Analyzing Inventions

IP Due Diligence Checklist

Due diligence is essential for any business deal, and IP due diligence is shockingly left out of the equation for most angel investors and venture capital investors. Due diligence is hard work. Doing it well will get your hands dirty. Introduction to IP Due Diligence Any due diligence exercise, especially IP due diligence, involves turning…

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Detectability is a Key Factor for Patent Value

Updated 16 Jan 2022. Patents Need to be Detectable. This may appear to be an obvious statement, but people pour money into patents where infringement simply cannot be detected. Here’s a case where undetectable software claims were thrown out of federal court. When looking at an invention (or an issued patent), one of the first…

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How to Find a Realistic Patent Value

(Updated 27 Dec 2021.) A realistic patent valuation can be determined using many of the same techniques used to value businesses. However, it all depends on whether someone is actively copying your invention. How to value a patent all depends on whether there is product in the market – not how “cool” the invention is.…

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Do Startups Give Up On Their Patents?

Patent valuation can be inferred from how much effort an applicant puts into their patent.  One of the common criteria for the more sophisticated patent scoring algorithms is the number of continuation applications. Having a pending application in a patent family is a huge asset. A pending application allows you to create new patent claims…

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Terminal Disclaimers – One for the Price of Two

Terminal disclaimers are costly for the client – but an easy money maker for patent attorneys. Terminal disclaimers are where you pay twice to get the same thing. They are a money maker for the USPTO – and your patent attorney.  They should be avoided at all costs.  In most cases, a terminal disclaimer is…

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Data Driven Patents

Updated April 2021. The patent system requires that we look ahead and guess the future.  If we are right, there is a huge reward.  This process can be powerfully addictive, as it is the same psychology as lottery tickets. Patents are bets that the marketplace will adopt a technology.  The interesting characteristic is that the…

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Patent Myths – “Broad Claims are a Good Thing.”

Inventors like to think that their patents are “broad” and somehow that is good.  It is not. The risks with broad patents are that they are more easily invalidated, but it is basically a sales pitch that patent attorneys use to make more money. Narrow patents are bad, too. (Learn more about this and other…

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Inventions Where BlueIron Does NOT Invest

There are some inventions where BlueIron will NOT invest. I see an obnoxious number of inventions and patents from startups. I estimate that I encounter 10-20 inventions per week lately, and many are not good candidates for us to invest. It is heartbreaking to say “no” to inventors where the invention does not seem to…

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Investment Grade Patents Do Not Have “Broad Claims”

Broad patents can hurt you. Inventors like to think that their patents are “broad” and somehow that is good.  It is not. The risks with broad patents are that they are more easily invalidated, but it is also a sales pitch that patent attorneys use to make more money. Narrow patents are bad, too. Narrow…

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What Does A Quality Patent Look Like?

What does a quality patent look like? We evaluate patents every day.  We underwrite investments in intellectual property, either for financing patents before they are written or for providing loans against patents that already exist.  After doing this for a long time, there are certain elements that we evaluate every time we pick up a…

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