A Comment on 'Do Patents Facilitate Financing in the Software Industry?'

9 Pages Posted: 28 Jun 2006

See all articles by James E. Bessen

James E. Bessen

Technology & Policy Research Initiative, BU School of Law

Date Written: June 27, 2006

Abstract

'Do Patents Facilitate Financing in the Software Industry?' by Ronald J. Mann contributes empirical evidence to our understanding of how software startups use patents. However, a close examination of the actual empirical findings in this paper points to rather different conclusions than those that Mann draws, namely: few software startups benefit from software patents and patents are not widely used by software firms to obtain venture financing. Indeed, among other things, the paper reports that 80% of venture-financed software startups had no acquired any patents within four years of receiving financing.

Keywords: Software, Patents, Startups, Innovation, Venture Capital

JEL Classification: 034, M13, L86

Suggested Citation

Bessen, James E., A Comment on 'Do Patents Facilitate Financing in the Software Industry?' (June 27, 2006). Boston Univ. School of Law Working Paper No. 06-13. Available at SSRN: https://ssrn.com/abstract=912521 or http://dx.doi.org/10.2139/ssrn.912521

James E. Bessen (Contact Author)

Technology & Policy Research Initiative, BU School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States

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