Trademark or patent? The effects of market concentration, customer type and venture capital financing on start-ups’ initial IP applications

Abstract

We analyse the initial IP applications of 4,703 start-ups in the U.S., distinguishing between trademark and patent applications. Our empirical results show that start-ups are more likely to file for trademarks instead of patents when entering markets with a higher market concentration. Furthermore, we find that start-ups that are primarily active in business-to-consumer markets instead of business-to-business markets are more likely to file trademarks. Finally, the involvement of a venture capitalist (VC) affects the initial IP application. VC-backed start-ups are more likely than other startups to file initial IP in the form of trademarks rather than patents. This paper contributes to research on the use of IP rights in start-ups and to the literature on new venture strategy.

Equity crowdfunding in Germany and the United Kingdom: Follow‐up funding and firm failure

“…De Vries, Pennings, Block, and Fisch () show that startups are more likely to file trademarks than patents when entering the market. Given the lack of granted patents, BAs/VCs might therefore base their funding decisions on firms' trademarks or the potential to ultimately own a filed patent.…”

Estructura del consumidor, la frontera de producción y el marco de bienestar creado por la interacción del consumidor, productor y el mercado vinculado a la oferta y demanda de medicamentos

“…la disputa entre dichas empresas por productos y marcas evade los requerimientos en materia de salud; de paso, el comportamiento del mercado no es compatible con las expectativas que en materia de salud debería arrojar el sector. "Our findings show that as market competition intensifies, entering start-ups will be more likely to file initial IPs in the form of a trademark and less likely to file an initial IP [intellectual property] in the form of a patent" (39).…”

Current status and future forecasting of biofuels technology development

“…In fact, the region in which patent has been filed there, patent location, by nonnative companies demonstrates a market of that technology or services. In other words, rising in the number published patent by nonnative companies' shows a predictable lucrative market . One of the approaches of protecting technology that is done by firms is filed patent.…”

“…In other words, rising in the number published patent by nonnative companies' shows a predictable lucrative market. 18 One of the approaches of protecting technology that is done by firms is filed patent. Therefore, patent trends and analysis can demonstrate extraordinary information about technology and the overall tendency of markets.…”