Posts Tagged ‘Startups’
IP Theft by an “Angel” Investor
An angry “angel” investor commits federal crimes by stealing IP. How an investor stole intellectual property from a portfolio company. This is a true story. Sadly, predatory actions by so-called “angel” investors are more common than it should be. An angel investor has a portfolio of maybe a dozen startup companies. This investor takes a…
Read MoreBeware of (some) Angel Group’s Due Diligence
Not all “due diligence” is created equal. There are hundreds of angel groups all across the country, and each one has a different flavor. Some are occasional “dinner clubs” fashioned after Shark Tank, where a couple startups pitch and investors might make an investment on the spot. Others are extraordinarily sophisticated in their screening, mentoring,…
Read MoreWhat Is Patent Infringement?
Patent infringement is when someone else uses your patented idea without permission. The strict, legal definition is when someone infringes or performs every limitation of at least one patent claim. This is found in 35 USC 271. Many inventors and entrepreneurs believe that having a patent means they are “protected.” Having a patent just means…
Read MoreFinancing patents for pre-angel or pre-seed startups
Good patents only come from a good business BlueIron provides financing for patents – but only when the patent makes good business sense. When we finance patents, we do extensive due diligence to make sure the patents will have value before our investment. We have skin in the game. In this article, we talk about…
Read MoreIP Due Diligence Checklist
Due diligence is essential for any business deal, and IP due diligence[1] 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…
Read MoreHow Much Does A Patent Cost?
Updated 23 July 2023 The average cost of a utility patent in the US is over $50,000. This is just the cost to file a utility patent application and the patent examination process. It does not cover the cost of enforcing your patent, which can be in the millions. All patent owners should have patent…
Read MoreHow Patent Licensing Works
On a small scale, a patent owner might worry about creating patents that can be asserted against competitors. The plan is to stop a competitor from copying. These thoughts are often where a startup stops the analysis. This concept is the essence of a good patent. But what happens when you get the patent? How…
Read MoreHow to Find a Realistic Patent Value
Updated 15 Aug 2025. The biggest factor to determine a patent’s value: revenue. A realistic patent valuation[1][2] 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…
Read MoreOnly Gullible Angel Investors fall for Provisional Patents
Provisional patent[1] applications are the worst things for angel investors. What is a provisional patent application? A provisional patent application, sometimes called a “provisional” or “PPA,” is the single worst thing a startup can do to “protect” themselves. And angel investors have been led to believe that this is a good strategy. I assure you,…
Read MoreProvisional Patent Applications are Always Wrong for Your Business
Updated 22 Dec 2021 Provisional patent[1] applications are misunderstood by many inventors, investors, and even patent attorneys. There is a notion that somehow a provisional patent application is good for inventors and startup companies. Let me be clear: there is nothing worse than a provisional patent application from a business standpoint. There is no reason…
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