From the Austin Business Journal, December 14, 2012 by Robert Grattan
One of Qcue Inc.’s competitors has thrown it a curve ball.
Executives at the Austin-based startup set out to dynamically price tickets to sporting events. But for the last several months they’ve had to balance their growth against a protracted legal battle with a competitor, Digonex Technologies Inc., which alleges that Qcue has infringed on its patented dynamic pricing system.
Qcue recently won a decision and had the case transferred to Travis County. The company has also filed a reciprocal suit against Indiana-based Digonex. But the startup has still found itself defending a service while trying to build a successful company.
It’s a situation that’s not rare for startups, especially in industries that have the potential to shake up existing business models, said Kevin Koym, the founder of Tech Ranch® Austin.
Many startups that are starting to gain traction will set aside money to fund legal battles later if necessary, he said.
But even then, legal problems still sink a significant amount of new businesses before they can gain ground, Koym said.