© 2019 PatentBridge LLC. All rights reserved. PatentBridge is not a law firm and does not provide legal services or advice.

Services


PatentBridge offers a turn-key patent brokerage and patent licensing service whereby we act as exclusive representative of the patent portfolio, taking all necessary action on behalf of our customer to broker and license its patents. This approach is exceptionally attractive to companies which do not have the ability, resources or inclination to represent their own patent portfolios, but instead prefer us to do so for them.

From analyzing the patents, reviewing the claims, developing the optimal brokering strategy, choosing potential candidates and infringers to approach, making the initial contact, negotiating the business deal from term sheet to execution of the final agreement, PatentBridge does it all.

PatentBridge offers the following services as part of its turn-key patent brokerage program.

The Most Important Aspect in Patent Brokering:  The Deal-Making

Patents do not sell or license themselves.  They are not treasures waiting to be discovered.  Patent brokering takes talent, experience, technical knowledge, salesmanship and a deep understanding of patents.

Patent brokering is also an art.  An art we have been practicing for years. With PatentBridge you have the benefit of years of experience in negotiating numerous patent brokering deals.

Patent Brokering Strategy + Patent Licensing

Patent brokering and patent licensing require an understanding of the underlying technology.  PatentBridge works with the customer's in-house scientists and engineers to assure up-to-date comprehension of the technology, the competitive market, and sale opportunities.  We confer with the customer's executives to develop a strategy that protects customer core technology yet offers patentees sufficient breadth in field of use to remain financially appealing.

PatentBridge reviews the claims of the patents to determine the proper industries and markets for commercialization.

PatentBridge proposes to our customer's the most advantageous business terms which we believe the market will accept.

PatentBridge identifies buyers and licensing candidates.

PatentBridge prepares the marketing materials and makes the presentations.

PatentBridge analyzes the appropriate deal options available.

PatentBridge advises on the commercial attractiveness of each option and the preferability of each identified candidate.

PatentBridge approaches both infringers (in consultation with customer's legal counsel) and non-infringing candidates.

PatentBridge presents the business terms and negotiates the deal, from term sheet to closing.

Most importantly, PatentBridge closes the deal. 

 

Closing deals. There simply is no substitute.

Proving the Market; Selling the Company

Besides brokering, PatentBridge also engages in technology development using a simple business model: build patented technologies to prototype stage, sell to enough customers to prove market acceptance, then sell the technology or company at a premium to a larger entity.

Review and Development of Patent Portfolios

The founder of PatentBridge has reviewed numerous patent portfolios using various techniques and programs.  The overarching purpose of a review and analysis is to determine which patents offer the greatest chance of being brokered at the highest price or royalty rate.

The goal is both to analyze and establish priorities over which patents offer the most marketability and financial potential. The analysis technique PatentBridge uses often depends on the relevant art.

PatentBridge provides you with business marketing information and services to assist you in determining the value of your patent and how best to broker it.  Once the determination is made, PatentBridge brokers your patents for you using its expertise to your greatest advantage.

Why Sell?*

The following excerpt offers an explanation why a patent owner may wish to sell his patents rather than seek to exploit it himself.

"I am often asked why any company with a promising patent would sell it. Why not exploit the patent yourself and keep all profits, runs the usual reasoning?

One of the most compelling motives is an inability for a small entity to muster all the people, factories, raw materials, scientists, managers, and salesmen to do so.  Quite simply, it is a considerable undertaking for any company to manage the explosive growth required to fully exploit a patent.  As an entity expands, it invariably faces constraints and shortages that will challenge its ability to satisfy customer demand, and do so in a timely manner.

There can be no assurance that anyone can anticipate all of the changing demands that expansion may place on the patentee's operational, manufacturing, shipping, marketing, labor, managerial and financial systems and controls or that the patentee will be able to continue to increase the capacity of such systems and controls.

Additionally, there can be no assurance that the patentee will not encounter impossibilities in meeting increased production needs, maintaining quality control, and recruiting and retaining qualified people.  If the patentee is not able to meet its growth and at the same time offer a quality product, its business and finances could suffer, possibly beyond the benefits from the increased sales arising from its patent monopoly.

Similarly, being a talented inventor does not necessarily translate into the talents required to exploit a patent. Scientists do not always make good salesman, nor do inventors routinely make good managers. Combining the best of both worlds by matching responsibilities with abilities is the key to lucrative licensing."

* Excerpted from Patent Licensing and Selling: Strategy, Negotiation & Forms, by Mark S. Holmes, Practising Law Institute, New York, NY.

A Word About Valuations

Every patentee and company with a patent portfolio is first and foremost interested in the sales price or royalties they will receive from their patents.

The methodology used to calculate a proposed sales price or royalty rate for a proposed deal is important; it can also vary by type of invention.

There are several approaches that can be used, the most appropriate one often dependent upon the purchaser or licensee.  In the case of licensing, the royalty rates for comparable products are often persuasive.  For example, if the invention is a medical device, the market royalty rates for a medical device performing similar functions may be the most useful benchmark.  If the customer’s patent offers better features than the device being compared to, a higher price or royalty may be justified.

If the license scheme is to license numerous users under a mass licensing approach, then a set or published royalty schedule will normally suffice.  If the potential license fees are substantial, then flexibility is key to tailoring a license deal for large customers.

 

PatentBridge frequently uses the following factors in negotiating patent royalty rates:

  • Strength of the patent (ability to withstand declaratory judgment)

  • Size of the potential market

  • Scope of the claims (narrow or broad)

  • Exclusive or non-exclusive

  • Territorial extent

  • Degree of innovation (disruptive or slight improvement)

  • Susceptibility to design around

  • Competing technologies

  • Royalty rates of comparable or competing products or services

  • Risks to licensee (ramp up costs, legacy issues)

  • Strategic fit (new product line)

  • Licensee finances

  • Motivation (e.g., profitability, maintaining competitive position)

  • Deal structure flexibility (cash, equity, mixture)

  • Royalty stacking