Patents for Entrepreneurs: Why Every Startup Should Play the Game
In the fast-paced world of startups, intellectual property is often an afterthought—until it’s too late. At sTARTUp Day, Ola Wassvik, co-founder of Lightbringer and former CTO of Flatfrog with over 300 patent families, delivered a seminar that broke down the often intimidating world of patents into practical strategies that every entrepreneur should understand.
“We knew quite early on that we were going to be copied,” Wassvik admitted. “When our product hit the market and succeeded, we knew someone would try to replicate it.”
He recalled a striking example from his own experience: “After spending 18 months developing a product, it took just five months for a competitor to bring a similar version to market. And our customers couldn’t even tell the difference.”
This is where patents become crucial. Patents don’t just protect your product, they protect your business. If you don’t own your innovation, someone else will.
Why Investors Love Patents
For startups looking to raise capital, patents offer more than just protection—they provide a strategic advantage.
“Statistically, if you have a patent, you’re 50 percent more likely to secure funding,” Wassvik revealed. And companies with patents see 80 percent higher sales in the following years.
Why? Investors see patents as a form of insurance. First, patents make it harder for competitors to steal technology. If an investor puts five million euros into your company, they don’t want someone else copying the tech and wiping out their investment.
How many patents do you actually need?
Many founders assume they only need one patent to protect their innovation. According to Wassvik, that’s rarely the case, and a single patent is usually not enough. Most companies need a patent portfolio—anywhere from two to two hundred patents or even more—depending on how complex their product is.
For hardware startups, each feature may require its own patent. Let’s say you’re building an electric scooter. You might patent the motor technology, the folding mechanism, and the battery system separately. If you don’t, a competitor could copy 80 percent of your product and only change one small part to avoid infringement.
The biggest patent mistake startups make
One of the most surprising lessons from the seminar was how easily startups can accidentally lose their ability to patent an innovation.
If you show your product publicly before filing a patent, this will prevent patent protection for the product in most countries. That means pitching it at a trade show, sharing it in an article, or even just posting a picture online.
To avoid this mistake, Wassvik advised filing patents right before any major public reveal. “At my company, we filed patents one week before trade shows. That way, we were protected, but we didn’t have to delay marketing.”
How to protect yourself from customers stealing your IP?
Startups often face a dilemma: to close a deal with a big customer, they need to show their product. But what if that customer decides to patent the idea themselves?
It happens all the time. Especially with big corporations. They’ll say, ‘Show us everything before we commit.’ Then they go silent for months, and suddenly, they’ve filed patents on your technology.
He shared a personal experience where his company signed a five-million-euro deal with a Korean tech giant—only to discover eighteen months later that the company had patented their own version of the technology.
The only way to prevent this is to patent your invention before that first big meeting. Otherwise, you might be forced to sue your own customer—which almost no startup can afford to do.
The smartest way to file patents without wasting money
Patents can be expensive, but Wassvik shared a money-saving strategy that he wishes he had known earlier.
“If I knew what I know now, I would have saved at least five million euros on unnecessary patents.”
If someone can see or copy it from the final product, patent it. But if it’s hidden inside the system—like a manufacturing method—consider keeping it a trade secret.
First to file wins – the race against competitors
Many entrepreneurs assume that if they invent something first, they have the rights to it. But Wassvik debunked that myth.
Patents work on a ‘first to file’ basis, not ‘first to invent.’.
That’s why patenting early is critical. If you wait six months, you have no idea what’s been filed in the meantime. And once someone else has the patent, you’re stuck—you either pay for a license, or you change your entire product.
Patent strategy 101: Licensing vs. Defense
Before filing patents, startups need to decide their strategy.
A licensing strategy means filing patents to sell or license to bigger companies. This approach requires many patents covering every possible variation of an invention.
A defensive strategy means filing patents to protect your product from being copied. This typically requires fewer patents, but they must be well-targeted.
If you’re planning to license your technology, you need a big patent portfolio. That’s how companies like Ericsson make billions just from licensing patents.
On the other hand, if you’re just trying to prevent competitors from copying your product, a smaller, well-placed portfolio is enough.
Investors value patents
One of the most surprising takeaways from the seminar was that patents have immediate financial value.
Even a single patent adds value to your company the moment it’s filed. If you’re a licensing company, that value can be even higher. Both the EUIPO and the EPO have published studies that show that startups have a significantly increased value when they file patent applications.
“We once helped a company that was about to be acquired. They filed twenty patent applications in two months, and their valuation increased by fifty percent before the deal closed.”
Final advice: play the patent game or get played
Wassvik ended the seminar with a simple but powerful message. “If you’re in a competitive industry, patents aren’t optional—they’re a survival tool. If you don’t protect your ideas, someone else will. Play the game, or get played.”
For startups that want to raise funding, increase valuation, and secure their place in the market, understanding the game of patents isn’t just smart—it’s essential.
______________________________________
sTARTUp Day is turning 10 next year, and now is the perfect time to grab your super early-bird ticket at the best price! Join us in Tartu on January 28–30, 2026, for an unforgettable anniversary edition filled with inspiring speakers, game-changing networking, and next-level opportunities. Get your ticket today and be part of the celebration!
He recalled a striking example from his own experience: “After spending 18 months developing a product, it took just five months for a competitor to bring a similar version to market. And our customers couldn’t even tell the difference.”
This is where patents become crucial. Patents don’t just protect your product, they protect your business. If you don’t own your innovation, someone else will.
Why Investors Love Patents
For startups looking to raise capital, patents offer more than just protection—they provide a strategic advantage.
“Statistically, if you have a patent, you’re 50 percent more likely to secure funding,” Wassvik revealed. And companies with patents see 80 percent higher sales in the following years.
Why? Investors see patents as a form of insurance. First, patents make it harder for competitors to steal technology. If an investor puts five million euros into your company, they don’t want someone else copying the tech and wiping out their investment.
But there’s another, lesser-known reason. Often, the reason startups fail isn’t competition—it’s the team. If the team falls apart, the startup still owns the patents. The startup or the investors can sell them or even hire a new team to build the same business.
How many patents do you actually need?
Many founders assume they only need one patent to protect their innovation. According to Wassvik, that’s rarely the case, and a single patent is usually not enough. Most companies need a patent portfolio—anywhere from two to two hundred patents or even more—depending on how complex their product is.
For hardware startups, each feature may require its own patent. Let’s say you’re building an electric scooter. You might patent the motor technology, the folding mechanism, and the battery system separately. If you don’t, a competitor could copy 80 percent of your product and only change one small part to avoid infringement.
The biggest patent mistake startups make
One of the most surprising lessons from the seminar was how easily startups can accidentally lose their ability to patent an innovation.
If you show your product publicly before filing a patent, this will prevent patent protection for the product in most countries. That means pitching it at a trade show, sharing it in an article, or even just posting a picture online.
To avoid this mistake, Wassvik advised filing patents right before any major public reveal. “At my company, we filed patents one week before trade shows. That way, we were protected, but we didn’t have to delay marketing.”
How to protect yourself from customers stealing your IP?
Startups often face a dilemma: to close a deal with a big customer, they need to show their product. But what if that customer decides to patent the idea themselves?
It happens all the time. Especially with big corporations. They’ll say, ‘Show us everything before we commit.’ Then they go silent for months, and suddenly, they’ve filed patents on your technology.
He shared a personal experience where his company signed a five-million-euro deal with a Korean tech giant—only to discover eighteen months later that the company had patented their own version of the technology.
The only way to prevent this is to patent your invention before that first big meeting. Otherwise, you might be forced to sue your own customer—which almost no startup can afford to do.
The smartest way to file patents without wasting money
Patents can be expensive, but Wassvik shared a money-saving strategy that he wishes he had known earlier.
“If I knew what I know now, I would have saved at least five million euros on unnecessary patents.”
The secret? Only patent what can be reverse-engineered.
If someone can see or copy it from the final product, patent it. But if it’s hidden inside the system—like a manufacturing method—consider keeping it a trade secret.
First to file wins – the race against competitors
Many entrepreneurs assume that if they invent something first, they have the rights to it. But Wassvik debunked that myth.
Patents work on a ‘first to file’ basis, not ‘first to invent.’.
That’s why patenting early is critical. If you wait six months, you have no idea what’s been filed in the meantime. And once someone else has the patent, you’re stuck—you either pay for a license, or you change your entire product.
Patent strategy 101: Licensing vs. Defense
Before filing patents, startups need to decide their strategy.
A licensing strategy means filing patents to sell or license to bigger companies. This approach requires many patents covering every possible variation of an invention.
A defensive strategy means filing patents to protect your product from being copied. This typically requires fewer patents, but they must be well-targeted.
If you’re planning to license your technology, you need a big patent portfolio. That’s how companies like Ericsson make billions just from licensing patents.
On the other hand, if you’re just trying to prevent competitors from copying your product, a smaller, well-placed portfolio is enough.
Investors value patents
One of the most surprising takeaways from the seminar was that patents have immediate financial value.
Even a single patent adds value to your company the moment it’s filed. If you’re a licensing company, that value can be even higher. Both the EUIPO and the EPO have published studies that show that startups have a significantly increased value when they file patent applications.
This means that even pending patents—ones that haven’t been granted yet—can boost a startup’s valuation.
“We once helped a company that was about to be acquired. They filed twenty patent applications in two months, and their valuation increased by fifty percent before the deal closed.”
Final advice: play the patent game or get played
Wassvik ended the seminar with a simple but powerful message. “If you’re in a competitive industry, patents aren’t optional—they’re a survival tool. If you don’t protect your ideas, someone else will. Play the game, or get played.”
For startups that want to raise funding, increase valuation, and secure their place in the market, understanding the game of patents isn’t just smart—it’s essential.
______________________________________
sTARTUp Day is turning 10 next year, and now is the perfect time to grab your super early-bird ticket at the best price! Join us in Tartu on January 28–30, 2026, for an unforgettable anniversary edition filled with inspiring speakers, game-changing networking, and next-level opportunities. Get your ticket today and be part of the celebration!
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