What Founders Should Know About Patents 

Hot Takes from FounderNV Master Glass Session “Myths & Realities of Patents” with Demetris Paraskevopoulos

FounderNV’s Master Glass speaker series is designed to bring world-class experts to share valuable knowledge with local founders and investors in Nevada’s startup ecosystem. These sessions give attendees practical insights into the challenges of building early-stage startups, debunk common myths, and create space for enriching discussion — all over a glass of wine, a cold brew, or a mocktail (like our faves from local startup Lowtail Mocktails).

In March, FounderNV hosted Demetris Paraskevopoulos at Woven Workspaces in Las Vegas. Hailing from Greece, Paraskevopoulos is a global patent strategist, startup investor, and intellectual property (IP) expert specializing in high-tech sectors. He has worked closely with early-stage startups to help them build patent portfolios that are not only defensible, but valuable. 

This session included expertise and discussion on:

✅ Patent strategy

✅ The value of patents

✅ When to file a patent application

✅ What patents mean for investors

Drawing from decades of experience, Paraskevopoulos brings more than legal theory to the table — he helps founders focus on what’s worth patenting and how IP can support business outcomes. During his session, titled “The Myths and Realities of Patents,” he offered a frank take on where most startups go wrong with IP – without the sugar coating.

Did you miss this Master Glass? Not to fret, we’ll share some of Demetri’s insights and hot takes in this blog.

What is Patent Strategy?

“Not every invention should be patented. The patent portfolio should be considered what the military would call a perimeter defense, not a single patent.” 

For founders, patenting extends beyond securing intellectual property. It requires strategy – being intentional with which inventions you patent, thoughtfully structuring your portfolio, and analyzing how each patent contributes to your business goals. 

Companies with strong protection often hold multiple active patents across all geographical markets they currently- or plan to- operate in, forming a defensive moat. But not every invention is worth the investment. “Some of them are redundant or frivolous,” Paraskevopoulos explained. “So, how you put together the right portfolio from an economic point of view is very important.”

A solid patent strategy balances technology, legal, and business factors. It starts with getting the right inventors listed – including everyone who contributed to the invention, not just those with seniority. It also involves a thoughtful approach to the tradeoff: although (granted) patents offer 20 years of protection, each application demands time, money, and resources. And, most importantly, a patent is not required to bring a product to market. Founders planning their patent strategy often ask, “Is this worth patenting?” This strategic thinking is the first step to smart patent strategy.

The Value of Patents

“Patents are the dominant value of companies of today.”

When patents are high quality and aligned with business goals, they can offer massive strategic value. As Paraskevopoulos put it, “In essence, what the government has given you is the exclusive right to threaten competitors –  [the right] to sue them for patent infringement if they use your invention.” This right can translate into royalties, licensing fees, or litigation leverage — forming a powerful safeguard around a company’s most valuable intangible assets.

Most patents filed by startups and small firms have defensive value — protection against copycats or future litigation. But the real treasure lies in assertive value — when a company successfully asserts its patent rights against a larger infringer.

“If the defensive value of the patent is in the millions,” Paraskevopoulos explained, “the assertive value can be in the hundreds of millions.” That’s a tenfold return, a benefit often overlooked by founders and investors alike.

When Should You File a Patent?

Before filing a patent, it’s natural to want to share your great, new idea with the world. However, premature disclosure can jeopardize your ability to protect your intellectual property. As Paraskevopoulos warns, you should keep the “how” of your product a secret until it is protected, stressing, “You can disclose what your invention is all about, but not the ‘how.’”

Timing is everything when filing a patent. “If you disclose your invention before you file for a patent, you lose the right to file a patent unless the disclosure is under a nondisclosure agreement,” he explained. In other words, if your invention becomes public before you secure protection, you may lose the opportunity to fully safeguard your intellectual property.

If you’re not ready to file a full patent but need to move quickly, you can submit a provisional application. Provisional applications give you a priority filing date and temporary protection for your asset. Provisional patents are not a patent alternative, as you must file a full, non-provisional application within 12 months to preserve your rights.

The takeaway? File early, file smart, and don’t overshare until your intellectual property is protected.

What Patents Mean for Investors?

Patents are a key part of a company’s valuation and are often a make-or-break factor during due diligence. Protected assets can assure investors that their investments will be backed by something defensible. However, it is important to consider the quality of a company’s patents when deciding to invest. A startup’s patent portfolio can be a valuable asset, sometimes serving as the only significant asset. 

However, not all patents are created equal. Demetris stressed that “four out of five patents that people have invested money in have no value.” Investors must consider the quality of a company’s patents – not just the quantity. This means that patents that are strategic, defensible, and economically meaningful will provide investors with the most confidence in a startup.

Strong patents come with an extra benefit through litigation investments. As Paraskevopoulos shared, “There are huge billion-dollar companies that invest in litigation outcomes, including patent infringement litigation.” Along with protecting intellectual property, patents can unlock new opportunities for funding – ultimately leading to a successful business outcome.

Takeaways

The main takeaway from Demetris Paraskevopoulos’ FounderNV Master Glass is that patents aren’t just legal tools, they are strategic assets in a business’ entrepreneurial landscape. Founders and investors must ensure that a company’s patents align with their business goals by investigating patent strategy, financial timing, and the value of patents. This means asking the hard questions early: Is this worth patenting? Does this align with our business goals? Will this hold value in the long term? Securing your assets with a thoughtful, reliable patent strategy can lead to a competitive advantage, investor confidence, and even extra financial returns.

Special thanks to Demetris Paraskevopoulos for sharing his deep expertise and practical insights to help founders and investors understand the real power of patents!

Recapped for your reading pleasure by Izabella Hedjazi