Patent valuation is a difficult subject because there are many different people using many different techniques to come up with a ‘value.’ In general, the only meaningful metric of patent value is revenue. Either you are selling a patented product, or an infringer is selling an infringing product. The value of the patent is determined…

We typically consider patents as the primary asset in an IP-backed loan, although we also consider trade secrets and company data as valuable assets to loan against. A software company’s code base may also be collateralized, but typically as a secondary asset. Trademarks occasionally can be considered, but they are on a case-by-case basis. A…

Infringed patents can help (or hurt) your chances for a patent-backed loan, depending on the situation. In some cases, we put together an enforcement plan alongside a loan, where the loan gets paid off with the proceeds from the enforcement. In those cases, the enforcement and loan work hand-in-hand. In general, infringement of your patents…

Our goal is *not* to get your patents. Our goal is to help you make the patents more valuable. A patent loan will give you capital, and we want to see that the loan proceeds are being used to make the patents more valuable. Typically, we look for opportunities where the loan goes to marketing…

The effective interest rate for a patent loan will be in the neighborhood of 9-12%. The patent loan insurance product has a premium that is paid out of the loan proceeds, as well as due diligence fees and insurance premiums for the required enforcement and defense insurance. When you include interest paid back to a…

No. The patent loan program does not normally require a personal guarantee. We provide an insurance product that will guarantee a lender in case of a default. However, a lender may still have the final say as to whether or not to require a personal guarantee.

We prefer to provide loans to revenue generating companies, but we will consider pre-revenue companies in some cases. For pre-revenue companies, our patent financing option will build out your portfolio quickly so that it will be ready once your company starts generating revenue. The loan program is a loan, after all, and we will evaluate…

A patent loan will come with several other components, including insurance for patent enforcement and patent defense. Because a patent loan is specifically designed to help you expand your business, we want you to focus on generating revenue, not litigation. Therefore, we give you at least $2,000,000 in patent enforcement insurance and patent defense insurance.…

The patent loan program requires several items about your patents and your business plan.  This is not a complete list. 100% ownership of your patents. Your patents must be completely unencumbered and must be owned by the operating company.  Some investors will attach liens to intellectual property, which is a non-starter.  In many cases, the…

We provide an insurance policy that will guarantee a lender (typically a bank) using the patents as collateral. The Collateral Protection Insurance product is similar to mortgage insurance, where the bank has protection if there is a default on the loan. The CPI product requires investment-grade patents and a solid business plan.  The patents must…