Key for startups to compete vs. larger firms

(Amy, Professor of Law, Drexel University Thomas R. Kline School of Law, “The Antipatent: A Proposal for Startup Immunity,” pg online @ https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=2808&context=nlr //pa-ef)

Patents allow their owners to capture value from inventive activity and, under some circumstances, to contribute toward securing a com petitive position.339 To the extent that the startup can fund assertion of the right, patents can be valuable to secure a position against larger incumbents who may have superior production, resources, and distribution methods.340 A first mover that captures an early and strong patent position in an emerging market can gain significant advantages.341 For example, a robust patent portfolio can successfully stave off competitors for years. During that time, the inventive firm can experiment, redesign, and establish a market position before others begin to enter the field.342 A strong patent position can, under some circumstances, allow a firm to be the exclusive supplier of a product market, which enables the firm to build up other complimentary assets including trademarks, customer loyalty, and a distribution system.343 If successful, these assets provide the first patentee with a favorable position after the patents expire.344