A survey by the American Intellectual Property Law Association found that even patent litigation on the smaller end of the spectrum (i.e., less than $1 million at risk) typically exceeds $500,000 in legal fees. While these numbers might seem daunting to most any company, they are simply out of reach for most entrepreneurial start-ups. The cost of litigation, however, cuts both ways. That is, there is risk for patent holders and accused infringers. A focused patent litigation strategy (as opposed to a scorched-earth campaign) may go a long way to improving the risk/reward profile.
Finally, while the cost of patent litigation should never be overlooked, a more fundamental question may be what would happen to your new innovation without a patent?