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Story: BSA figures do not add up

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Posted by: Jeremy Chatfield (Monday 27 June 2005, 6:33 PM)

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Normally I wind up scathing the simple minded rewrapping of a press release by ZD... Not this time. Good hatchet job. Some research and analysis. Well done.

Why would SME's need a patent? One of the reasons is that if they want a VC to fund the company, they need something patented or patentable. Many of these companies will fail, or have patents that aren't a sufficiently unique selling point. I expect that a large percentage of the patents are granted to companies hoping to attract a VC. I know of at least four patents that will be in that collection of SME patents, from one startup that I worked with. I know of a Cambridge company with a patent that is essentially indefensible, but it was needed before VC's would talk to them.

VC's use patents as a way to help guarantee that there is a USP for the business. Hence the disproportionately high count of SME's.

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