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Article #72036

The cost of SW patents

#72036
From: Clark O. Morgan
Date: Tue, 21 Apr 1992 05:07
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Last night I visited friends who were soliciting funds for their
startup company -- they plan to market a new product for Windows.  This
product, in my opinion, is solid and serves a useful purpose.  I
suspect my friends will be successful.  Since I'm under nondisclosure,
I can't discuss the product, but I would like to point out that to
protect their current investment of time and money (they have spent
much of their own money to develop the product), they feel forced to
file a SW patent prior to NPI (new product introduction).  I asked
why?  I was told:

  "If we don't file a patent for this product before it's introduced,
  then any number of companies could duplicate the product, file a
  patent application, and force us to pay royalties for our original
  work."

I don't know if these type of patent battles are actually played out
in the real world, but it doesn't matter.  My friends feel they have
no choice.  Now, to the heart of the matter, the filing cost:

      $6,000 - $10,000

Based upon personal (one-time) experience, I'd say the entry level fee
for commercial SW development in the 1990's is $6,000 - $10,000.  And
not one cent of that money will be spent on the basics:  HW, SW, or
salaries.  It all goes to a lawyer and the patent office.
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From: morgan@ogicse.cse.ogi.edu (Clark O. Morgan)
Newsgroups: gnu.misc.discuss
Subject: The cost of SW patents
Message-ID: <36514@ogicse.ogi.edu>
Date: 21 Apr 92 05:07:27 GMT
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Distribution: gnu
Organization: Oregon Graduate Institute
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