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Source: Knowledgebase at www.astecs.org

Monetizing Your PatentsTen Techniques for Turning Patents into Profits

Source: Knowledgebase at www.astecs.orgWhy Monetization is Not EasyEstablishing channels to sell products is expensive & takes years.Selling licenses requires a sales team & effort.Infringement is often difficult to detect.Infringers are often difficult to find.Enforcing patents requires armies of lawyers & legal fees.

Source: Knowledgebase at www.astecs.org3Top Ten TechniquesSale of ProductsSale of PatentsPatent Sale with License BackSelling Patent with Revenue ShareSelling Enforcement Rights Only"Friendly" Licensing"Threatening" Licensing"Semi-Threatening" LicensingVC Investment with Strings IP-Backed Loans

Source: Knowledgebase at www.astecs.org.4Monetization: Selling Products"Our products are unique as they are backed by our patents".AdvantagesProduct differentiation.DisadvantagesRestricted by your sales channels.Whats InvolvedEstablish complete product sales operation.Good CandidatesLarge corp. with sales channels

Source: Knowledgebase at www.astecs.org6Sale of Patents"We'll buy your patents outright".AdvantagesRelatively quick & high returns.DisadvantagesGive up future potential.Whats InvolvedListing & marketing.Good CandidatesPatent holders lacking products or sales channels.

Source: Knowledgebase at www.astecs.org7What Patents Sell ForPatent invalidated or expiredKnown infringers$0$10k-30k$30k-100kPatentAcquisition Value in US$$100k-$0.5m$0.5-1m$1m+ABCDENot litigated No licensees No broad claimsNot litigated Broad claims Large marketSeveral competing buyersFortune 500 infringersFLitigated & wonLitigated & wonPending (unissued) patent applications: value is triggered when patent is approved. Value is contingent on approval.

Industry-standard

Source: Knowledgebase at www.astecs.org8Patent Sale with License Back"We'll buy your patents and give you a license to continue selling your products that use them". AdvantagesCash now without giving up product line.DisadvantagesMay enable competitors.Whats InvolvedListing & marketing patent.Good CandidatesProduct companies without army of lawyers.

Source: Knowledgebase at www.astecs.org9Selling Patent with Revenue Share"We'll buy your patents and share any subsequent licensing revenue with you".AdvantagesCash today & cash tomorrow.DisadvantagesLower up-front payment.Can be complicated.Whats InvolvedSale with revenue sharing agreement.Good CandidatesOperating companies divesting of infringed patents.

Source: Knowledgebase at www.astecs.org10Selling Enforcement Rights Only"We'll enforce the patents for you. We pay the costs and split the proceeds with you".AdvantagesRevenue without selling.DisadvantagesMay be joined in infringement suits.Whats InvolvedExclusive license with right to enforce, right to join & indemnification.Good CandidatesResearch labs & universities.

Source: Knowledgebase at www.astecs.org11"Friendly" Licensing"Would you like to license our patents?AdvantagesReputation as being nice.DisadvantagesIneffective.May trigger declaratory judgment suits.Whats InvolvedSearching for licensees.Often exclusive rights sold.Good CandidatesCorporate strategic licensing groups. Academic OTLs.

Source: Knowledgebase at www.astecs.org12"Threatening" Licensing"If you don't license we'll sue you for infringement!"AdvantagesGrabs attention.Can be very effective.DisadvantagesLed by lawyers. Adversarial.Costly. Whats InvolvedFinding infringers. Filing lawsuits. Negotiating.Good CandidatesCorporations with huge legal teams.Those with little to lose.

Source: Knowledgebase at www.astecs.org13"Semi Threatening" Licensing"Would you like to license our patents? We do plan to enforce them.AdvantagesCan be effective.DisadvantagesCan confuse the licensee.Can trigger declaratory judgment suits.Whats InvolvedIdentifying infringers & carefully approaching them.Good CandidatesPatent holder with legal resources to pose threat.

Source: Knowledgebase at www.astecs.org14VC Investment with Strings"We'll invest in your company if we can partner with you to enforce your patents".AdvantagesPreferential investment terms (to VC).DisadvantagesMay upset your competitors.Whats InvolvedFinding investor, negotiating terms.Good CandidatesStartups with infringed patents.

Source: Knowledgebase at www.astecs.org15IP Backed Loans"We can use your patents as collateral for a loan/credit line".AdvantagesSource of debt-capital.DisadvantagesEncumbers patents.Whats InvolvedFind lender. Valuation. Loan with security.Good CandidatesCorporations with good credit rating.Not for small companies.

Source: Knowledgebase at www.astecs.org16Monetizing Your PatentsTen Techniques for Turning Patents into Profits

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Source: Knowledgebase at www.astecs.org17