What is the legal structure of patent financing?

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Source: FAQ (MPEP-Based) BlueIron Update: 2024-09-09 5 Related FAQs This page is an FAQ based on guidance from the Manual of Patent Examining Procedure. It is provided as guidance, with links to the ground truth sources. This is information only: it is not legal advice. n 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. nnnn The SPV grants an exclusive license to the startup with a buyout option. The startup can exercise the buyout option at any time. nnnn A buyout option is always available and always at a fixed price. There is no way BlueIron can “pad the bills” or raise the buyout price because everything is a fixed price. nnnn Sometimes, BlueIron has held patents for 3, 6, or 12 months and the company exercises their buyout option. In other cases, the startup has a high cost of capital and it makes sense for them to pay over time. n Other Related FAQs 5 FAQs Collapse What risk is BlueIron taking when financing a patent? How long does it take to get a patent? Who controls my patents when they are financed? Can I raise money when I finance my patents? Can I buyout my patents if they are financed?