>>>If your company is based pure on the advantage of a proprietary algorithm chances are they won't be around long as others catch up.
>
>There are two ways to try to protect IP:
>
>1) Patent it.
>2) Keep the mechanism secret.
>
>I agree it is impossible to keep the mechanism secret if you distribute apps. But if you deliver services, it is much easier to keep the mechanism secret.

Very good point. However, I'd also venture to guess that things that are proprietary often are the kind of things that are not 'servicable'.