In our world, innovation and creativity are the drivers of change. However, ideas and concepts are quite difficult to defend in front of a world that?s always hunting for the next big thing. So if you are not using the proper means of protection, chances are someone else will get wind of your invention and run with it.
Plus, you never know when the spark of inspiration will strike twice, at the same time. That’s why patents are important for a business. Patents are tools that help safeguard an invention, a design, or a process that meets certain specifications.
Also, patents work on a first-come-first-served basis, so as soon as you have a viable idea, it’s best to run to a patent office and register it.
But what if you are a SaaS company? Are patents still a good option to protect your ideas from being exploited? The situation is a bit different in this situation, but it’s not impossible.
Saas Businesses and Patents
Software as a Service, or Saas, is a business model that many tech startups follow in order to provide their customers with various software solutions to day-to-day life problems.
These startups and businesses activate in a wide range of domains and industries and their development and growth depend on the tools they can use to protect their core concepts.
Luckily, SaaS innovation can be protected using a wide range of tools such as trademarks, copyrights, trade secrets, and patents.
What Can a SaaS Business Patent?
The main issue SaaS businesses have when applying for a patent is proving the eligibility of the software for patent registration. Due to some recent legal changes, software patent applications are seen as abstract ideas and therefore cannot be patented.
That’s why many SaaS businesses should first discuss with a patent registration lawyer or law firm. A professional with expertise in patent applications will help frame the invention in such a way that it will pass the patent eligibility process.
In short, in order to be patent-eligible, the software needs to perform novel and proprietary features. Also, the patent must be focused on what the software executes and not the code itself (non-patentable).
Lastly, if your software is still in development and you worry someone else may register a patent for a similar invention, it’s best to go with a provisional patent application. This way, you can make full use of the first-filed system of the patent office.
Why Do SaaS Businesses Need Patents?
We already talked about protecting important ideas and inventions, but patents (and other protection tools) have other benefits for SaaS businesses and startups, such as:
#1: Competitive Advantage
In today’s highly-competitive environment, the amount of proprietary technology is a powerful factor of influence. Plus, it helps to have unique tech solutions to stand out from the crowd and attract the right audience.
#2: Attracting Investors
Intellectual property (IP) protection can be an advantage when the business is looking to attract investors because most of them are interested in unique software solutions that bring a new perspective to the market.
#3: Selling the Company
Many SaaS startups follow the regular path of beginnings – proving their worth – being sold to a larger company. However, if you don’t have any valuable IP items in your portfolio, it will be difficult to attract any big buyers.
Wrap Up
Intellectual property is the main currency of today’s world, and you can see why if you check these amazing Swedish startups that are changing the world into a better place.
The ideas and concepts they promote are unique and create value for their customers, but their creative process wouldn’t have existed without proper IP protection.
