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When To Sell: 3 Patent Monetization Strategies For The Savvy Investor

When To Sell: 3 Patent Monetization Strategies For The Savvy Investor

 

ROIAs a savvy investor, you understand that simply owning intellectual property is not going to make you a dime. When it comes to patent monetization and profiting from your intellectual property, you have three choices:

• Litigate to protect your IP
• License the usage rights
• Sell the patents

Selling patents ensures a quick payoff for your technology. But, how do you know when the time is ripe to generate substantial profits from selling patents in your IP portfolio?

1. Sell If … The Technology Is Not Core To Your Business

Conduct a portfolio assessment and determine if you have any number of patents that are redundant or not essential to your overall business goals. If you are holding intellectual property that is not core to your business, but may be valuable to others, it is wise to sell those non-essential assets.

Some firms may be willing to pay top dollar for the technology. This way, you shed the costly endeavor associated with starting up a business based on a new product.

2. Sell If … The Technology’s Life Cycle Is Waning

Patents have a life span. As a technology’s life cycle is nearing the end of its relevancy, the value of a patent starts dwindling in the last five or so years of its life. Selling before a patent gets to this point is often wise.

As with any investment, you need to know the marketplace extraordinarily well. With in-depth knowledge of the market and some foresight into the future landscape of technology, you are able to conduct a patent assessment and successfully determine a patent’s remaining relevancy.

Patent selling is effective once you know that a piece of technology in your IP portfolio is fading in relevancy. However, depending on where your intellectual property is at in its life cycle, patent monetization may be better achieved by marketing the technology to other investors who are willing to bring the new product to consumers.

3. Sell If … You Do Not Want To Endure Costly Patent Litigation

After conducting a patent assessment, you may come to understand you have patent infringers on certain key technologies in your IP portfolio. In this scenario, you either have to enter patent litigation or pursue patent selling.

If you feel you don’t have the tolerance for risk or funds associated with prolonged patent litigation, patent selling is a very viable option. Non-practicing entities (NPEs) and other companies welcome the opportunity to acquire intellectual property for little else than to sue. Patent trolls are a contentious topic, but they are an option for patent monetization.

Although you may be tempted to sell patents quickly, effective patent selling begins and ends with a strong IP strategy. Any successful patent monetization effort requires a lot of analysis and research to find the right buyer so you reap the most reward.

Ready to learn more about selling patents with the right strategy to achieve the most from your patent monetization efforts? Contact the patent monetization experts at TechPats today.


Patent Mining: 3 Tips To Successfully Navigate The Crowded IP Marketplace

Patent Mining: 3 Tips To Successfully Navigate The Crowded IP Marketplace

 

navigate crowded marketplaceDo you want to make marked improvements to your company’s bottom line while also maximizing shareholder value? Patent mining, coupled with methods for extracting value from your IP portfolio, is capable of producing very positive results.

Fifteen years ago, corporate income from patent licensing in the U.S. was at $15 billion. Today, the sum of U.S.corporate income that results from patent licensing exceeds $100 billion.

An effective patent mining program involves searching for valuable opportunities for your intellectual property, such as:

  • New applications of technology
  • New markets for the technology
  • Extensions of the technology
  • Patent infringement candidates
  • Hot technology or divisions for joint ventures

Portfolio assessment and patent mining is a proven process for uncovering the hidden gems within your IP portfolio. However, you need to avoid the pitfalls when attempting to successfully navigate the crowded patent mining marketplace.

The following three tips help to ensure you take the most solid path for patent mining that results in profitability:

1. Know The Processes Of Patent Mining

Patent mining may be done manually or automatically – both process have their shortcomings.

Automated tools are not a guaranteed strategy for patent mining, as there is no way to ensure that no stone is left unturned. These tools often miss applications of a technology across other industries. Manual patent mining is a very deliberate, thoughtful process, but it takes a long time, and is therefore also an expensive process.

The most beneficial patent mining process for uncovering your intellectual property gems is to partner with a firm that has a proven method of iteratively mining IP portfolios.

2. Understand That You Get What You Pay For

The CFO of your firm might find cost-containing appeal in cheap offshore patent mining services. However, offshoring your IP services comes with many issues:

Does the offshore organization follow processes to maintain confidentiality and have a sufficient amount of insurance coverage? Are they current with U.S. case law? This list of questions concerning the practices of offshore patent mining goes on and on…

The point is, with offshore patent mining, you receive no guarantee that those miners have anywhere close to decades of industry experience or comprehensive knowledge of a technological space.

3. Look For A Firm With Balanced Patent Mining Experience

It is important to ensure the firm you partner with for patent mining and portfolio assessment employs talented people with years of experience.

A great question to ask any intellectual property consulting firm is if their talent is in-house or through contractors. If the consulting firm employs an endless army of patent mining contractors, those contractors may work to a different set of standards from your own.

The potential to mine gold from your IP portfolio is great. But, you must partner with the right intellectual property consulting firm: one that approaches your portfolio assessment and patent mining with hard-won expertise.

A proven track record, along with a comprehensive approach to patent mining, ensures you are going to extract the most income for your company in the most efficient manner.

Ready to learn more about a capable intellectual property consulting firm that puts into practice the best methods for patent mining? Contact the patent mining experts at TechPats today.