How We Work

A granted patent is an asset. The process of getting a granted patent is costly, complex and onerous. In fact, the average cost of an Australian patent is anywhere from $30,000 to $50,000! This cost jumps when seeking protection in foreign jurisdictions. For example, according to our partner BlueIron IP, a US patent can cost between $60,000 and $80,000!

 

The question often overlooked by inventors and companies is "How will you pay for your patent?"

Patent costs are upfront, and do not consider the validity, commercial potential and value of the invention.

 

Rather than paying all your costs upfront for your patent application, we work with you to determine an appropriate IP Strategy, develop an IP Valuation and we work with you to review your IP Strategy, so that you can seek suitable finance terms from our partner iFin Capital Group to meet your desired goal by using the patent and any related IP as collateral.

 

IP Strategy and Valuation

Many start-ups and innovative SMEs use IP to introduce a new product or service into the market. The uncertainty of both the success or the product/service and its potential for revenue/cash flow generation in the future is substantial. Banks historically critically review the business, and do not conduct a rigorous approach to reviewing the scope of the patent - it's more of a checklist item during due diligence. Venture Capitalists seek to understand the value of the founder, and the potential size of the market, and while IP is important to them, again it's really only a checklist item during due diligence.

Being able to dive deeper into the technical characteristics of the patent, and develop a strategy for understanding and value the potential in the patent is where we work.

For your IP Strategy, we seek to understand the following:

  • What is your invention? 

  • Does your patent cover all embodiment's?

  • Are you disclosing unrelated trade secrets?

  • Who is your competition, and what does their patent portfolio cover?

  • What are the risks of infringement?

  • What are the risks to validity?

  • Do you have a plan for detectability / enforcement?

For your IP Valuation, we seek to understand the following:

  • How much will the patent cost?

  • Have you conducted a thorough prior art search?

  • Are you monitoring for new patent applications that have a similar scope to yours?

  • What is the cost of production of your product? 

  • What is the price per unit?

  • How many units do you plan to sell over the next 5 years?

  • What is the potential market share? What are the factors that could limit that share?

  • What is the potential impact of new competitors?

While there is no single industry standard for IP Valuation, there are several resources and methods that Patent Finance use to understand the true hidden value of your patent.

Now that we have a clearer understanding of the IP Strategy and IP Valuation, we help translate that future value into current cash flow, by providing you with suitable access to the right financing.

IP Financing, and Financing Goals

Understanding the value of your patent in financial terms allows you to seek financing to meet your goals. Those goals include:

  • Paying for the ongoing costs of your patent (or patent application), or funding your next patent. 

  • Freeing up capital for other business, production or operation activities and expenses.

  • Seeking additional funds for further development and refinement of your product.

  • Using the patent to pay for business expansion into new markets.

Contact Us

Book a meeting, schedule a phone call, reach our via email or get in contact via social media to start the discussions today.​