Perspectives: Opinions from our network of advisors, investors, operators and analysts on the risks and opportunities they see.
Just as journalists once viewed the internet as a place where “information wants to be free,” software developers have embraced open source software as a great democratic innovation.
Unfortunately, as those fashioning some media models have discovered, commoditizing key aspects of your business model has significant downsides. In the run up to an IPO or a new round of funding, investors will rightly ask “is your IP defendable?” The more open source development involved, the trickier that answer gets.
Rhonda Carniol leads early startup advisory at the New Jersey law firm Chiesa Shahinian & Giantomasi PC. She’s seen this problem — and the lower valuations it can cause — first hand. Carniol spoke with Karma Network’s Contributing Editor Michael Moran.