Patent litigation can devastate a small medical device company when a well-funded competitor decides to flex its legal muscle. Mario Milano, owner of Milano IP, reveals the strategies that startups and mid-sized companies can use to protect themselves in this high-stakes environment.
The cornerstone of protection starts with thorough patent searches before product release. As Milano explains, conducting searches months before final engineering allows companies to identify potential infringement risks and adjust designs accordingly. This proactive approach helps avoid the nightmare scenario of receiving a cease-and-desist letter after significant investment in product development.
The financial reality of patent litigation creates a significant power imbalance. Large corporations maintain litigation war chests as part of their business strategy, while smaller companies rarely have the resources to sustain lengthy legal battles. This disparity often forces innovative companies to abandon promising technologies or sell their intellectual property under duress. However, Milano outlines several defensive strategies that level the playing field, including comprehensive portfolio analysis and strategic patent planning.
For medical device companies considering eventual acquisition, patent strategy takes on additional importance. Milano recommends maintaining "open patent families" through continuation applications, which significantly increases company valuation during acquisition talks. Many large companies acquire smaller competitors specifically for their patent portfolios, particularly when those patents could be asserted against other market players. By understanding these dynamics and implementing a holistic approach to intellectual property protection—including patents, trademarks, and strategic trade secrets—small medical device companies can navigate the challenging landscape of patent wars with confidence. What steps will you take to protect your next medical innovation?