How is the value of my IP determined for a loan?
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…
Read MoreWhat types of IP can be used for IP-backed loans?
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…
Read MoreMy patents are being infringed. How does that affect a patent-backed loan?
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…
Read MoreCan I purchase BlueIron’s insurance through my insurance agent?
BlueIron is a licensed insurance agent, and acts as an insurance wholesaler for many brokers and agents. Please have your insurance agent contact us. BlueIron does not provide any other insurance other than Intellectual Property related insurance.
Read MoreDoes the insurance company want to take my 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…
Read MoreCan I raise money when I finance my patents?
Yes! Our due diligence reports are highly respected by investors. Our patent financing due diligence process not only evaluates patentability, but also enforceability, the economic advantage of the invention, its value to the startup’s market, as well as its value to competitors. Solid business value is REQUIRED before BlueIron can finance the invention, and BlueIron’s…
Read MoreCan I buyout my patents if they are financed?
Yes. The buyout cost for a patent is set up front and will not change. The buyout is NOT a percentage of patent value, revenue, or any other measure. We do not take warrants, “success fees,” or any type of carry. Our job is to build Investment Grade Patents for you, not become a tax…
Read MoreIs it better to own my patents rather than lease them?
Financially, a startup’s cost of capital is extremely high – especially at the beginning – so every dollar needs to be spent wisely. Leasing or renting assets is much more capital efficient. Most startup companies lease office space and even lease furniture through a coworking space. They lease computer services through Amazon Web Services and…
Read MoreCan I enforce my patents while they are being financed?
Yes! Just like leasing a car, you have full CONTROL of the IP assets without having to pay the full price up front. Because you have an exclusive license, you – and only you – decide how to use the patent assets. You can enforce, license, sublicense, cross license, or sell your business assets. BlueIron…
Read MoreWhat is the legal structure of patent financing?
The legal structure is a convertible note, lease-back structure. The IP assets are held in a Special Purpose Vehicle (SPV), which is how virtually all of the Fortune 500 companies hold their IP. The SPV grants an exclusive license to the startup with a buyout option. The startup can exercise the buyout option at any…
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