Avoid These 6 Intellectual Property ‘Business Killers'

Myths and mistakes that can undermine your IP endeavors and short-circuit your valuations

Four hundred twenty-eight thousand eight hundred. That’s how many patents were granted by the U.S. Patent and Trademark Office (USPTO) in fiscal year 2023, according to Statista. That’s a steady climb from the 374,006 patents granted in 2021—despite global uncertainty, inflationary pressures, and widespread market volatility.

“The filing and issuing of patents continues to rise because companies and organizations are better understanding the significance of patents on value, and valuation, for their businesses,” says patent attorney and IP authority JiNan Glasgow George. “Indeed, crafting an efficient IP portfolio is vital to high valuation, making companies attractive to investors.”

According to JiNan, understanding patent trends can dramatically protect existing intellectual property and increase valuation as businesses continue to innovate. However, she cautions that there are several “business-killing” myths and missteps that can tank a promising venture. Here are her top six to avoid:

1. Filing for Everything

New to IP? You’re not alone if your first instinct is, “Let’s patent it all!” That excitement is natural, especially if you've been sitting on a pile of promising ideas. But trying to file for every concept in your prototype archive can be a costly mistake. Not everything is worth patenting—and the ROI just might not be there.

The truth is: **quality trumps quantity**. A single robust, well-strategized patent can provide far more protection and valuation than a handful of rushed, minimal filings. Minimum filing requirements don’t equal maximum protection. Worse, a weak patent can lead to an expensive false sense of security.

Do this instead:** Triage what truly deserves a patent based on ROI modeling. Sometimes, the real money-maker is an idea buried in your “maybe” pile—not your favorite concept.

2. Waiting Too Long to File

Patent law is a **race to the USPTO finish line**—and it’s “first to file” who wins, not first to invent. Waiting too long to act can mean losing your IP forever, even if it was *your* idea.

And once you've gone to market, you're up against the public disclosure clock, with strict filing windows and increased risk of ineligibility.

Do this instead:** Get organized and file early. If you're serious about attracting funding, consider it part of your fiduciary duty to act quickly and prudently.

3. Do-It-Yourself Filing

You wouldn’t do your own root canal, so why DIY your IP filings? Even if you’re a savvy business owner, filing without legal expertise can lead to costly errors—and often ends with rejection, rework, or starting from scratch (at twice the cost).

Many IP attorneys report that “fixing” DIY filings often costs **more** than doing it right the first time. A misstep in phrasing or failure to properly structure claims can kill your patent before it has a chance.

Do this instead:** Work with a seasoned IP attorney from the beginning. The cost is well worth avoiding lost time, rejected filings, and costly course corrections.

4. Assuming You Own the IP

Paid someone to build your app? Design your prototype? Create your brand assets? If you didn’t clearly assign the IP rights in writing, **you might not own what you think you own**.

One real-life example: a life sciences company commissioned custom software without including an “assignment” clause in the vendor agreement. Later, they discovered the developer had begun licensing that same code to a competitor. The company had paid to **license** the software, not to own it outright—even though they funded and conceived the entire project.

Do this instead:** Have every agreement reviewed by legal counsel. Ensure assignment clauses are airtight. Never assume payment equals ownership.

5. The Get-Rich-Quick Patent Fantasy

A single patent does **not** equal a million-dollar payday. Many entrepreneurs get caught up in the fantasy that simply securing a patent guarantees wealth. Unfortunately, most patents are **never monetized**. Many aren’t even viable in the market.

Often, the patent itself is sound, but the underlying product lacks demand—or the execution was weak. ROI isn’t driven by novelty alone—it’s the intersection of innovation **and** market need.

Do this instead:** Stay grounded. File strategically for solutions that meet a validated demand. The most successful inventors often iterate through multiple versions before hitting gold.

6. Believing Patents Alone Will Protect You

A granted patent doesn’t shield you from infringement lawsuits—or from infringing others. Too often, companies overlook **freedom-to-operate (FTO)** or clearance searches and find themselves blindsided by a Cease and Desist letter.

You can still infringe someone else’s patent even with one of your own. In fast-moving or crowded industries, the risk is even higher.

Do this instead:** Conduct clearance research early in your development cycle. It’s far easier (and cheaper) to design around existing patents before you launch than to fight a legal battle after the fact.

In today’s rapidly evolving innovation landscape, smart IP strategy isn’t a luxury—it’s a necessity. Avoiding these six “business killers” could be the difference between a successful valuation and a costly collapse.

Want to increase your company’s worth and attract investors? Start with smart, strategic, **legally sound** IP management. Your future self—and your bottom line—will thank you.

Merilee Kern, MBA is an internationally-regarded brand strategist and analyst who reports on noteworthy industry change makers, movers, shakers and innovators across all B2B and B2C categories. This includes field experts and thought leaders, brands, products, services, destinations and events. Among other endeavors, Merilee is creator and host of the “Savvy Ventures ” business TV show that airs nationally on FOX Business TV and Bloomberg TV and the “Savvy Living” lifestyle TV show that airs in key U.S. markets on top networks. Connect with her at www.TheLuxeList.com and  www.SavvyLiving.tv / Instagram www.Instagram.com/MerileeKern / Twitter www.Twitter.com/MerileeKern  / Facebook www.Facebook.com/MerileeKernOfficial / LinkedIN www.LinkedIn.com/in/MerileeKern.

Sources:
https://www.statista.com/statistics/950838/number-patents-issued-us-government-department/
https://www.uspto.gov/web/offices/ac/ido/oeip/taf/h_counts.htm