Ask HN: Incorporate first, develop later?

Posted by gilaniali on Tuesday May 31, 2011 @09:18PM
from the ask-hn dept.

With the rise of patent trolls and Lodsys actually filing against developers today, should all developers publish apps through limited-liability businesses or corporations rather than as individuals?

So, even if you get sued, you can take existing earnings as dividends and shut the company down without any personal ramifications, change the apps and republish through another company? Will this work?

( 6 comments | 4 points | on HN )

Re:Ask HN: Incorporate first, develop later? by JoeCortopassi on Tuesday May 31, 2011 @10:03PM (#2605586)

I'm actually very curious to hear from someone who has real world experience in this. $800 a year ( California ) is a big expense for me when I don't have a finished product, but I would hate to go bankrupt because someone like Lodsys rained on my parade

[ Parent | on HN ]

Re:Ask HN: Incorporate first, develop later? by pash on Tuesday May 31, 2011 @09:56PM (#2605558)

With some exceptions, yes, it will work, so long as you live in a jurisdiction that allows individuals to trade with limited liability. (The United States and every member state of the European Union do.)

Limiting liability is the prudent first step in doing business. It boggles the mind that so many developers never take that step.

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Re:Ask HN: Incorporate first, develop later? by gilaniali on Tuesday May 31, 2011 @11:58PM (#2605884)

What are the exceptions? Any legal source for your claims that this will work?

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Re:Ask HN: Incorporate first, develop later? by staunch on Tuesday May 31, 2011 @09:54PM (#2605546)

Not something to worry about unless you know you're working in an area with known patent trolls ready to pounce.

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Re:Ask HN: Incorporate first, develop later? by gilaniali on Tuesday May 31, 2011 @11:03PM (#2605765)

I doubt any of the developers being sued by Lodsys knew they were infringing on these patents.

And there is no sure way to know which small thing is under patent than to spend hours going through the patent archives or hiring expensive patent lawyers.

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Re:Ask HN: Incorporate first, develop later? by staunch on Wednesday June 01, 2011 @01:21AM (#2606082)

Yeah, and something like 7 out of 1 million developers are being threatened by Loadsys. Exactly my point.

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