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Why should I found my innovative, game-changing startup in litigious America?

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Why should I found my innovative, game-changing startup in litigious America?

#1
I'm a young American entrepreneur who has spent the last five years (full-time) researching and building the technology for our Lisp startup.

Set aside the details for now, because they don't really matter to my question. Just assume for the sake of argument that our startup has something quite a bit more interesting up its sleeve than some new photo-sharing app---and that we proceed to draw the anti-competitive ire of the established players. (If you're not comfortable with that assumption, instead fantasize about one of your own startup ideas. It's much easier to imagine that those are great.)

Cutting to the chase: the more I learn about the U.S. legal environment for software businesses, the less I want to actually start my business here. Among other things, the depressing history of DMCA jurisprudence; the new Nortel Cartel; and the profound dysfunction of the USPTO (and increasingly, the Library of Congress) have got me in a funk.

To sum up: as our project becomes more exciting, my gut feeling becomes stronger that I should take it outside the United States. As an American I am profoundly saddened by this.

So, can anyone on HN explain convincingly why I should bet on America?

Re: Why should I found my innovative, game-changing startup in litigious America?

#3
OK, so then what do you propose as a better location?

What country offers a non-litigious society, allows outsiders to start and own a business, and has a tax basis that won't take all your money if you actually become successful?

Personally, I'm not aware of too many better options for an American than America, but I'd love to hear some viable alternatives.

Re: Why should I found my innovative, game-changing startup in litigious America?

#4
post #3

OK, so then what do you propose as a better location? What country offers a non-litigious society, allows outsiders to start and own a business, and has a tax basis that won't take all your money if you actually become successful? Personally, I'm not aware of too many better options for an American than America, but I'd love to hear some viable alternatives.

I don't know. Maybe Appsterdam? :)

Re: Why should I found my innovative, game-changing startup in litigious America?

#5
post #3

OK, so then what do you propose as a better location? What country offers a non-litigious society, allows outsiders to start and own a business, and has a tax basis that won't take all your money if you actually become successful? Personally, I'm not aware of too many better options for an American than America, but I'd love to hear some viable alternatives.

I am not trying to find a business environment that's better in some generic sense. I'm trying to find one where I can do this startup in particular and not get Netscaped.

Re: Why should I found my innovative, game-changing startup in litigious America?

#7
Here's a simple reason why: can you get the visas needed to move yourself anywhere else and can you find the resources you need in that country?

There are lots of places I would consider over the US, but in many countries to come in and start a business it will take showing that you can properly capitalize the business and provide for yourself until the business reaches profitability. You may be in tens of thousands in moving costs and legal fees before you even get yourself started in order to set up shop in a new place.

And, if your target audience is in the US, you may run into consumer perception or other problems if you are based elsewhere.

Re: Why should I found my innovative, game-changing startup in litigious America?

#8
post #3

OK, so then what do you propose as a better location? What country offers a non-litigious society, allows outsiders to start and own a business, and has a tax basis that won't take all your money if you actually become successful? Personally, I'm not aware of too many better options for an American than America, but I'd love to hear some viable alternatives.

Canada?

No healthcare costs (might have to become permanent resident, not hard to do). Low taxes for small business owners (tons of write-offs, lower tax rates). Less litigation. Very generous rules for foreigners to operate businesses. Close to US w/ easy travel. Short flights from major cities (re: Toronto, Waterloo, Ottawa, Montreal).

Re: Why should I found my innovative, game-changing startup in litigious America?

#9
Why the US? Legally: low taxes; generally no personal liability for corporate bankruptcy or failed contracts. Culturally: businesspeople are respected; no shame in having a failed business.

How would hardware patent trolling affect your software business? How would the DMCA affect your software business? (Rhetorical.)

I don't like patent trolling or the DMCA, but that doesn't mean I need to move to Oslo.

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