Building a Patent Portfolio on a Budget

Building a Patent Portfolio on a Budget

You have multiple innovations worth protecting. But at $30,000-$50,000 per patent through BigLaw, building a meaningful portfolio feels impossible. Most mid-market companies face a frustrating choice: patent one or two things and hope for the best, or skip patents entirely.

There’s a better way. With strategic planning and the right partner, you can build a strong patent portfolio without breaking the bank. Here’s how.

Start With Prioritization

Not every innovation deserves a patent. Before spending anything, rank your inventions by business value.

High Priority (Patent First)

  • Core differentiators — Features that make customers choose you over competitors
  • Revenue drivers — Technology directly tied to your biggest product lines
  • Barriers to entry — Innovations that would take competitors years to replicate
  • Licensing candidates — Technology others might pay to use

Medium Priority (Patent Later)

  • Improvements to existing products
  • Manufacturing process innovations
  • Features that enhance but don’t define your product

Low Priority (Consider Skipping)

  • Incremental improvements with short commercial life
  • Features easily designed around
  • Technology that will be obsolete in 2-3 years

Key insight: Five strategic patents protecting core technology are worth more than fifteen weak patents scattered across minor features.

Use Provisionals Strategically

Provisional applications are your budget’s best friend—if used correctly.

The Smart Provisional Strategy

File provisionals to buy time. At $2,000-$4,000 each, provisionals let you lock in a priority date while you evaluate commercial potential. You have 12 months to decide whether to invest in a full non-provisional.

Test the market first. File a provisional before a trade show or product launch, then see how the market responds. If customers don’t care about that feature, you’ve saved $15,000+ by not converting.

File multiple provisionals, convert selectively. If you have five potential inventions, file five provisionals ($10,000-$20,000 total). After 12 months, convert only the two or three that proved commercially valuable.

Pro tip: Find a firm that credits provisional costs toward the non-provisional. When the invention hasn’t changed substantially, this saves $2,000-$4,000 by avoiding duplicated work.

The Provisional Trap to Avoid

Don’t file weak provisionals just to say you filed something. A provisional that doesn’t fully describe your invention won’t support your later claims. You’ll lose your priority date and waste money.

Space Out Your Filings

You don’t need to patent everything at once. A phased approach spreads costs over time.

Sample 3-Year Portfolio Plan

Year Action Estimated Cost
Year 1 2 provisionals (core tech) + 1 non-provisional (flagship product) $18,000-$26,000
Year 2 Convert 2 provisionals + 1 new provisional + respond to office actions $28,000-$42,000
Year 3 1 new non-provisional + continuations + office actions $20,000-$30,000
Total 5-6 patent applications over 3 years $66,000-$98,000

Compare that to BigLaw pricing for the same portfolio: $150,000-$250,000+.

Leverage Continuation Practice

One well-drafted parent application can spawn multiple patents through continuations—often at lower cost than filing fresh applications.

How Continuations Work

A continuation uses the same specification (description) as your original application but with different claims. Because the technical writing is already done, continuations cost less—typically $6,000-$10,000 versus $12,000-$18,000 for a new application.

Strategic Uses for Continuations

  • Claim different aspects — Your original patent claims the device; a continuation claims the method of use
  • Capture improvements — As your product evolves, file continuation-in-parts that add new matter
  • Build claim diversity — Multiple patents with different claim angles are harder to design around than one patent

Key insight: A single strong parent application can generate 3-5 related patents over time, multiplying your portfolio without multiplying your drafting costs.

Be Strategic About International Filing

International patents are expensive. A single PCT application plus national phase entries in Europe, China, Japan, and Canada can cost $50,000-$100,000+.

When International Makes Sense

  • You have significant revenue (or plans) in that market
  • Competitors or copycats operate there
  • Manufacturing happens there (to block local production)
  • Licensing opportunities exist in that region

When to Skip International

  • Your market is primarily U.S.-based
  • The technology will be obsolete before you’d enforce overseas
  • You have no realistic way to monitor or enforce in that country
  • Budget constraints mean choosing between U.S. depth or international breadth

Common mistake: Filing internationally “just in case” burns budget that could fund additional U.S. patents. Four strong U.S. patents usually beat one U.S. patent plus thin international coverage.

Budget-Friendly International Options

Start with PCT. A PCT application (~$5,000-$8,000) buys you 30 months to decide which countries matter. You don’t pay national phase fees until you’re certain.

Prioritize strategically. If you must file internationally, pick one or two key markets rather than filing everywhere. China for manufacturing control. Europe for your biggest export market.

Choose the Right Partner

Your choice of patent counsel has the biggest impact on portfolio cost.

Cost Comparison: Same Portfolio, Different Firms

5-Patent Portfolio BigLaw Boutique Firm
Initial filings (5 apps) $125,000-$175,000 $60,000-$90,000
Prosecution (avg 2 OA each) $40,000-$60,000 $25,000-$40,000
Issue fees $5,000 $5,000
Total to Issuance $170,000-$240,000 $90,000-$135,000
Savings $80,000-$105,000

That’s not a quality difference—it’s an overhead difference. You’re paying for Manhattan rent, associate training programs, and layers of administration. None of that makes your patents stronger.

What to Look For

  • Technical expertise — An attorney who understands your technology writes better claims
  • Direct partner attention — Your work shouldn’t be delegated to junior associates learning on your dime
  • Transparent pricing — Fixed fees or detailed estimates, not open-ended hourly billing
  • Strategic thinking — A partner who helps you prioritize, not just file everything you ask for

Plan for Maintenance Fees

Patents require maintenance fees at 3.5, 7.5, and 11.5 years after issuance. Budget for these now—they add up as your portfolio grows.

USPTO Maintenance Fee Schedule (Large Entity)

Due Date Fee
3.5 years $2,000
7.5 years $3,760
11.5 years $7,700
Total per patent $13,460

Small entities pay half. Micro entities pay 75% less. Check if you qualify.

Portfolio math: A 10-patent portfolio costs $134,600 in maintenance fees over the full 20-year term. Factor this into your long-term IP budget.

Pruning Your Portfolio

Not every patent is worth maintaining. Before each maintenance fee comes due, ask:

  • Is this technology still commercially relevant?
  • Are competitors actually constrained by this patent?
  • Would we realistically enforce it?
  • Is the $2,000-$7,700 better spent on a new filing?

Letting weak patents lapse frees budget for patents that matter.

The Bottom Line

Building a patent portfolio on a budget isn’t about cutting corners—it’s about spending strategically.

  • Prioritize ruthlessly — Patent what matters most to your business
  • Use provisionals wisely — Buy time, test markets, convert selectively
  • Space out filings — Build your portfolio over 3-5 years, not all at once
  • Leverage continuations — Multiply patents from one strong parent application
  • Be selective internationally — Depth in the U.S. usually beats thin global coverage
  • Choose the right partner — 40-60% savings without sacrificing quality
  • Plan for maintenance — Budget for the full patent lifecycle

A strategic five-patent portfolio built over three years with a boutique firm will protect your business better than a scattered collection of weak patents rushed through BigLaw.

Ready to Build Your Patent Portfolio?

We help companies in the $5M-$100M range develop strategic patent portfolios at 40-60% less than BigLaw. Let’s discuss your priorities and build a plan that fits your budget.

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