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 time.
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.
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.