Smart companies are always looking for ways to improve their relative position in the industry. One clever approach is to acquire strategic patents ahead of time before they could jeopardize a new product launch, or which may have significant strategic value as a bargaining chip against a competitor to help deter or resolve a pending or upcoming litigation. In some cases, they are simply an interesting source of licensing revenues that has remained untapped.
Unfortunately, once a company raises its hand to acquire certain assets, the owner will quickly figure out the motivations behind that interest and the acquisition price may soon skyrocket. In addition, most companies have no relevant expertise in buying patents and they are at risk to making some “rookie” mistakes. Therefore, when acquiring patents, confidentiality and professional representation are generally the buyer’s best tools.
To that end, we are often retained to help companies, small and large, identify and/or assist in the purchase of patent portfolios. With our team of industry and technical experts, we are able to mine huge patent databases for those diamonds in the rough that may have significant value, often unbeknownst to the current owner. Before we even reach out to the owner, we review each asset with a fine-tooth comb, factoring in the likelihood of those patents being encumbered by existing licenses, their capacity to withstand invalidity challenges, the strength of the infringement that may be occurring, etc. And we provide our clients with a reasonable pricing guidance that we work very hard to come under.
In other cases, our clients already know which assets they are interested in and we simply represent them anonymously to approach patent owners and negotiate the sale. If our clients want to keep things undercover through the transaction, we can set up a shell company that will buy the assets for them and they can then acquire the company itself or buy the assets from it.
Our compensation model for those projects is generally a reasonable pre-agreed flat fee (or hourly rate), plus a small success percentage.
For more information, Contact Us.