This article is only my opinion an should not be taken as legal advice. For advice on whether you should patent your idea or keep it secret, consult a qualified patent attorney or patent agent.
My Sales Manager sent me this article Should Microsoft Patent . I think its a good example of what can happen to the patent portfolio of a large software company. Most small software companies are not in the situation the article describes for Microsoft . ( having deep enough pockets to attract an army of patent lawyers).
The article suggests that Microsoft would be better off if it kept its software secret (Trade Secreting) . This is probably a good strategy for companies that have a "hard to duplicate" chemical process like Coca Cola, but I doubt that this is the case for most software inventions because they are based on common protocols and procedures. Microsoft may be an exception to the rule because hiding access to the source code for a monster program like Windows might also make sense. However, most software isn't in that category.
Microsoft's situation is probably unique,and should not be taken as a model for small companies. In fact a small company's patents might put them in a position to sue the software giant, who might prefer settlement to another attack on their "deep pockets".
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