Tag Archives: patent monetization

Responsible Patent Licensing is focus of Wall Street event

Not all patent licensing businesses are alike.

“NPE 2016: The Business of Responsible Licensing,” scheduled for March 22 at the Convene conference in New York, will differentiate patent monetization companies by examining their business models, strategies and the managers who run them.

The conference will focus on the non-practicing entity (NPE) industry, including both public and private companies. In 2015, the NPE 2016 brought together leaders from the licensing company sector and the wider corporate IP and investment communities to discuss the challenges and opportunities of running a patent licensing business, especially in today’s challenging climate.

NPE 2016 is the only gathering that examines how NPEs operate and contribute to the innovation and the economy.

3J6A3349Moderator-led panel discussions with audience Q&A at the end of each will be featured. Sessions are designed to focus on the specifics of building and running successful NPE, as well as on the opportunities available to investors.

Beyond Monetization

This year’s sessions will consider licensing best practices, building and managing a patent portfolio, licensing dos and don’ts, litigating in Europe once the Unified Patent Court has been launched, licensing opportunities in new sectors and moving IP commercialization beyond monetization.

Last year’s attendees included:

• NPE executives
• In-house counsel and legal directors
• Private practice lawyers
• Licensing executives
• Patent brokers
• IP policy professionals
• Investment professionals

IP CloseUp readers who use the promo code IPCLOSEUP before February 19 are eligible for a $150 discount off of the full $895 registration.

For more information about NPE 2016 or to register, go here.

For he full program, go here.

 

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Image source: convene.com; iam.com

 

IP Dealmakers Forum will host 200+ patent monetization bigs in NY

The second annual IP Dealmakers Forum, December 7 – 8, will bring together leaders from the finance, legal and business communities to discuss the issues affecting patent licensing, sales and value, and to facilitate transactions.

New this year is a separate workshop for institutional investors that focuses on understanding IP as an asset class. This invitation-only, closed-door workshop will address the characteristics, market size and scope of patents as business assets, discuss practical investment issues, and examine the current investment universe. For additional information, go to here.

Luncheon Keynote

This year’s luncheon keynote is Edward Jung, co-founder and Chief Technology Officer of Intellectual Ventures, which holds more than 70,000 patents.  After leaving Microsoft where he was Chief Architect, Jung founded IV in 2002. As CTO, Jung sets strategic technology direction and new business models for the company. He holds more than 750 patents worldwide with has an additional 1,000 pending in the areas of biomedicine, computing, networking, energy, and material sciences.

The keynote topic is Driving Deals Through the Patent Storm”ip-dealmakers-logo-2015

Other speakers, at the New York event which will be held at the Apella event center overlooking the East River, include chief or senior executives from leading IP holders, both NPEs (non-practicing entities) and operating companies, institutional investors, financial institutions and PIPCOs (public IP licensing companies), including

France Brevets, Techquity, EverEdge IP, Finjan, Royal Philips, Gerchen Keller Capital, Fortress, IP Bridge, Northwater Capital, Wood Creek Capital, Allied Minds, WiLAN, American Express, nXn Partners, Bridgestone Americas, Swiss Alpha, Freescale Semiconductor, Ericsson and Marathon Patent Group.

For this year’s IPDF agenda and speakers, go here.

IP CloseUp readers can still save $200 on Forum registration by using promo code “IPCloseUp_Special”.  A special landing page has been created for IP CloseUp reader registration: http://www.ipdealmakersforum.com/ipcloseup/

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Actionable Insights 

“The program is dedicated to providing attendees with actionable insights from successful dealmakers,” says Wendy Chou, co-founder and producer of IP Dealmakers Forum. Session topics include:

  • Boom or Bust: The Public IP Market One Year Later
  • All About Patent Quality – How to Invest in Powerful Patents
  • New IP Businesses, Investing for Innovation & Growth
  • The Evolution of IP Litigation Funding & Insurance Markets
  • 2016 Presidential Election Perspectives on Patents
  • How IP Drives Corporate Reinvention, M&A and Investments

Last year’s inaugural event connected diverse intellectual property monetization experts with public and private market investors, and was attended by approximately 200 investors, IP executives, and advisors. Due to popular demand, expanded space will be provided in 2015 for private one-on-one meetings.

Changing Times

“These are changing times,” said Ashley Keller, co-founder of Gerchen Keller Capital, and a scheduled speaker at this year’s Forum. “As the market shifts, understanding the increased importance of due diligence expertise, the changing perceptions of risk and valuation, and the sources and expectations of those with investment capital, is a prerequisite for anyone who intends to succeed in this arena.”

Image source: IP Dealmakers Forum 

Video Interview: “Investor Pressure Helped to Secure Rockstar Deals”

Opportunities still exist to monetize patents for those willing to do their homework and adjust expectations, veteran patent licensing executive Bob Bramson, a WiLAN director, told IP CloseUp in an exclusive interview.

There is a common theme running through Rockstar’s recent $188M settlement with Cisco, its litigation against Asian handset makers, including Samsung, and sale of 4,000 patents to a group led by RPX for $900M: Patent holders with solid patents and realistic expectations can still find success.

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Despite impediments like IPRs, software-adverse decisions like CLS Bank v. Alice, and aggressive anti-NPE lobbying, significant patent agreements are stilling being transacted. The key to their success, says Bramson, who is responsible for more than 1,000 patent licenses and sales over a 40 year career, is quality and need.

“Licensing is about money,” says the patent attorney and strategist who was recorded in our offices in late December. “Surely, the sugar-plum visions of a few years ago need to be rethought, but that does not mean there aren’t good opportunities out there for those willing to conduct the necessary due diligence. Patent monetization is about risk and reward, and if after careful analysis the potential damages are still there, then you at least have the basis of discussion. The last thing a patent monetizer wants to do is win the battle but lose the war.

“Rumor has it that the Rockstar deal got done because of pressures exerted by some of their investors, notably Apple and Microsoft. There is a complex network of relationships and needs that fuel agreements between big parties, and direct revenue is frequently only a part of it.”

Patent Value in Perspective

While it’s difficult to calculate the precise current value of Rockstar (the company) based on its December 23rd patent sale to RPX, it is safe to say that it is a quarter to a half of the $4.5B that it’s investors, Apple, Microsoft, Sony, Ericsson, EMC and

Screen Shot 2014-12-29 at 10.41.00 AMBlackberry, paid in 2011. That said, $1B to $2B value on a single patent portfolio in the current anti-enforcement environment is nothing to sneeze at.

These investors also had complex needs and unique resources, the most important of which appeared to be keeping the patents out of Google’s hands. In Apple and Microsoft’s case, they also had huge amounts of cash on their balance sheet to deploy.

“I expect that there will be a clearing out of patent monetization businesses in the next couple of years,” continues Bramson, who founded and served as CEO of InterDigital Technology Corp. “But that’s not to say there aren’t still opportunities out there. Smartphones are one of many industries that rely on patents to compete. Sectors like medical technology and smart cars are heating up, and 3-D printing is likely to be huge.”

Watch the interview with Bob Bramson by clicking here.

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Image source: IP CloseUp 

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

Patent Stock Review Aims to Help Investors Compare IP Companies

News aggregator serves up a convenient summary of developments in the public patent space.

Patent Stock Review, a news and analysis website started earlier this year, provides easy to access background on a wide range of public companies involved in patent monetization, including Vringo, VirnetX and Acacia, as well as many that are less well-known.

Published by Institutional Analyst, Inc.(AIA), an investment research firm founded in 1998 by Roland Rick Perry an editor, part-time analyst and investor communications consultant. Mr. Perry is responsible for launching the Internet Stock Review, and also provides coverage for companies in a number of distinct industries including, Biotech, Internet, Entertainment, Restaurants, Special Situations and Private Equity.

Patent Stock Review is not rocket science, but it is very useful. Like many good ideas, it compels a reader to ask, “Now, why didn’t I think of that?”  With its evolving core Watch List, it is a well-timed addition to the public IP company (or PIPCO) information space. Particularly useful are the latest blog posts and most popular blog posts, which provide insight into what people are saying. 

“The Watch List, was created as a starting point for investors who are interested in companies involved in Patent Monetization via internally held patents, patent portfolios or through the acquisition of potentially valuable TurtlesSharkslpatents,” says Mr. Perry. “The list is not a buy list, but rather our universe of companies, whose technology, management, patent portfolio and/or recent market performance we currently find compelling.”

Mr. Perry started Institutional Analyst, the predecessor to IAI,  in 1995. Earlier in his career he was a broker at Drexel Burnham Lambert. While most of the companies he updates are not his clients, Mr. Perry says that to align IAI’s with shareholders, he “seeks to have 90% of clients’ retainer represented by an equity stake.”  The Patent Stock Review is a wholly owned subsidiary of a public relations firm Institutional Analyst Inc. (IAI), which provides or creates coverage for publicly traded companies.

Voyage of Discovery

“The impetus behind the Watch List issuance is to bring attention to the names and/or to the existence of these companies, particularly those with no coverage on Wall Street,” continues Mr. Perry, “and then to have the investors themselves, do the due diligence necessary to decide on their own if any of the companies warrant further study and/or investment.”

The website provides individual news feeds for each company on the Watch List, enabling investors to easily follow the entire group with a single visit. Through Thomson Financial, the Patent Stock Review’s hard copy research reports are made available to more than 22,000  institutional money management firms and over 950 research firms including brokers, investment banks and independent research firms.

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Look for expanded PIPCO 30 list in a future IP CloseUp.

Image source: patentstockanalyst.com

Innovative IP Models Generate Cash, Provide Alternatives

New Patent Businesses are Diverse and Well-Capitalized

A wider range of intelligent businesses are achieving higher returns on patents by extracting direct profits or providing defensive leverage.

The Patent Monetization Landscape below is a graphic illustration of these businesses developed by Brody Berman Associates in conjunction with the IP Investment Group at Coller Captial, a London-based private equity firm and one the of the leading independent patent holders.

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Size, Source and Strategy
The graph examines the relative size of these patent holders, whether they use their own patents or acquire them (or both), and how aggressive or defensive their strategy. A fuller exposition appears in The Intangible Investor, my column, running in the September IAM magazine.
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In this increasingly crowded and still evolving landscape few holders fit the same business mold, and only some can be considered outright “trolls.” The analysis shows that there are some entities that never sue, others that do so occasionally, and still others that are almost entirely about litigation.
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My hope is the Patent Monetization Landscape will serve as a springboard for further analysis of monetization strategies. (The graph is not drawn to exact scale and does not include life science companies or those whose primary income generation is through product sales.)
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As I explain in the upcoming Intangible Investor: “Operating companies are learning that they, too, can benefit from the [monetization] landscape as well as NPEs. Defraying costs associated with R&D, prosecution, PTO filings and litigation through a rights sale, purchase or partnership can provide valuable efficiencies and increase ROI, without necessarily increasing the risk of litigation or having to sue customers or vendors.”
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They also can help to secure the rights they need for sales and design freedom.
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A full-screen the Patent Monetization Landscape above can be achieved by clicking on the icon at the lower right of the slide.
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Image source: Brody Berman Associates



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