Capital Can Transform Invention Rights

Why do many businesses prefer lawsuits over licensing deals — and what does IP capital mean for innovation?

Phil Hartstein, co-founder of Soryn IP Capital and former CEO of Finjan Holdings, shares insights from orchestrating almost $500 million in licensing deals. He explains why patent licensing has shifted from corporate boardrooms to courtrooms, and discusses the economics of patent enforcement, the role of litigation finance in supporting legitimate innovators, and how AI is transforming IP strategy.

|Phil reveals what makes patents valuable, why most portfolios contain only single-digit percentages of enforceable assets, and his perspective on patent monetization as a strategic responsibility rather than defensive last resort.

Key Takeaways:
-Most patent portfolios derive value from only single-digit percentages of total assets
-Corporate defendants now manage 50-100 active patent lawsuits simultaneously
-Patent litigation costs range from $2-20+ million and take 3-5+ years to resolve
-Licensing discussions once happened in boardrooms over 9-12 month periods
-Modern product cycles compress multiple technology clusters into shorter timeframes
-IP capital helps innovators compete against well-funded corporate defendants
-AI tools like ChatGPT are transforming patent analysis and claim construction workflows
-Patent monetization strengthens both business balance sheets and the broader innovation ecosystem
-The U.S. patent system's constitutional foundation drives American technology development
-Strategic patent enforcement requires demonstrating credibility, capability, and resources

About the Guest:
Phil Hartstein is a technology investor, inventor, and intellectual property strategist. He co-founded Soryn IP Capital and previously served as CEO of Finjan Holdings, a public company now owned by Fortress. At Finjen, he oversaw licensing and enforcement of pioneering cybersecurity patents, orchestrating more than $300 million in licensing deals. Phil holds more than two dozen pending and issued patents and has been twice recognized as a top 40 IP dealmaker.

00:00 - Introduction to Phil Hartstein
01:44 - Why companies prefer lawsuits to licenses
03:03 - Boardroom licensing era vs today
04:16 - Soryn IP Capital's role in leveling field
06:35 - Corporate litigation dockets explained
08:47 - Patent lawsuit economics and timelines
10:23 - Funding plaintiffs vs bad actors debate
13:10 - Making capital available for innovators
15:36 - Patent quality and portfolio value
18:07 - Supreme Court's Unwired Planet decision
20:16 - The Alice decision's ongoing impact
23:40 - Patent valuation and market adoption
26:25 - PTAB's role in patent examination
29:14 - Working with litigation finance
31:40 - Evaluating patent portfolio strength
34:22 - International IP enforcement landscape
37:08 - Germany's patent system advantages
39:30 - AI's impact on patent prosecution
42:42 - Racing vintage cars as analog escape
44:40 - Patent monetization as strategic duty