I'm joined by John Behles, Owner at Lexigent LLC and Founder & GP at PhiCAP Fund, as we explore the critical role of intellectual property strategy in medtech success, common IP pitfalls that destroy startup valuations, and how physician-led venture capital is reshaping healthcare investing.

In this episode, we dive deep into:

The IP Strategy Foundation
→ Why doing your own prior art research makes you a more sophisticated founder
→ The critical difference between landscape opinions, FTO studies, and patentability searches
→ How to create a comprehensive IP strategy before you ever file a patent

The Gold Standard IP Timeline
→ Why smart founders do FTO studies before product development even begins
→ The sliding scale approach: when simple DME products don't need comprehensive IP protection
→ How to avoid the "caveman approach" of filing patents without strategy

Patent vs. Trade Secret Strategy
→ When black box technologies should stay trade secret instead of being patented
→ How one cybersecurity company got a $50M valuation through trade secret strategy
→ Why software patents face court hostility and abstract rejections

International Patent Protection
→ The counterintuitive advantages of filing PCT first instead of US provisional
→ How to get your patent allowed in 4-6 months using Patent Prosecution Highway
→ Why Track One applications are often a waste of $2,000

Licensing Deal Negotiation Landmines
→ Why "net royalty" rates will destroy your economics (hint: $3 left from $1,000 revenue)
→ The power of floor pricing and volume-based escalators
→ How warranties and indemnification clauses can bankrupt startups

Patent Examiner Psychology
→ Why adversarial patent attorneys hurt your chances of getting patents allowed
→ The relationship-first approach that dramatically improves patent prosecution success
→ How to conduct interviews that actually move your case forward

The Physician-Led Venture Revolution
→ How PhiCAP Fund enables physicians to be their own private equity
→ Why private equity acquisition of medical practices is destroying healthcare
→ Creating two monetizable vehicles through IP holding company structures

Due Diligence Red Flags
→ The licensing assumption trap that kills deals before they start
→ Why patent portfolios can become net negatives in M&A situations
→ How Inter Partes Review turned patent ownership into a liability

Best Quotes:
"If your patent strategy is 'I want to go and enforce my patents against everybody in my space,' that is a dead loser."

"Most people don't realize that just because you have a license, you may not have the right to manufacture it. They may only want you to sell it."

"Patent attorneys are a notoriously odd crowd. Do they sweat when they get on the phone and talk to another human being? You really don't need that type of personality when dealing with the Patent Office."

"If I get assigned into a particular art unit in 3600, I'd rather just have my money back."

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Episode Timestamps:
0:00 - Introduction to John Behles and his journey from Boeing engineer to IP attorney
3:00 - The mythology around intellectual property and why founders get it wrong
7:00 - The gold standard IP timeline: landscape first, then patentability, then filing
12:00 - When to do FTO studies and how budget drives IP strategy decisions
17:00 - PhiCAP Fund's mission to enable physician-led healthcare investing
24:00 - Red flags in IP due diligence that kill startup valuations
28:00 - Licensing agreement negotiation: avoiding the "net royalty" trap
35:00 - International patent strategy: why PCT first beats US provisional
42:00 - Patent examiner psychology and the relationship-first prosecution approach
47:00 - How IP portfolios influence M&A valuations and VC deals
52:00 - Building comprehensive IP strategies that evolve with your company
56:00 - PhiCAP Fund opportunities and IP strategy consultation offerings