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Can a creative producer turn a simple video game interface into a major patent exit? On a recent episode of The Exit, Steve McGarry sat down with Victor Varnado, CEO of Supreme Robot, to discuss the transition from entertainment producer to tech IP dealmaker.
From navigating SEC-regulated acquisitions to building “hybrid newsletters,” Victor shares the blueprint for owning your audience and your innovations.
1. The Real Secret to Intellectual Property (IP) Value
Many entrepreneurs struggle to value their ideas. Victor’s journey began when a neighbor, who was a patent lawyer, noticed the value in a disabled-accessible interface Victor had built for a game.
To identify if your IP is valuable, Victor suggests ignoring how much work you put into it. Instead, ask these two questions:
- Does it solve a massive problem?
- Is there anything else like it on the market?
2. Navigating the IP Exit Process
Victor’s patent exit took approximately seven months from the initial pitch to the final offer. The process involved handing over code for expert due diligence and navigating complex negotiations.
Key Lessons for Patent Sellers:
- Start with a Provisional Patent: This provides a one-year “runway” to lock in your idea while you seek buyers. It is much easier to obtain than a full patent and allows you to monetize the IP immediately.
- Use “Clawback” Clauses: One of Victor’s biggest mistakes was not including a clause to take back his property if the buyer failed to meet specific obligations.
- Leverage Warm Outreach: For mid-six-figure deals, cold emails rarely work. Use conventions or warm introductions to ensure you have the buyer’s full attention.
3. Beyond the Exit: The “Hybrid Newsletter” Model
Victor argues that newsletters are one of the most undervalued assets in tech today. He pioneered the “Hybrid Newsletter”—a system that connects an app or digital tool directly to an email list.
Why the Hybrid Model Wins:
- Lower Customer Acquisition Cost: Use an app or game (like Victor’s High Score Game Arcade) as a free “hook” to get users into your ecosystem.
- Automated Revenue: Modern newsletter platforms now have built-in ad networks similar to YouTube, allowing you to generate revenue every time you hit “send”.
- Audience Ownership: Unlike YouTube or social media, you own your email list and cannot be “cut off” by an algorithm change.
- Long-Tail Monetization: Even if a user buys a “lifetime deal” for an app, they remain a monetizable lead in your newsletter for years through sponsorships and other product offers.
4. Final Advice: Start Building Today
When asked what he would tell his younger self, Victor’s answer was simple: “Start building a newsletter immediately”. Whether you are a developer, a creator, or a producer, distribution is the ultimate “moat” in the age of AI.
About Victor Varnado
Victor Varnado is the CEO of Supreme Robot and the creator of tools like Magic Bookifier and High Score Game Arcade. You can learn more about his work at SupremeRobot.com.
