There is always something exciting about encountering an entrepreneur interested in building a technology product of interest to IP lawyers and their clients. Especially when that entrepreneur brings an outsider’s perspective to the task at hand. In that vein, I consider myself fortunate to have been introduced to Steven Hafif, creator of an improved patent marketplace and search engine, Cypris. That introduction came by way of a client and patent owner earlier this year, who was excited to share the fact that they had been invited to invest in a new patent-focused tech startup. After I had a chance to meet with Hafif in person, I, too, felt that there was great potential in what he was trying to build with Cypris. (In the interest of disclosure, while I have consulted with Cypris on an informational basis, I have no role with company and have not received any compensation from Cypris for that consulting.)
A few things stood out to me about Hafif and his approach. First, it was immediately clear to me that he and his tech team were serious about studying the existing offerings in terms of patent search (primarily the USPTO website and Google Patents) and online patent marketplaces — with the goal of improving on them. Second, it was exciting to see a younger entrepreneur with a data analytics background approach the patent ecosystem with fresh eyes, particularly with respect to learning about the factors that contribute to patent-based transactions. In that vein, I was impressed to hear that Hafif had very quickly made inroads into the university tech transfer community, with a real possibility (at that early point) that Cypris’ marketplace would be able to offer research university-sourced patents to interested licensees or acquirors. In my view, those types of patents are underrepresented in the patent transactions space, so if Cypris could bring that rare patent liquidity to the market it could very quickly differentiate favorably from other online patent marketplaces.
Due to the dedicated efforts of Hafif and his team, Cypris recently announced its launch. The site, full of interesting features for both those interested in patent transactions as well as those interested in more robust patent search functionality, is really worth a look. Impressively, Cypris also launched with over 100 patents available for sale or license, including listings by a number of prominent research universities — with the promise of more to come.
Overall, I think the IP community benefits when new products and services are created — with Cypris serving as a great example of what can be accomplished in a relatively short time with the right mix of funding, tech expertise, and market research. I am glad, therefore, to present a written interview with Cypris’ founder, who approached the IP space as an outsider but has already built a tool of value for our community. As usual, I have added some brief commentary to the answers below and in next week’s installment, but have otherwise presented Steve’s answers as he provided them.
GK: What was the biggest lesson you took from your angel fundraising round?
SH: Over the course of my seed round, I pitched and interviewed over 70 individuals, most of whom were CEOs at large organizations within the manufacturing and technology sector, along with a few angel and venture investors. I was amazed to find that most have never heard of the patent marketplace model or even had any interactions within the patent exchange economy, even though almost all were patent owners or were actively trying to invest in IP. It was immediately clear that there was a failure to market these exchanges to the broader patent owner and buyer/licensee market, in addition to a lack of innovative startups and technologically advanced tools within the space. One of our objectives at Cypris is to expand the reach of the patent exchange market and build a tool to provide easy access to the patent marketplace for all.
I believe our platform meets the criteria of simple to use yet robust in utility. Cypris suits the needs of patent researchers interested in identifying recent patent grants along with presenting patent listings in a clear and concise manner. I believe a defining characteristic that truly sets Cypris apart is its design. Apart from Google Patents, I don’t believe there is a public search tool that presents patents and patent listings in the way that we do. Our search engine is seeing growing daily active users with extraordinarily long session times, which in effect is leading to more visibility on our listings. This combination of a patent search tool and marketplace creates natural and relevant visibility on patent listings, which is the ultimate goal.
GK: It is important for us to remember that not everyone interested in patents is an IP professional. While procuring competent IP counsel is always a must for anyone spending any money on patents, there is value in tools that allow anyone interested in patents to interact with them in a more robust way. At the same time, Hafif’s observations about the general lack of understanding in the business community — even among sophisticated potential investors — of how patent transactions can be facilitated by patent marketplaces should serve as a wake-up call to patent owners of all stripes. Hopefully, tools like Cypris and increased outreach by IP professionals to the business community will help matters.
Next week, I will conclude my interview with Steve Hafif, focusing on what Cypris is doing to shake up the patent marketplace model.
Please feel free to send comments or questions to me at gkroub@kskiplaw.com or via Twitter: @gkroub. Any topic suggestions or thoughts are most welcome.
Gaston Kroub lives in Brooklyn and is a founding partner of Kroub, Silbersher & Kolmykov PLLC, an intellectual property litigation boutique, and Markman Advisors LLC, a leading consultancy on patent issues for the investment community. Gaston’s practice focuses on intellectual property litigation and related counseling, with a strong focus on patent matters. You can reach him at gkroub@kskiplaw.com or follow him on Twitter: @gkroub.