Tag Archives: IP finance

BofA, JPMChase & Morgan Stanley are top banks for patent loans

Bank of America, JP Morgan Chase and Morgan Stanley are the currently leaders in patent-based lending, according to a recent update of a 2015 study.

Relecura, Inc., a California patent research and analysis company, reports that Bank of American had 60,093 transactions for a total market share of 16.87%. JP Morgan Chase had 45,304 transactions for a 12.72% market share. Morgan Stanley, which was number 11 on the 2015 list, came in at third in 2017 with 24,244 loans and 6.80% of all transactions.

The total number of transactions between 2011 to 2016 were 947,907, consisting of 356,287 applications.

Long History

There is along history of IP-backed bank financing. Businesses of all sizes and types have used it to raise money using patents, copyrights and trademarks as collateral. Distressed businesses tend to use it the most, perhaps when other sources of capital dry up.

In 2015, the key companies securing loans using patents include General Motors, Avago (now Broadcom Limited), Alcatel Lucent and Kodak.

JP Morgan Chase, Bank of America, Citigroup, Wells Fargo, Wilmington Trust, and Deutsche Bank were the top banks doing IP backed financing deals. GE Capital also was an active lender.

Several governments have been major IP lenders, including the China Development Bank, which in 2014 pledged the equivalent of $1.3 billion USD agains a portfolio of 134 patent and 34 trademarks. Korea and Singapore have also been active IP lenders.

Most Active Borrowers

Key sectors doing the borrowing include software and hardware companies. Other active sectors employing IP backed financing include digital data processing, digital communication, IT methods for management, telecommunication, semiconductors, and television & video transmission.

An excellent infographic summary of bank lending on patents can be found, here.

For the full May 2015 presentation, go here.

Image source: Relecura, Inc.

Public IP Company Challenges will be Heard at IP Business Congress

Interest in public IP licensing companies or PIPCOs continues to build; so do supporters and skeptics.

With some 30 trading on various exchanges throughout the world, “PIPCO Challenges” will be among the 16 sessions featured at the 2014 IP Business Congress in Amsterdam, June 22-24.

IP CloseUp editor, Bruce Berman, (yes, that’s me) will moderate the session, which promises to be a lively one.

Room 1: “PIPCO challenges” – June 23, 2:05 – 3:35

The number of publicly quoted IP companies (PIPCOs) has grown significantly over the last few years. They employ a number of different models and have enjoyed mixed success.

  • Why go public in the first place?
  • Different PIPCO business models
  • Consolidation or expansion?

Moderator:
Bruce Berman, CEO, Brody Berman Associates

imgres-1Speakers:
– David Hoff, IP Investor
– Peter Hardigan, COO, Document Security Systems (DSS)
– Joe Beyers, Chairman and CEO, Inventergy (INVN)
– Phil Hartstein, President, Finjan Holdings (FNJN)

Other sessions at this year’s IPBC include: Cooperative Patent Purchasing, Building a World-Class Corporate IP Function, NPEs Under Attack, Deal Dynamics, Beyond Monetization, and The Next Battle Grounds.

More than 600 are expected to attend from the U.S., Europe and Asia, with more than 80 speakers. The IP Hall of Fame also will induct four new members at a gala reception on June 23 held at the Krasnapolsky Hotel.

The full program and speakers’ list can be found here.

Image source: ipbusinesscongress.com


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