Should tech start ups with a sole owner/founder/inventor (patent pending) filing an LLC License or Assign patent rights into the newly formed LLC?

A provisional patent is good for two things. It is a date-stamped proof of invention and gives you time to determine whether to incur the cost of filing a full patent. Yes, so long as the individual component pieces you think are useful are sufficiently described in detail within the one general application, it sets you up to later claim utility patents for any and all of these, providing they really are unique. But in general, I would really caution you from spending time and money to file patents for a software company. I've built many innovative software products over 20 years of work in our industry and only filed one patent in my life, and even that patent is only to protect people from abusing a truly transformative and world-changing technology. That said, a provisional patent is inexpensive and if any expense is going to be incurred here, a catch-all is sufficient if you feel inclined to file anything at all. If your goal is an acquihire or acquisition, utility patents do actually make a difference in the acquirers valuation (at least for now) but if you're thinking about it from an actual defensive perspective, I'd really advise that it's not worth your time (and distraction) and money. The best defence is a great offence. Scale up, get great engagement from users who love your product and you'll be in a much stronger to fight competitors. Lastly, if you do decide to file a provisional patent, don't claim to anyone that you have I.P. You don't. :) Happy to talk through this in a call with you. Best of luck!

I help clients leverage and monetize their patents in a variety of ways. One of the best methods is to attend and exhibit at trade shows in your field. Targeting startups may be one approach, but that's not the only market for your patent. I'd be happy to talk with you about identifying the best trade show and working the direct solicitation angle as well. Let me know when you're ready to get started!

I am a corporate attorney and have advised clients of protection of the intellectual property integral to their operations. In the intellectual property world, there are three types of federal registration you can pursue - patent, trademark, and copyright. Patents secure ideas, trademarks secure brands, and copyrights secure written product. If you are looking to protect your idea, you may think about filing for a patent. The first step is securing a provisional patent that sort of holds a spot for your idea while your actual patent application is pending or your idea goes into development. The patent process is complicated and lengthy, so I would recommend getting the advice of a patent attorney if that is something you want to explore. Not all ideas are able to be patented, and you may find that a patent is not an option for you. The other option is to maintain your idea as a trade secret. This essentially means that you are careful about who you share it with, and when you do share it with anyone, you have an Non-Disclosure Agreement in place that prohibits them from disclosing your idea to anyone else or misappropriating it for themselves. If you had a company built around the idea, you would establish an in-depth trade secret program designed to prevent disclosure of your idea outside of the company. (e.g. Coca Cola has a trade secret program built around the recipe for Coke.) As an individual, you would just need to be careful and, to be extra thorough, get people with whom you share your idea to sign NDAs. There is no federal registration process involved in maintaining a trade secret, just common sense and consistency with your protective practices.

It's becoming more and more difficult for patent trolls to litigate with the current discussions in Congress. It really depends of your market. If it's involving software patents, it's even harder. At Nesting Partners my firm actually bring patents to life then to product then to market to exit! We know quite a lot about patents and work with a lot of trolls (or NPEs) to help them find an alternative to litigation.

Any suit run by a competent lawyer will ensure that the parties named in the suit include everyone who might be able to pay. So, while your LLC might own some products, it may not be the only entity sued. You might be sued, along with all kinds of other people and companies. I'm not saying there's nothing you can do, but you certainly cannot escape having to defend a suit. Anyone can sue anyone else, even if the suit will ultimately be unsuccessful. You ask how can you handle being sued without going to court? The answer is negotiate a settlement that results in the lawsuit being dropped. So, what have you got to trade? What damage could you do if they continue to sue you, and so on.