Before Shark Tank
Scott Jordan is a non-practicing attorney who built himself a business empire. Jordan’s empire, named SCOTTeVEST, has an innovative line of clothing that put it on the map. Technology Enabled Clothing, or TEC, is a line of internal pockets that were specifically designed to protect a person’s phone or other portable electronic device. This garment is capable of being incorporated into any vest or jacket and its purpose is to provide saver transport and even a faster trip through airport security.
As of right now, this patented technology is only used in Jordan’s own retail business, but what he really wants to do is license the patent to other famous outwear manufacturers. He is fairly confident in the fact that this new invention of his will be a hit, because his ScottEvests are already widely popular among the technology fanatics. However, he needs someone that has the right connections to help him get the licensing deal he has been lusting after. So he decides to take TEC to the Shark Tank, hoping to strike a between one of the widely famous businessmen and women.
During Shark Tank
Upon entering the Shark Tank, Jordan named his price of $500k in exchange for a 15% share in Technology Enhanced Clothing. Jordan then begins to explain to the Sharks how he is a “gadget guy”, meaning he loves technology and is always carrying it with him. Whether it be his cell phone, tablet, or digital camera, Jordan always has a lot of equipment to carry around with him. What makes that even more of a hassle is that he is also a person that travels a lot, which can become tiresome when you have so many things to carry. That is why he invented TEC, which has been carefully designed to house all of these different pieces of technology. The way that the vest was designed allows a person to carry almost anything within the pockets without having it look bulky or feeling unbalanced. In addition to that, some of the pockets are also made out of a fabric that allows you to access your touchscreen smart phone without even taking it out of your pocket. There is also a specific section for your earphones to go so the wire doesn’t tangle.
TEC is a patented design that Jordan has the intention of licensing to every outwear manufacturing company. He is more than confident that this will become a brand that is recognized worldwide because it is going to revolutionize the clothing industry. It is even his belief that TEC is going to be a billion dollar success.
Robert Herjavec is the first Shark to speak up because he was flipping through a magazine the other day and saw an ad for a similar product. Jordan then begins to explain to the Sharks that he created a retail business based off the premise of selling technology enhanced clothing. The reason he started that company was to prove the popularity of this particular type of clothing and has been running it for a handful of years now. However, now that he has the patent for his design, he wants an investment so that he can start to licenses it to other registered brand names. What Herjavec wants to know is how the sales look for these techy pieces of clothing at ScottEvest. Right now they have made around $5.1 million and are on track to net about $12 million by the end of the year.
However, with that being said, Jordan makes it very clear that he has no interest in selling a part of his retail business. What he wants is to license the intellectual property to other well known brands of clothing because he is looking at the billion dollar picture. This rattles Kevin O’Leary’s cage. He accuses Jordan of being greedy for not packaging the patent with a stake in the business, but Jordan claims that he is only being a business man like O’Leary himself.
Daymond John comments on the fact that he has seen other pieces of clothing that have a similar concept in regards to the headphone feature incorporated into TEC. What he wants to know is what exactly makes TEC so different that it was able to receive a patent. Jordan then reveals that those brands infringed on his patent which led to a legal battle that he ended up winning. So far he has settled with 11 large brands such as North Face, Ralph Lauren, and Under Armour. From these settlements, Jordan is receiving a royalty stream as compensation.
This knowledge lights a fire under O’Leary who tells Jordan that he needs him because O’Leary knows how to sue people. However, he isn’t happy with the fact that he is only being given a little taste of the company. He wants a bigger piece of the pie, but Jordan insists that he doesn’t need any additional help with his retail company. Mark Cuban moves discussion in a different direction though, asking what exactly Jordan has a patent on. It is then explained to him that it’s the design that allows wires to go through the clothing that is patented. With this in mind, Cuban flips his lid and goes of on a tangent about how stupid it is that people can get patents for something so silly and then sue over it. O’Leary begs to differ, thinking that it’s brilliant.
Chaos then erupts within the Shark Tank because Cuban and John are fired up now that they have the knowledge that Jordan was formerly a lawyer. They both think it’s unjust, but Herjavec steps in to commend him for his work. He says that it was smart of him to have such a good idea, patent it, and then defend it when it was infringed upon. But Herjavec doesn’t want to go in on just the patent, he wants in on the ScottEvest company because he believes that it could grow into the billion dollar picture. So he puts an offer on the table. Herjavec offers Jordan $500k in exchange for 15% of the company, not just the patent. This offer clearly offends Jordan though, because he asks Herjavec if he is insane for offering a half a million dollars on a business that is making 5 million.
Jordan explains that all he wants is their business connections and their money. After making this comment, Barbara Corcoran finally speaks up to say that he must be an absolute pain to work with. She doesn’t believe that he is a person she herself could work with, which is why she decides to drop out. Cuban also decides not to invest because he doesn’t think that this brand is going to build because the next big thing in the world of technology is wireless devices. He argues that he can make a brand that is similar to TEC, but have it be based off of bluetooth instead of a vest geared toward wire applications.
All of the Sharks seem to be put off by the rude attitude that Jordan is presenting, but O’Leary can sympathize. He does think that Cuban has a point in regards to wireless technology, but he still believes that Jordan is doing a good job in growing his current brand. So what he decides to do is to make the same offer that Herjavec made, allowing Jordan to pick between the two of them.
Jordan decides to step away from the tank for a minute to call a member of his advisory board, who also happens to be the co-founder of Apple. While on the phone, he explains the offers and asks what he thinks he should do. When he returns to the Shark Tank, he tells them that he was advised not to take the deal because it’s too low an offer for such an established business. After that, things get heated again between Jordan and the Sharks because of his blatant disrespect. In the end, Jordan points to both O’Leary and Herjavec to tell them that they are out because he doesn’t need them. John is outraged that he just wasted all of their time, but he still walks away without even uttering an apology.
Technology Enabled Clothing Now in 2017 – After Shark Tank Update
After appearing on Shark Tank, even more drama ensued between Scott Jordan and Mark Cuban. During a very public battle on Twitter, Cuban made it very clear that he believed Jordan was a “patent troll” and that supported a brand called Aye Gear that was a knockoff of the ScottEvest. The Twitter hash between the two went on for a few days, but maybe it was good for the two of them to get all that aggression out of their system.
Despite receiving a lot of hate from the Sharks, ScottEvest continues to do very well. In 2013 they made around $20 million in sales and began the process of suing the aforementioned Aye Gear for infringement. Then Jordan later announced that a 2.0 version of the TEC jacket was going to be released. This new version includes detachable sleeves, embedded speakers in the collar, and even solar panels on the shoulders which allows for environmentally friendly charging on the go.
On the ScottEvest website (http://www.scottevest.com/) you can view all of the different styles of jackets that they have to offer. There are quite a few options for both men and women. In addition to the jackets, ScottEvest is now selling hats, pants, and various other items that have been technologically enhanced. Clearly the business is still booming, even though the Sharks were not impressed with Jordan at all.