Continuing with my story from a few weeks ago...
Provisional vs. Non-Provisional Patents
For those seeking funding from investors in their journey to startup utopia, patents pose THE biggest challenge because who wants to fund an idea that has no protection from copyright or intellectual property infringements? Certainly not me. After a successful couple of meetings with our lawyer -minus a cool $4500 "retainer fee", my partner and I felt confident to proceed with filing for a provisional patent.
I wont go into great detail as to what a provisional patent is (there's Google for that) although I will mention that it is the path to a non-provisional patent which by all definitions is the holy grail of intellectual property protection.
The lawyer was surprised that there was nothing in the market that addressed or protected fundamentals of our idea. This was music to my ears. Typically, lawyers spend less than a few hours to find a plethora of information pertaining to many technology based patents. Think of it as a real estate agent with access to a Multiple Listing Service (MLS) of pretty much ALL houses, condominiums, or manufactured homes. Lawyers have access to listings of patents and can search in a more efficient way compared to a novice like you or me.
After a day, we got a phone call from her office. "Good news" she said, "after spending most of last night combing through the patent database, I have conclusive intel to advice you to proceed with your patent application." Sighs of relief escaped under my breath. I've waited a long time for great news. After a series of busts it feels good to win.
"Do you have an LLC?"
When our lawyer asked us this question, I was slightly mad that in my haste to "proceed" I skipped the first pylon. "Uhm, no. Do we need one?" My partner asked.
Absolutely!
I highly recommend that you apply for a business license and register with the Secretary of State so as you are protected from legal ramifications of failed or unsuccessful business ventures. Especially if you are venturing into the rocky world of startups.
And thats exactly what we did. Good thing we had a retainer fee to cover the work required. One word to remember when choosing your incorporation location, DELAWARE. Don't ask me why, something about favorable business laws was the gist of what I got from the research I did.
So for now, we are playing the wait game. Until our certificate of incorporation is issued, we cannot open a bank account, or claim business expenses incurred in the pursuit of startup success. Or proceed with the lawyer.
Dangit.
Hashtag "the rocky road to success"
Thanks for visiting, I'll circle back to my saga once the formalities are accomplished. If you have any questions, seek professional advice. One expensive idea is worth its weight in gold - to the right idealist.