What is the effective interest rate of a patent loan?

In general, the effective interest rate for a patent loan will be in the neighborhood of 12-18%. 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 that is…

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Is the patent loan program available to pre-revenue companies?

We prefer to provide loans to revenue generating companies, but we will consider pre-revenue companies in some cases. The loan program is a loan, after all, and we will evaluate your company to see if we believe that you will be able to repay the loan. Taking out a loan is much different than selling…

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What is included in a patent loan?

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 require that you maintain at least $2,000,000 in patent enforcement insurance and patent…

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What are the requirements for a patent loan?

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…

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How does the patent loan program work?

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…

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Why can’t my patent attorney give me good advice?

Your patent attorney is probably a good, well-meaning person who wants to do the right thing, but they have some inherent problems that prevent them from giving you good advice. The conventional patent attorney has two duties to their clients: a fiduciary relationship and an agency relationship. In a fiduciary relationship, the attorney is required…

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What risk is BlueIron taking when financing a patent?

BlueIron is taking several risks when financing a patent. BlueIron is taking the risk that the patent will even issue. BlueIron is making an investment in researching the invention, writing the patent, and getting the patent through the patent office.  If BlueIron fails to get a patent, you can walk away from the deal at…

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When financing my patent, what is a buyout option?

With every BlueIron patent financing program, you always have a buyout option. The buyout option allows you to buyout BlueIron at a predetermined price at any time.  Some people exercise the buyout after three months, some at three years, and some people choose to keep paying. The buyout option is at a predefined price.  You…

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How long does it take to get a patent?

BlueIron can get a US patent as quickly as six months or less in some cases.  However, many times it takes 3 to 5 years. How do we do it? BlueIron’s founder, Russ Krajec, had the opportunity to join a startup company where we needed patent assets as fast as possible.  In that startup, he…

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