The Role of Patents in Measuring Real Innovation

Innovation is the beating heart of capitalism and the foundation of societal advancement. From rudimentary tools and the wheel to the printing press, the Industrial Revolution, and the internet, each breakthrough rewrote what’s possible. Today, we stand on the cusp of equally transformative frontiers: quantum computing and artificial intelligence.

What enabled the acceleration of these innovations? Intellectual property. As early as the English Statute of Monopolies of 1624, society began formally rewarding inventors—providing exclusive rights in exchange for disclosure. This “knowledge-for-exclusivity” model became a catalyst for progress, fueling today’s breakthroughs in biotech, telecom, environmental science, and AI.

So, if you want to know who is creating value in the dawning AI era of adtech, look at IP, specifically the patents that represent it.

Why Patent Strategy Deserves Center Stage (Especially for Investors)

Despite the pivotal role patents play, they're often overlooked in startup investments. Here’s why—and why that’s a mistake:

1. Complexity – IP and patent landscapes are notoriously difficult to navigate.

2. Time Lag – Securing patents can take years from filing to grant.

3. Legal Risk – Litigation around patents can drag on for years and consume massive resources.

But precisely because patents are tough to secure, they carry extraordinary value. And let’s face it, adtech is full of BS assertions clothed in high-end powerpoints. Patents are based on real technology.  

Why Investors Should Care Deeply About IP

• Quantifiable Value: Startups with patents are up to 6.4× more likely to secure funding, and combining patents with trademarks can boost that to 10×.(cadetlegal.ai, Lightbringer)

• Performance Edge: Companies often see 80% higher sales in the years following their first patent, and they’re 50% more likely to raise venture capital. Valuations nearly double, IPO likelihood increases 5×, and M&A exits fetch 150% higher valuations.(Lightbringer)

• Competitive Defense: Patents create a defensible moat—shielding innovations from copycats and giving you leverage in the market.(cadetlegal.ai)

• Due Diligence Importance: Smart investors treat IP as an asset class. Patent due diligence reveals enforceability, ownership quality, and litigation risk, and helps align IP with broader strategic objectives.(qubit.capital)

AdTech: A Case Study in Capitalism-Driven Innovation

Ad tech exemplifies how capitalism and IP drive innovation:

• The internet, initially enabled through U.S. government funding, became the backbone for a flurry of new advertising models: banner ads, ad-serving infrastructure, paid search, ad exchanges, and so on.

• These groundbreaking developments rival innovations like the assembly line or the printing press in terms of their economic and societal impact.

• Crucially, each is anchored in IP, protected and formalized through patents, ensuring creators benefit while society moves forward.

Our Approach at tvScientific: IP as a Core Strategy

Since our inception, we at tvScientific have prioritized innovation:

• Built and documented a clear technical roadmap from day one.

• Filed for and been granted eight patents to date, with several more pending.

• Focused our IP strategy on long-term, structural innovation in performance TV—covering measurement, attribution, and outcome optimization.

• These patents span essential optimization levers including thousands of variables such as pricing, inventory selection, show selection, frequency tuning, 1st and third party data and creative element-level adjustments—to deliver measurable outcomes on TV campaigns.

In Summary: IP Drives Value, Investors Know It

Patents aren’t for check-the-box reassurance—they are clear signals of defensibility, long-term vision, and monetizable technology. The ROI of a well-planned IP strategy is evident—in funding success, revenue growth, valuation multiples, and exit opportunities.

Patents are more than protection. They’re a strategic lever. They are proof of innovation.  And those who wield them well are rewarded.