The Clubhouse Saga: When Not Having IP and Patent Protection Goes Wrong!

The Clubhouse Saga: When Not Having IP and Patent Protection Goes Wrong! July 29, 2022Leave a comment

Conventional wisdom in Silicon Valley says…

We don’t really need a patent…

We’re a software company in the valley…

Software patents are worthless and hard to get…

Focus on the money…

Build something, get traction, who needs a patent…

I’ve heard some versions of this from several different tech founders

the silicon valley veterans…

Saas gurus…

Sounds good…

Why waste money investing in patents, trademarks, and intellectual property protection?

 

But what happens when you create value and bring something new to the table without protection…

You get copied…

You get sued for infringement by companies who took their IP seriously…

You get duplicated by companies who can do it better than you…

Faster than you…

And outcompete you…

 

 

 

 

 

 

 

 

Check out Clubhouse…

Created in 2019…

Introduced the audio social media app genre…

Got a quick $4Billion valuation…

Did NOT invest in IP protection…

 

 

 

 

 

 

 

 

They were sued for trademark infringement…

Undisclosed settlement with a company that had trademarked their App “TheClubhouse”

 

 

 

 

 

 

 

 

They didn’t file any patents…

So now all the social media apps and platforms are doing their version of clubhouse…

 

 

 

 

 

 

 

 

Twitter Spaces – Celebrity & NFL partnerships

 

 

 

 

 

 

 

 

Reddit Talk

 

 

 

 

 

 

 

 

Telegram Voice

 

 

 

 

 

 

 

 

Facebook/Meta/Instagram Audio

 

 

 

 

 

 

 

 

LinkedIn Social Audio Events

 

 

 

 

 

 

 

 

Discord Live Audio Conversations…

 

 

 

 

 

 

 

 

Spotify Greenroom…

 

 

 

 

 

 

 

 

Slack Huddles…

And more…

 

Ideally, if they worked with Patent Insider Startup in the beginning…

Clubhouse would have an Intellectual Property Strategy

Clubhouse would have patents and trademarks…

Clubhouse would be implementing their commercialization strategy by…

Licensing out their technology and software to all of these companies…

They would be generating revenue and not having their market position threatened because…

They would own the technology by owning the IP.

These competitors are simply mimicking the UI and app functionality…

By not protecting their IP, Clubhouse has given away all their ground…

Why go to Clubhouse when you can “do Clubhouse” on more popular, more established platforms?

I really would love to be wrong here but given the track record.

They are setting themselves up for a quick flame-out after all the hoopla and fanfare.

 

 

 

 

 

 

 

 

Don’t let this happen to your startup.

Don’t let this happen to your business unit at your multinational firm.

Don’t overlook your IP strategy.

Don’t ignore your GC or IP counsel when they tell you to hire Patent Insider to get your IP strategy in order

 

 

 

 

 

 

 

 

Take your IP seriously…

Protect your competitive advantage…

Secure your position by investing in your IP…

 

If you’d like to hear more about how we can help you get your IP strategy in order,

Comment below, DM us, or call our office.

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