Start-ups Log: IPR, Mårten Mickos, ArcticEvening! Kassi reports

Start-ups log is a series of blogs showcasing what the BootCamp teams go through. You get a insider’s point of view of what BootCamp really is about.

BootCamp Module 2, Day 2

IPR morning

Tuesday started with an overview on IPR (Intellectual Property Rights). Janne Aaltonen introduced us to the regulations behind the familiar TM and ® symbols. It came as a surprise that anyone can actually start using the TM, and only the ® needs an official registration.

The patent matters feel less important for our project Kassi, but the topic raised many good questions from other bootcampers. Many new an partly surprising things were learned, like the facts that the patent only gives you right to exclude others from manufacturing, selling, etc. the patented thing, but you have the responsibility to contact any violator and tell them to stop. Until that anyone can use the patented technology.

However, we also heard stories of cases (like Google vs. goto.com), where patent owners have been approaching the violators after their busines had been built on a patented technology for years. As you can guess, it did not end up being very cheap for Google. So, you’d better not build your startup on patented technologies, even though you could probably do business freely for couple of years undisturbed. The patent can still block the way to world domination, for up to 20 years in the worst case.

On the other hand, managing to patent your own invention in critical countries will work as a nice roadblock for your competitors. The patent might also help competitors though, since an idea (like an algorithm) that might otherwise be a business secret is described very openly in the patent application that anyone can view. Furthermore, everyone should keep in mind that aiming for a patent is practically the only reason to keep mouth shut about ones ideas.

In general, the IPR session left us a feeling that we’re lucky we do not have to deal with patents in our business idea.

Free afternoon

The most interesting event of the day was the keynote of former MySQL CEO Mårten Mickos. The keynote was about making money out of something that is originally free, which suited us well since that’s exactly what we are trying to do with Kassi.

An important point Mickos made that had been introduced many times previously in the BootCamp was that even though the money has to come from somewhere, it might not come directly from the users of the service. Or, as Mickos put it, “you have to delight somebody to create a business, but those who are delighted are not necessarily the same who pay”.

There are different business models for free software, but Mickos mostly focused on the freemium model. He noted that it’s important when offering free software to people that they are told right then and there that they eventually need to pay for it, if that’s the case. Moreover, you need to make a strong case on why the customer should move to the premium version.

When going open source, the importance of the community is highlighted. The community can offer a lot: people point out bugs, develop the software themselves, offer suggestions and give feedback, and what’s maybe even most important, defend you when others attack you. What’s extremely important is that you stay calm and friendly even when facing harsh and indiscreet feedback from your community, and try to learn from that. After all, as Mickos noted quoting Charles Darwin: “The one who will thrive and survive is not the strongest or the most intelligent but the one who is ready to change.”

When discussing entrepreneurship in general, Mickos pointed out that most important thing for an entrepreneur is to know him/herself. The idea of the company should be based on what the founders want. For example, Mickos wants to be a growth entrepreneur and reach for the stars. Someone else might instead like to grow their business slowly and do everything their own way. Good examples of this approach are software companies like 37signals and Joel Spolsky’s FogCreek Software.

Mickos also touched the concept of failing fast that all the BootCampers are very familiar with. “Slow no is the worst kind of no.” He also noted that you learn a lot from failures. However, an interesting new book ReWork by 37signals – that was mentioned in a question from the audience – claims that learning from your mistakes is overrated. A Harvard Business School study found that while people who have succeeded before are more likely to succeed in the future than others, the ones who have failed before have the same success probability than the ones who have never even tried. Taneli Tikka also noted in his presentation in the first day of BootCamp that you actually learn more from successes than from failures. This probably goes back to the previous lesson: all people are different, and have different ways of learning and succeeding. That’s why the most important thing is to know yourself.

Arctic evening

For a nice entrepreneurship-minded ending of the day many boot campers headed to Korjaamo for Arctic Evening. It gathered together lot of entrepreneurs and those willing to become ones to listen to panel discussion and to network over a beer. During the panel our team felt a bit exhausted, maybe due to the fact that we had recently attended quite a few similar panel discussions. Thus, as often is in this type of events, the most interesting part was actually the free discussion and networking. We even got a good idea for our business model just before the closing signal. (Thanks Raine and Peter!)

If the sponsored drinks made it difficult for some to remember all the teachings of the panel, the first touches on an iPad are hardly forgotten.

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