Tag Archives: Startups

U.S. cities are attracting a lower percentage of startup capital

Several surveys of global innovation have noted that the U.S. innovation edge is slipping, but until now they have not pinpointed where the U.S. share of global tech investment is going and possible reasons why.

A recent report detailing which cities today are attracting the most venture capital, Rise of the Global Startup City, states that the U.S., while still a lead player, is no longer the epicenter of all things new and  technological. Other cities are attracting a growing share of the venture pie, especially those in China.

“America’s long-held singular dominance of startup and venture capital activity is being challenged by the rapid ascent of cities in Asia, Europe, and elsewhere,” reports the study. “While the United States remains the clear global leader, the rest of the world is gaining ground at an accelerating rate.”

The reasons for the shift are complex: better access to data and computing power; local talent that cannot easily emigrate to the U.S. – or no longer wishes to  – and soaring real estate prices and salaries in established technology centers like Silicon Valley, New York and Boston.

Inhospitable Environment

Another reason not mentioned in the “Global Startup,” which was commissioned by the Center for American Entrepreneurship, is the inhospitable environment for U.S. IP rights, especially patents. The U.S. has fallen into an abyss where most IT patent rights are uncertain and virtually impossible to license, creating disincentives for both investors and tech companies.

At the same time, China has flaunted an increasingly plaintiff-friendly patent system that is more welcoming to innovators and foreign participation than a decade or two ago. Also, a decade or so ago, cities like London, Berlin and Delhi were barely a blip on the VC radar. Now they are serious players who want to grow.

For the full report, “The Rise of the Global Startup City, go here.

Source: Richard Florida/Ian Hathaway

LES annual meeting to be held in Boston October 14-17

The birthplace of innovation, Boston, is the site for the 2018 Licensing Executives Society meeting.

The opening session, “Advancing Innovation Through a Renewal of Trust,” will feature Andrei Iancu, USPTO Director, Bill Elkington, Senior Director – IP Management, Rockwell Collins and Walter Copan, National Institute for Standards and Technology (NIST) Director and Under Secretary of Commerce for Standards and Technology.

Other sessions include:

  • Funding Startups – The Boston Perspective
  • Increasing ROI for Government-Funded Research
  • Advanced Telecommunications Licensing, 4G, 5G and LTE for Automobiles
  • US or Them – Who is Going to Set Standards for Licensing
  • Patenting Machine Learning
  • 2018 Tax Consequences: Coordination of IP Monetization and Tax Planning
  • Life Sciences Partnering Performance and Reputation Survey Results
  • Maximizing IP Value and Minimizing Risk in M&A Transactions

For the full 2018 LES annual meeting agenda, go here. For the speaker biographies, please visit http://www.lesmeetings.org/am18/speakers/

To register, go here.

Image source: lesmeetings.org 

Google’s patent giveaway is not really about saving startups from predators

The Patent Starter Program announced last week by Google may be less about how the company can help protect young companies from patent “trolls” than re-thinking how patents are most effectively used.

 A provocative article running on the Fortune blog by Jeff John Roberts, Google’s new patent plan: how it will and won’t help startups,” suggests that Google is packaging incentives to discourage companies from enforcing patents or selling them to businesses that do.

Roberts believes that the Patent Starter Program could create big long-term ripples in how the tech industry views and deploys patents, and leverages brand recognition. It is an indication of Google’s growing sophistication in the IP space, and shows its willingness to participate in patent transactions (buy and release, similar to Allied Security Trust) if they can help to achieve the tech leader’s business goals.

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“The real significance of the Google Patent Starter Program,” writes Roberts,”is instead more subtle, and should be seen against the backdrop of other moves wpid-google-inc-offers-to-sell-patents-to-startups-as-company-fights-patent-trolGoogle is undertaking to change the economic incentives that have made patents such a problem for the tech sector in the first place.”

“Perhaps the search giant is actually tempted to follow the example of older companies like Microsoft and Qualcomm which, as their capacity for product innovation fades, have turned to their patent portfolios as a new revenue stream.”

Google lawyer Kurt Brasch said that was not the case and that the goal of the purchase program was in part to create more realistic expectations about the actual value of patents in the secondary market.

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The new starter program obliges the startups who receive Google patents to sign up for the LOT network, “a condition that’s easy to accept,” says Fortune, “since Google will pick up the first two years of the membership tab.”

Image source: techno-stream.net


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