Intellectual property (IP) can make or break a startup—especially when you’re building in deep tech, biotech, AI, or blockchain. Some unicorns get it right early. Others learn the hard way. In this case study, we’ll walk through how several high-growth startups structured their IP the smart way—before the billion-dollar valuation hit. We’ll unpack their strategies, why they worked, and how you can apply the same thinking to your own venture.
Why Unicorns Care About IP Early
Before we dive into the case studies, it’s important to understand why startups that become unicorns treat IP like a priority from day one.
IP isn’t just about patents or trademarks. It’s about control. It protects the core of what makes the startup unique—whether it’s a machine learning model, a chemical formula, or a user interface design.
When investors see a startup with a clear, locked-down IP strategy, they see a company that’s serious. It signals maturity. It lowers the risk that a competitor could easily copy the core tech.
Investors Want Defensibility
Venture capitalists love growth. But what they love even more is defensible growth. That means scaling fast in a way that others can’t easily replicate.
Patents, trade secrets, and copyrights offer a legal moat. The stronger the moat, the more secure the investment.
So even if a startup is burning cash in the early days, the fact that it owns a protected invention or a novel process gives it a powerful edge when raising future rounds.
Acquirers Look for Clean IP
A clean IP portfolio is often the first thing big acquirers check. If your tech is valuable, they want to make sure nobody else can claim ownership.
If the company has loose IP agreements, unclear inventor contributions, or shared ownership with universities or contractors, the deal can fall through—or the price drops.
That’s why the smartest startups document, protect, and centralize their IP from day one.
Case 1: Anduril – National Security Meets AI and Robotics
Anduril, the defense tech unicorn founded by Palmer Luckey, made headlines by building border security systems powered by AI and sensor networks.
Its value didn’t come from making drones—it came from building a full-stack autonomous defense system, one that learns and reacts in real-time.
IP as a System, Not a Product
Anduril’s early strategy was to patent the system, not just the parts.
Instead of filing separate patents for a drone or a camera or a software interface, Anduril filed for patents that showed how these pieces worked together.
That’s key. It made it harder for competitors to copy any one part of the tech without bumping into infringement risks.
This gave Anduril an integrated IP position, covering software, hardware, and the unique logic connecting them.
Why That Worked
In defense tech, governments aren’t just buying gear—they’re buying control. They want to know the entire system is secure and no third party can replicate it.
Because Anduril owned the key pieces, and how they interacted, it had a tight grip on its market edge.
This also helped with export licenses and regulatory clearances, which often require proof of original ownership.
Tactic You Can Use
If you’re working on a platform or ecosystem—don’t just protect the individual components. Protect the connections between them.
Think of your invention as a whole experience. Patent the sequence, the interactions, the method of integration. That’s what Anduril did.
Case 2: Stripe – IP in Fintech Is Subtle but Strategic
Stripe didn’t build hardware or biotech. It built one of the cleanest APIs for online payments—and quietly became one of the most valuable startups in history.
Its product seems simple on the surface, but Stripe’s edge is how deeply it integrates with developer workflows, compliance systems, and global banking rails.
IP Behind the Scenes
Stripe’s IP doesn’t sit in flashy patents. In fact, it used trade secrets more than patent filings early on.
The company’s secret sauce was buried in how it handled fraud, cleared payments across borders, and integrated with card networks like Visa and Mastercard.
This gave Stripe a hidden moat. The more data it collected, the better its engine became. And it didn’t have to disclose anything publicly like a patent would require.
Why That Strategy Worked
In fintech, copying the interface is easy. Copying the infrastructure is hard.
By keeping key parts of its logic, algorithms, and transaction handling private, Stripe avoided giving away any competitive advantage.
And because everything was locked under strong employee and contractor agreements, Stripe controlled the knowledge—even if staff moved on.
Tactic You Can Use
If your edge lies in a unique process, algorithm, or business method—consider keeping it as a trade secret instead of patenting it.
Patents are public. Trade secrets stay private. But only if your internal agreements are airtight.
Make sure everyone who touches the code signs NDAs and IP assignment clauses. Don’t skip this step, even with freelancers.
Case 3: Ginkgo Bioworks – Living IP in Synthetic Biology
Ginkgo is a synthetic biology unicorn that programs cells like software. It designs microbes that can produce fragrances, food ingredients, and even medicines.
Unlike SaaS startups, Ginkgo’s “product” is a living organism—genetically modified to perform specific tasks.
Patenting DNA as Code
Ginkgo structured its IP like a tech company, but with one twist: its inventions were genes.
It filed patents on engineered DNA sequences, the lab methods used to create them, and the software tools that helped automate those discoveries.
This gave the company a wide IP umbrella—not just the output, but also the process and the tools that created the output.
Why That Worked
Synthetic biology is a space where the line between biology and code is blurry.
By owning the full pipeline—from software to wet lab—Ginkgo was able to create a portfolio that covered not just products, but the entire development loop.
This made it attractive to pharma companies, food giants, and materials firms that wanted to license entire platforms, not just products.
Tactic You Can Use
If you work in biotech, AI, or any other field where the tool is as important as the result—protect both.
File utility patents on the output and method. Consider design patents or copyright protection on the tools or interfaces you build.
Also, invest in documenting your experiments. A clean lab notebook, digital or physical, can support your patent claims later if you get challenged.
Case 4: UiPath – Automation at Scale with Layered IP
UiPath is a unicorn in the robotic process automation (RPA) space. It built a platform that lets companies automate repetitive tasks—like clicking buttons or entering data—across software systems.
What made UiPath stand out wasn’t just its bots. It was how it turned automation into something anyone could use.
The IP Behind Accessibility
From the start, UiPath focused on usability. It created visual tools that let non-coders build automation workflows with drag-and-drop blocks.
So the company filed patents not only on the automation methods, but also on how those methods were made easy to access and modify.
This meant that even though competitors could build bots, they couldn’t copy how UiPath made bot-building approachable for everyday users.
It also protected elements like recording user activity and converting it into automation scripts—an elegant and powerful approach that UiPath owned legally.
Why That Worked
Ease of use created a bigger market. It moved RPA from IT departments into the hands of regular business users.
Because UiPath owned the underlying tech and the user-facing workflows, it locked in a wide user base and built a sticky platform.
That made the company hard to replace, even when competitors offered similar core tech.
Tactic You Can Use
If you’re building tools that rely on user experience—protect the UX itself.
Don’t overlook interface methods, layout logic, or the way user input is processed and turned into outcomes. These elements can be patented or protected by design rights.
Also think about how people interact with your system. The easier and more intuitive it is, the more valuable—and defensible—it becomes.
Case 5: OpenAI – Strategic Disclosures and Licensing in AI
OpenAI didn’t follow the traditional startup model. It began as a nonprofit research lab, then evolved into a capped-profit company.
But one thing remained consistent: it was always serious about controlling how its technology was used, distributed, and protected.
That led to a unique IP approach—part open, part closed, always strategic.
IP Through Model Releases
Rather than patenting every model, OpenAI often released its work under specific licenses.
In some cases, the code was open-source, but the weights (the trained model parameters) were kept closed. In others, full access was given, but with usage limits.
This allowed OpenAI to build influence and community support—while still protecting core commercial value.
It also filed patents when necessary, especially when it came to model training processes, fine-tuning methods, or tools related to reinforcement learning.
Why That Worked
AI is about data and scale. It moves fast. Traditional patent timelines often can’t keep up.
By mixing open research with closed deployment, OpenAI shaped the AI ecosystem. It allowed developers to build on top of its models, while retaining ultimate control.
This created dependency. That dependency turned into market power—without locking everything behind legal walls.
Tactic You Can Use
If you’re in AI or any fast-moving field, consider a hybrid IP strategy.
You don’t need to patent every piece. Sometimes, giving limited access builds goodwill, user adoption, and industry dominance.
Use licenses wisely. Control distribution, use cases, and commercial deployment. Make sure your terms of use are tight, clear, and enforceable.
That’s IP protection through structure, not just law.
Case 6: Illumina – Genomics Unicorn With Layered Patents
Illumina is a leader in genome sequencing. While it’s now public and massive, its unicorn phase offers a lot to learn.
Sequencing tech is a blend of biology, chemistry, optics, and software. That’s a wide canvas for IP—and Illumina painted across the entire thing.
Owning the Stack
From the very beginning, Illumina didn’t just focus on the chemical side. It patented hardware designs, signal processing methods, reagent compositions, and the software pipelines that turned raw signals into readable genetic data.
It also created proprietary formats for storing and visualizing the sequences.
By locking down the full process—sample in, sequence out—it became the gold standard for researchers, labs, and healthcare companies.
Why That Worked
In genomics, switching platforms is hard. Once you’ve run thousands of samples through one system, moving to another can break workflows and analysis pipelines.
By owning every step of the chain, Illumina made itself indispensable. Its IP blocked others from copying even parts of its method.
This allowed it to grow fast and license out access to various elements of its stack—bringing in steady revenue as it expanded.
Tactic You Can Use
Think beyond your main product. If you’ve built a process with multiple stages—hardware, software, inputs, outputs—each step may be patentable.
Protect the full journey. Don’t let a competitor slip in through a side door.
Also remember that formats and data outputs matter. If your system uses a unique structure to handle information, that structure can be a powerful IP asset.
Case 7: Epic Games – Owning the Engine Behind the Experience
Epic Games, the company behind Fortnite, is best known for entertainment. But its real IP power lies in Unreal Engine—a widely used 3D engine across gaming, film, and even automotive design.
Unreal isn’t just a game engine. It’s a platform. And Epic structured its IP to reflect that.
Owning the Tools
Epic built and protected a suite of tools that developers use to create immersive experiences. It filed patents on rendering techniques, physics systems, lighting models, and more.
But more than that, it retained control over how Unreal was licensed.
Even when it gave the engine away for free, the terms allowed Epic to collect royalties once a product hit a revenue threshold.
That meant Epic didn’t just protect its software—it protected how value created with the software flowed back to the company.
Why That Worked
By embedding its tools deep into the content creation pipeline, Epic ensured that it always had a seat at the table.
Even companies that didn’t care about Fortnite were building billion-dollar franchises using Unreal.
Epic’s licensing model turned this usage into cash—while the patents prevented others from duplicating the most valuable features.
Tactic You Can Use
If you offer tools, engines, or APIs—structure your agreements to create long-term value.
It’s not just about protecting code. It’s about shaping how that code creates business outcomes, and how your company captures a piece of that value.
Make your licensing model part of your IP strategy. You’re not just giving software. You’re selling growth.
Case 8: Glossier – Beauty Brand With Invisible IP Strength
Glossier wasn’t built on code. It didn’t patent a new molecule or invent breakthrough hardware. What it built was community, aesthetic, and trust—all of which became part of its IP strategy.
But Glossier still took intellectual property seriously. Not through engineering patents—but through rigorous brand protection.
Trademark as the Core Asset
Glossier understood that in beauty, brand is everything. So it aggressively trademarked not just its name, but its product names, slogans, packaging designs, and even colors.
Each shade, each label, each unique container shape—if it was distinctive, Glossier filed to protect it.
This created a ring-fence around its identity. Copycats couldn’t piggyback on the same style without legal consequences.
And when influencers began showcasing products, that distinctive look carried instant brand recognition. That recognition became enforceable IP.
Why That Worked
Beauty is a crowded space. Packaging, branding, and voice often matter more than the formula itself.
Glossier’s customers didn’t just buy products—they bought into a look and feel. Trademarking that feel gave Glossier a hard edge in a soft category.
When other brands tried to mimic its pastel tones or minimal vibe, Glossier could challenge them.
It also made the brand more valuable to retailers and partners. Nobody else could replicate the full experience.
Tactic You Can Use
If you’re building a consumer brand—especially DTC—trademark everything that customers see and remember.
That includes color schemes, bottle shapes, taglines, product bundles, and even sounds or animations on your app or site.
The moment you hit scale, others will copy you. Protect now, before you grow.
Case 9: Figma – Design Tool With Defensible Collaboration
Figma disrupted design by doing one simple thing better than everyone else—it let designers collaborate in real-time on the web.
Unlike Adobe, which was rooted in desktop software, Figma treated design like Google Docs. That shift in workflow became the foundation of its IP.
Protecting Interaction, Not Just Output
Figma didn’t invent rectangles or layers. What it did was reimagine how designers worked together.
Its core innovation was real-time multiplayer editing, seamless comment threads, and version control that felt effortless.
So Figma’s IP covered the experience of collaboration. It filed patents around synchronization, interface flow, permissions, and interface logic.
And it wrapped it all in a clean SaaS offering with a freemium-to-paid model that created lock-in.
Why That Worked
Designers didn’t switch to Figma because it had more tools. They switched because working together was easier.
By protecting those collaboration flows, Figma made sure competitors couldn’t easily clone the exact same feel.
And since design teams often work cross-functionally, once one department used Figma, others followed. That expansion made its user base explode.
Tactic You Can Use
If your product wins because of how people work together—protect the collaboration experience, not just the output.
Think about roles, access, workflows, handoffs, notifications. These small things create big stickiness.
File utility patents if your system processes data in a novel way. And don’t forget to back it up with a tight terms-of-use agreement that reinforces your rights.
Case 10: Discord – Community-Led IP for Network Moats
Discord started as a voice chat for gamers. Today, it’s used by communities across music, startups, finance, and education.
What made Discord stand out was how it blended audio, chat, roles, bots, and moderation into one seamless community experience.
That mix—while technically replicable—became powerful because of how it was protected and grown.
IP Meets Community
Discord filed for protection of its infrastructure: the way channels are organized, how permissions are set, and how bots integrate.
But beyond that, it leaned into network IP. It created an experience that others couldn’t easily reproduce—even with similar tech.
That included proprietary emojis, sound cues, notification sounds, and user experience touches that created deep attachment.
Every server felt custom. Yet the platform was centrally controlled. That balance gave Discord both scale and uniqueness.
Why That Worked
In community platforms, the real asset is people. But if your UX is easy to clone, those people can leave.
Discord’s IP—both in code and culture—made it hard to recreate. And its licensing rules for bots and integrations kept third parties from building clones too freely.
It also acquired smaller tools it saw emerging in the ecosystem, folding them into the core platform before they could splinter user attention.
Tactic You Can Use
If you’re creating a network or marketplace—lock down the small things that make your space unique.
That includes sounds, interactions, plugins, or user hierarchies. Own the language your users speak. Make your onboarding flow hard to copy.
When the community starts growing around those elements, your IP isn’t just legal—it’s emotional.
How Founders Should Structure IP From Day One
You don’t need to be in AI or biotech to think strategically about IP. In fact, some of the most defensible startups got ahead because they locked down their assets before the world paid attention.
Whether you’re writing code, crafting a physical product, designing experiences, or curating a brand—your IP is worth protecting. And the earlier you start, the easier it gets.
Here’s a founder playbook based on what the unicorns got right.
Step 1: Identify the Real Edge
What exactly makes your startup hard to copy?
It might be your algorithm, a user experience flow, a visual interface, your product’s formulation, or how you deliver something behind the scenes.
Write it out in plain language. Don’t worry about legal terms yet. Just describe the magic.
Now ask: if someone were to copy this tomorrow, what would I lose? That’s the piece you need to protect.
Step 2: Decide Between Patents, Trade Secrets, or Trademarks
Not every edge needs a patent.
If your edge is a novel invention, method, or machine—yes, patent it. But if it’s a process that changes weekly or depends on private data, keep it as a trade secret.
For anything visual or brand-related—go for trademarks, and where applicable, design patents.
The mistake most founders make? They wait until a competitor appears. By then, the window for clean protection is already closing.
Step 3: Get Your Agreements Locked Early
Most unicorns protected their IP not just through filings—but through paperwork.
Every contractor, intern, freelancer, or co-founder who touches your product should sign two things:
- An IP assignment agreement that transfers their work to the company.
- A confidentiality agreement (NDA) that prevents them from sharing or reusing it elsewhere.
This is non-negotiable. Don’t build without it.
And yes, even your best friend who’s helping with mockups should sign one. Relationships change. IP lives forever.
Step 4: Create an IP Audit Trail
Document your work. That means keeping track of code commits, product design iterations, lab results, or user interface mockups.
You want a trail that shows:
- What you created.
- When you created it.
- Who contributed.
If you ever have to prove ownership or priority (especially in a patent dispute), this documentation is your strongest shield.
Many startups use version control tools like GitHub, Notion, or cloud drives. But don’t just store the files—label them. Explain decisions. Make the trail easy to follow.
Step 5: File Smart, Not Fast
Founders often think they need a ton of patents early on. That’s not true. You need the right ones.
A single well-written patent that protects the core system or method can do more than ten shallow ones.
When you do file, work with a patent attorney who understands your space—and your business model. The best IP protects value creation, not just technology.
For example, if your model depends on users uploading content in a certain way, file around that method—not just the software behind it.
And if you’re not ready to file yet, consider a provisional patent. It gives you a one-year head start, letting you claim “patent pending” while you refine your tech.
Step 6: Layer Your Protection
Think of IP like armor. You don’t wear just one piece. You layer it.
You might start with a utility patent. Then add trade secret protections for your analytics layer. Then trademark the product name and logo. Then copyright the UI icons or animations.
Each piece covers a different angle. Together, they form a wall.
The unicorns didn’t rely on one type of IP. They combined multiple layers to make copying expensive and risky.
Step 7: Review and Update as You Grow
What you protect at the seed stage may not be what you need at Series B.
As you launch new features, expand into new markets, or bring in new team members—revisit your IP.
Ask:
- Is everything filed still relevant?
- Are new innovations protected?
- Do employees still have valid agreements in place?
Many growing startups neglect this. It’s only when an M&A deal starts or a lawsuit lands that they realize something slipped.
A quick quarterly review of your IP position—done with your counsel or even internally—is often enough to stay sharp.
Final Thoughts: IP Is Culture, Not Just Paperwork
The real lesson from the unicorns?
They didn’t treat IP as a one-time checklist. They treated it as part of the business model.
Anduril saw IP as control over systems. Stripe kept its moat hidden but airtight. Ginkgo treated lab results like code. Glossier protected aesthetic like software protects logic. Figma made workflows patentable.
IP is not about being aggressive. It’s about being deliberate.
It’s what lets you move faster, speak louder, and sleep easier—because your edge is yours, and the law backs you up.
So no matter what you’re building, treat your IP like your product. Design it. Defend it. Make it part of your story.
That’s how unicorns are born—and how they stay standing once they grow.
