Today's episode explores three ideas that caught my attention:
The provisional paradox - Founders who file provisional patents are explicitly saying they don't value their IP enough to spend an extra $600.
Insurance vs litigation reality - Patent lawsuits are 10x more common than D&O claims, yet investors often push for D&O coverage while ignoring patent insurance.
The trade secret trap - Sometimes patents hurt by forcing public disclosure of processes better kept as trade secrets. Key example of why "more IP" isn't always better.
I explore these ideas and more with Russ Krajec, Founder of BlueIron.
Russ Krajec brings a refreshingly pragmatic view to intellectual property strategy, shaped by writing over 800 patents and pioneering IP-backed lending at BlueIron. As a "recovering patent attorney" and author of "Investing in Patents," he challenges conventional wisdom about startup IP strategy while providing practical frameworks for both founders and investors to evaluate patent decisions.
During our conversation, Russ shares:
The dangerous economics of contingency litigation - breaking down why cases need $50M+ potential returns.
Sector-specific IP strategies - contrasting approaches for medical devices vs software products.
A practical perspective on patent value focused on realized versus potential revenue protection.
What We Cover:
00:00 Introduction
01:56 Understanding Patents: Basics and Misconceptions
03:10 The Value of Patents in Business
05:24 Challenges and Pitfalls of Patents
08:14 Provisional vs. Non-Provisional Patents
11:07 IP Strategy for Startups
13:58 Evaluating Patent Strategies
17:22 Provisional Patent Applications: A Deep Dive
29:07 The Importance of Patent Insurance
33:32 Practical Advice for Angel Investors
Listen now on Spotify, Apple Podcasts, and YouTube.
Connect with Russ
LinkedIn: https://linkedin.com/in/krajec
Connect with Andrew
Newsletter: https://thediligentobserver.com
Website: https://pitchfact.com/
Stuff We Reference
Charlie Munger: https://www.forbes.com/profile/charles-munger/
Jerome Lemelson: https://invention.si.edu/about/who-we-are/jerome-lemelson
Patenting the filament for the lightbulb by Thomas Edison: https://www.archives.gov/milestone-documents/thomas-edisons-patent-application-for-the-light-bulb
BlueIron: https://blueironip.com/
Apple’s slide-to-unlock vs. Samsung: https://www.linkedin.com/pulse/what-everyone-should-know-apple-slide-to-unlock-patent-richard-beem/
U.S. Patent and Trademark Office (USPTO): https://www.uspto.gov/
Patent Cooperation Treaty (PCT): https://www.wipo.int/treaties/en/registration/pct/
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All opinions expressed are personal and may not reflect the views of the individual’s organization or of The Diligent Observer. Not investment advice.
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