The Diligent Observer Podcast Episode 28: "Patents Won't Save a Bad Business" | Patent Expert Russ Krajec on IP-Backed Lending, Why Patents Create the Most Value at Year 15, and Common Angel Due Diligence Mistakes
Insights from a patent strategist who's authored 1,000+ patents and is revolutionizing IP finance through patent insurance and IP-backed lending at BlueIron
Today's episode explores three ideas that caught my attention:
- Provisionals are never a good idea - 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.
- Trade secrets are sometimes better kept a secret - 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 1,000 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.
Connect with Russ
Stuff We Reference
- Charlie Munger
- Jerome Lemelson
- Patenting the filament for the lightbulb by Thomas Edison
- Apple’s slide-to-unlock vs. Samsung
- U.S. Patent and Trademark Office (USPTO)
- Patent Cooperation Treaty (PCT)
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All opinions are personal and may not reflect the views of The Diligent Observer. Not investment advice.