FTO analysis early. During fundraising, they demonstrate protectable innovation. During acquisition discussions, they present a patent portfolio covering key differentiators. Their valuation reflects strategic assets, not just revenue multiples. Same market. Similar products. Dramatically different strategic positioning. The goal isn't to patent everything you build. The goal is to identify your core innovations, protect them strategically, and ensure you have freedom to operate, creating a complete IP position that serves your business strategy. 𝗥𝗲𝗮𝗱𝘆 𝘁𝗼 𝘁𝘂𝗿𝗻 𝗜𝗣 𝘂𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 𝗶𝗻𝘁𝗼 𝗜𝗣 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲? 𝗟𝗲𝘁'𝘀 𝗱𝗶𝘀𝗰𝘂𝘀𝘀 𝘆𝗼𝘂𝗿 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗜𝗣 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻. #patents #ip

The moment your startup launches without patent protection, you're essentially handing your breakthrough innovation to competitors on a silver platter. While you're focused on building and scaling, your competitors are already: - Reverse-engineering your core technology - Filing copycat patent applications based on your public product - Developing cheaper versions that undercut your pricing Securing funding by positioning themselves as "improved" alternatives to your unprotected innovation The devastating reality? Research shows that startups without patent protection are 6.4 times LESS likely to secure venture capital funding than those with proper IP protection. According to recent data from the European Patent Office and venture capital studies, companies with strategic patent portfolios not only attract investors but maintain market dominance significantly longer than unprotected startups. Our latest article reveals why patents are absolutely critical for startup growth in 2025: ✓ How exclusive rights create an insurmountable competitive moat around your innovation ✓ The proven strategy for attracting investors who see patents as risk-reducing assets ✓ Revenue generation techniques through licensing that create income without manufacturing ✓ Global protection strategies that prevent international competitors from copying your work ✓ The specific steps to secure patent protection before competitors steal your market position Tap below to read "Why Patents Are Important for Startup Growth in 2025" Your million-dollar innovation could become worthless overnight without proper protection. The startups that survive and thrive are those that secure their competitive advantage before their competitors can catch up.

What to Do If Someone Steals Your Idea Few things feel worse than discovering someone has stolen your idea. Whether it was a concept shared in confidence or a product copied by a competitor, it can feel like a betrayal—and a major setback. But you have more options than you think. Here’s how to move from frustration to action: 1. Pause—Then Document Everything Before you react publicly, gather proof: • What was taken? A name, process, design • When did you create it? Find emails, notes, timestamps. • Who had access? Think: meetings, NDAs, demos, etc. This documentation can be critical for any legal or reputational next steps. 2. Understand What You Can Protect Ideas alone aren’t protected by law—but how you express them might be: • Patents = inventions and innovations • Copyrights = creative content (videos, blogs, artwork) • Trademarks = brand names, slogans, logos • Trade secrets = confidential business information shared under NDA If none of these apply, legal recourse might be limited—but don’t give up yet. 3. Talk to an IP Attorney An intellectual property lawyer can help you: • Send a cease-and-desist letter • File for an injunction or lawsuit • Prove prior use or ownership Many cases don’t require court. Often, just showing you’re willing to fight is enough to get copycats to back off. 4. Protect Future Ideas—Fast If your idea wasn’t protected before, fix that now. Tools like Instant IP give you blockchain-verified proof of ownership in seconds—for less than $100. This smart contract gives you: • A court-admissible digital asset • Confidence to share your idea • Prior art protection (to block others from patenting your concept) 5. Decide If You Should Go Public Going public with your story can build support—but it’s risky if you don’t have clear evidence. Accusations without proof can backfire. Only share your story if: • You have strong documentation • The impact is significant • You’ve consulted legal counsel 6. Keep Creating Yes—someone stole your idea. But they didn’t steal your ability to create. The best brands—Taylor Swift, LEGO®, Apple—have all faced copycats. What sets them apart? They used protection to fuel innovation, not slow it down. Bottom line:  If someone steals your idea, don’t panic or disappear.   Document it. Get support. Protect the next one. Your response is your power. FREE GIFT Want to protect your next idea in under 60 seconds? Claim your free Instant IP credit at https://instantip.app (a $97 value) and turn your idea into a blockchain-verified digital asset—without legal guesswork. Because some ideas are too valuable to leave unprotected.

Brilliant physicians get screwed, not always by malpractice or hospital systems. But by giving away million-dollar ideas for free. Last week I promised you a deep dive on protecting your intellectual property, so here it is. I often hear from physicians who just realized someone else is profiting from their innovation, the diagnostic method they developed or the treatment protocol they perfected. The pattern is always the same. "I shared it to help patients."  "I thought collaboration meant partnership."  "I had no idea it was worth protecting." Meanwhile, device companies and health tech startups have built entire business models around mining physician expertise without paying for it. Medical school taught you to save lives but nobody taught you to protect your intellectual property. You’re planning a conference presentation or excited to share your latest research findings. One wrong move and you could be signing away millions in future royalties. The healthcare innovation economy raises billions every year and your clinical expertise is the raw material they need. But most physicians have no idea how to protect what they've created. This week's newsletter breaks down exactly what you need to know. The critical timing rules that could destroy your patent rights, the contract clauses that will screw you, the employment traps and startup equity mistakes. Plus the frameworks to protect your innovations before someone else profits from them. This isn't generic legal advice, it's street-smart guidance specifically for physicians. Because when you're the recognized expert with protected IP, everything changes. Stop being the brilliant physician who gets played and start being the one who gets paid.

If your tech was created by a freelancer, without a formal contract, you might not even own it. Here’s what many startups don’t realise: IP ownership is not always assigned automatically, even if you paid somebody to do the work. Freelancers, agencies, even co-founders, without a signed IP assignment clauses, you may not even legally own your own code, content or designs. This is a deal-breaker during fundraising or acquisition. I feel surprised when founders believe that payment means ownership. You don’t even know but you are committing a huge mistake. Don't gamble with this. Why Intellectual Property Matters for Startups 1. Startups exist in competitive markets, and established players can easily copy your ideas. IP rights means that your innovation is protected from being copied.   2. Demonstrating that your IP assets are clearly defined illustrates originality and competitive advantage, and improves your startup’s total valuation when seeking funding. 3. Established trademarks and copyrights will help distinguish your brand in a crowded marketplace. 4. You can also license your IP or develop joint ventures for increasing revenue. 5. When your IP is registered you have control over where to scale your business and what regions to safely expand to without risk of infringement. Quick IP Essentials: 1. Copyright protects original works like software, designs, and content. 2. Patents protect inventions and technical innovations (20-year protection). 3. Trademarks protect your brand name and logo (renewable every 10 years). 4. Trade Secrets cover confidential business information that gives you a leg up. In 2019, Ola’s parent company won a legal fight against “Ola Tours,” which had a deceptively similar name, highlighting the importance of securing your trademarks to protect against brand dilution and consumer confusion. Government Support for Startups The Startup India Action Plan: Fast-track patent applications, 80% fee rebate for filings, free legal or technical assistance. Scheme for Facilitating Startups Intellectual Property Protection (SIPP): Financial incentives and simpler procedures around IP protections. IPR Awareness Campaigns: Run by CIPAM to inform startups of the importance of IP protection. Protecting your IP is not a DIY job. Here’s why professional help is essential: 1. Identify the right IP protection type, not every idea is patentable or able to be trademarked. 2. Prepare and prosecute patent applications using technical and legal knowledge. 3. Determine whether and when to file, as IP law is territorial in nature and time sensitive. 4. Develop and maintain a comprehensive IP strategy that includes Inception, Litigation, Licensing, and Monetization. 5. Perform patent landscape studies to avoid unnecessary R&D, and maximise publicly available knowledge. Your IP is an important asset as it can make or break the future of your startup. Protect it wisely and strategically. Ahmed & Co #Startups