Case Studies
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Frequently Asked Questions
- What services does IPBS provide?
We help patent holders successfully sell technology patents and patent applications, whether it is a large portfolio of hundreds of patents or a single issued patent. For patent holders who have made the decision to sell, we lead the sales process from beginning to end to get our clients a sale completed at the best possible price. We do this by following our
Five Step process for selling technology patents. To assist prospective sellers in making an informed decision, we discuss the impact of a sale to their business or development activities as well as the potential market value of the patents. For our clients interested in buying patents, we first assist in the development of a high-level strategy and overall understanding of the patent purchasing processes, if needed. We then identify and validate patents of interest, and/or negotiate with the current patent holders. - What kinds of technology patents have value?
Typically, all technology patents have some market value because there is, in general, a great demand for technology patents today. The value is based on a number of factors including the breadth of the claims, how widely the patent is being used today or potential in the future, the ability to enforce the patent, and amount of impacted revenue. There are also a number of factors that can decrease value including encumbrances (licenses or liens), prior art, or a problem with the prosecution history. An understanding of these factors from a legal, technical, and business point of view will help clarify actual market value. - Does a patent for a technology that failed in the marketplace still have value?
It is important to understand that technology and patents are two very different things. Technology is an advance that enables a better, faster, cheaper way of doing something. A patent is a government granted monopoly for an invention. Therefore, the correlation between the value of a technological advancement and the patents that are derived from that advancement many times will be low. Most technology patents have some value and while some technology patents are relevant today and accordingly quite valuable, companies are willing to acquire patents in which the underlying technology has not yet been adopted as part of an overall strategy to diversify their patent portfolios. - I have already received an offer for a technology patent…can IPBS help?
Yes. Many of our clients have either been approached with an interest to buy their patent(s) or have actually been provided an offer. In these instances, we can help the patent owner understand the value of the patent(s) as well as the business sense behind the transaction. In addition, we negotiate on behalf of our client to get the best price possible and avoid pitfalls common when selling a complicated asset such as patents, market the patent to a broader set of potential buyers while not sacrificing the relationship with the interested party, and provide any additional legal, technical, or business resources necessary to complete a successful transactions. We have a proven track record of getting patent owners a significantly higher price than originally offered by providing technical, legal, patent, or business analysis which helps justify a higher price by clarifying value as well as reducing risk to the interested buyers. - How long does the typical patent sale transaction take to complete?
A patent sale can take as little as one month or up to a year to complete. The average time is typically 3 months from start to an executed agreement between the buyer and seller. Factors that impact the time it takes to complete a transaction include the number of patents being sold, the market value, any title or encumbrance issues, the amount of time invested in developing a marketing package, the review and approval processes of interested buyers, and the experience of the parties involved in the transaction. A good patent broker assists both the seller by leading the sale activity as well as the prospective buyers by providing all the necessary information and insight needed to complete their due diligence and obtain approvals to buy. - What are the costs involved in selling patents?
The primary cost is the development of the marketing and due diligence package that is used as the basis of the sale. The greater level of detail a seller can provide about the background and potential encumbrances on a patent, the extent the claims of the patent are being used in current and future products, the amount of revenue derived from these products, and other useful information, the better the chance of completing a sale and for a more favorable price. Other costs will include fees associated with the review and transfer of patent files, drafting the patent sale agreement, and broker’s fees. Typically, IPotential will fund all aspects of the sales and marketing activity and the seller pays their own attorney fees. Brokers are typically paid on a retainer plus contingency fee or contingency fee only model. IPotential will work under a compensation model that makes the most sense to the seller, based on their situation.
Contact Us
To discuss your patent sale or acquisition needs or for any other questions you may have, please call 650.572.9500 or e-mail: inquiry@ipotential.com
