Benchmarking competitors’ IP strategies can be misleading and counterproductive for startups. While you see only their published patents—a small fraction of their true IP position—you risk building a reactive strategy that copies visible moves without understanding intent, overlooks critical trade secrets, and dilutes your unique competitive advantage. A strong IP strategy should reflect your own technology roadmap and business model, not mimic industry norms.
That’s a question I hear from CEOs and founders — especially in startups developing new technologies side-by-side with peers. On the surface, it sounds like good business sense: “If they are building in the same space, shouldn’t we understand what they are protecting and how?”
The Logic Behind Benchmarking
The impulse is perfectly logical. Leaders benchmark almost everything — salaries, marketing performance, production efficiency, fundraising rounds. Benchmarking gives a sense of orientation: Are we doing enough? Are we missing something? Are we aligned with industry norms?
When it comes to IP, though, the comparison becomes misleading. IP strategy is not an operational metric — it’s a strategic reflection of your company’s identity, risk appetite, and long-term vision.
You might see a competitor filing aggressively and think: “We should match that pace.” But you don’t know whether their filings are defensive, investor-driven, or part of a licensing play. You might notice they are patenting specific features and assume they are essential — but maybe those features are a diversion from their true core technology.
And even more importantly, the public patent record shows only a fraction of the IP landscape. Patents are published by design — they’re meant to disclose. But trade secrets, know-how, proprietary processes, algorithms, formulations, or cell culture conditions — these are never published. They’re invisible to your benchmark, yet often represent the real competitive edge.
So when you try to benchmark a competitor’s IP strategy, you’re really comparing your full internal story to their visible tip of the iceberg (and possibly, to the wrong tip).
The Downside of Copying Your Competitors’ IP Moves
When benchmarking drives your decisions, your IP strategy becomes reactive.
- You might chase filings that don’t serve your real business goals
- You might spend resources protecting the wrong technologies — because they look similar to your competitor’s
- Worst of all, you risk losing your unique IP narrative, blending into the crowd instead of standing out
A Real-World Scenario: The Investor Question
Imagine this: you are pitching to a potential investor, and they ask: “Why is your IP strategy different from your competitors? Are you missing something?”
Here’s your opportunity. A thoughtful, independent IP strategy is a strength, not a weakness. You can explain:
- “Our IP decisions reflect our unique technology roadmap and business model — not a copy of someone else’s filings”
- “We focus on the areas that give us a defensible advantage, including both patents and trade secrets, which are invisible to competitors but critical to our strategy”
- “Our strategy is designed to maximize long-term value, not just mimic industry norms”
A CEO who can articulate this clearly signals both strategic discipline and confidence — and reassures investors that the company isn’t blindly following the herd. This is especially important during IP due diligence, where investors evaluate not just what you’ve filed, but why.
What Works Better: An Independent, Trusted IP Strategy
A strong IP strategy starts from your own DNA — your technology roadmap, your business model, your investors’ expectations, and your future exit or licensing vision.
Competitor intelligence is still valuable — but it should be treated as context, not guidance. Working with strategic IP guidance for startups helps interpret that landscape strategically, identifying where you can do better.
Trust your IP director, let them design a path that reflects your strengths and ambitions — not someone else’s filings. That’s how you create real defensibility: by building an IP position others can’t easily follow.
Conclusion
So next time you are tempted to ask, “How do we compare to X?”, try instead: “What IP strategy best positions us for the future we’re creating?”
Benchmarking may make you feel safe. Independent thinking will make you valuable.
Key Takeaways:
- Design strategy from your DNA, not competitors’ filings – Build IP protection around your unique technology roadmap and business model rather than mimicking visible patent activity
- Recognize the iceberg effect – Public patents represent only a fraction of competitors’ IP; trade secrets and know-how remain invisible but often matter more
- Use competitor intelligence as context, not guidance – Treat competitive analysis as market awareness while maintaining an independent strategic direction that reflects your strengths
