BlueIron IP skewers traditional patent attorney role with unique investment model
FOR IMMEDIATE RELEASE
Jan 18, 2016
LOVELAND – Protecting a startup’s intellectual property is one of the most important milestones for any new tech-based business and one of the biggest factors for success, but conventional patent attorneys can make it a costly and confusing journey.
BlueIron IP offers an alternative path toward patent protection that startups can depend on because patent attorney Russ Krajec, BlueIron’s founder, understands the patent process from both sides of the issue.
Krajec, a former engineer, inventor and startup founder, is offering his hard-won insider’s expertise to help startups avoid the pitfalls that can surround the patent process.
He does it by honestly assessing the potential of a startup’s intellectual property and investing $60,000 or more of his own money to help those with patent-worthy IP make it through the process much faster than they otherwise might – and with much better results.
“I’m going to invest in these assets and make sure they have real commercial value,” says Krajec. “I do the due diligence beforehand, and when we expedite it through the Patent Office we can usually get a patent within 12 months. It can be five years or more doing it with a typical patent attorney, and many startups fail before ever seeing the benefit of the patent for their business.”
Krajec said he has two questions in mind when deciding to take on a startup client: Is it patentable, and does it make business sense?
“Most patents are worthless,” he says, noting that this fact often doesn’t matter to a typical patent attorney who is only interested in billing for their hours – which can add up fast.
BlueIron finances a startup’s intellectual property using a conventional commercial lease-back model, saving the startup precious money it needs to build a product and enter the marketplace.
“As with any commercial lease-back, the startup has an option to buy out the asset at any time, but with its exclusive license it can still enforce the asset, license it out, or use it to control its market during the ‘leasing’ period.
“A company becomes much more valuable to investors after they have exclusive control of their market through this arrangement, and they are really happy because our money – not the investor’s money – is used to get the patents,” says Krajec.
Krajec says having someone who believes in the intellectual property is what BlueIron does.
“Curating the invention is part of getting the value out of it,” he says. “Picking the right invention – and making sure it has real commercial value – is the key to getting patents that have teeth for a startup.”
BlueIron’s unique business model launched in September 2014, and Longmont, Colorado-based Smart PCM Products is one of the firm’s satisfied clients.
Joe Parker, Smart PCM Products owner, said he turned to BlueIron after a prior patent attorney experience went sour.
“I’m not a big fan of the (patent) process or dealing with patent attorneys,” says Parker. “It was just getting out of hand in terms of costs.”
Parker says finding BlueIron’s Russ Krajec was just what his company needed.
“His business approach for patents is quite unique and innovative. So far it’s gone very well.”
BlueIron helped Smart PCM successfully file for two patents and a third is in the works. Parker says it was refreshing to find a patent attorney willing to align his interests so closely with a client.
“Their incentive is if they think it’s a viable patent application, they’ll put in the work because they see it is viable,” he says. “His work is betting we get a successful business patent that has value.”
Parker says BlueIron has taken a lot of pressure off his company during the often exasperating patent process.
“Filing patents is a never-ending money hole, like owning a boat,” he said. “It’s complicated and you can’t get in the game without knowing what you’re doing.”
In addition to getting help from someone who knows a viable patent when he sees one, Parker says Krajec has helped relieve his fledgling company’s money worries.
“You don’t have to raise money to do that (patent) work,” Parker says. “He’s probably spent $25,000 to $30,000 in costs that we didn’t have to spend. For us, it was a good fit and instilled a lot of confidence in me and my partners.”
Krajec says his investment business model overcomes the potential malpractice issues that inhibit many patent attorneys from going the extra mile to represent a client.
“I invest in patents and finance patents, but I don’t represent the company,” he says. “This allows me to have an objective view of the patent’s value and invest accordingly.”
Krajec says he thinks his business model holds the key for a faster, more successful path for small businesses.
“Because we have skin in the game, we make sure the assets have real value, and our financing frees up precious cash when it is needed the most.”
For more information about BlueIron IP, call 970-776-4355 or visit www.blueironip.com.