Robin Feldman, Professor of Law and Director of the Institute for Innovation Law at University of California Hastings College of the Law, today released the findings of her study “Patent Demands & Startup Companies: The View from the Venture Capital Community.”
Among its objectives, the study sought quantitative data on the frequency of patent demands (sometimes known as patent assertions); whether those demands are made by entities whose core business involves the licensing or litigation of patents; and the dollars spent in response to demands. The survey was distributed to members of the National Venture Capital Association and the CEOs of member firms’ portfolio companies.
Patent Demands & Startup Companies finds that of the respondents, 70 percent of the Venture Capitalists and one in three startup companies report having received patent assertions. Eighty percent of survey respondents indicated that the number of patent demands they have received has increased over the last five years.
“The economic and human toll of patent demands on startup companies is substantial. When startup companies must spend time and money thinking about patent demands, they are not inventing, and they are not expanding,” Professor Feldman said.
Other study findings include:
The full report is available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2346338.