Understanding What’s On The Market
Jennifer Gallagher takes a look at how to determine the worth of a patent, strategies around patent auctions, and how to dive deeper into the portfolios for sale to find the hidden gems or potential liabilities.
Did you know there is a patent that can predict the end result of an auction (US7752119)? This patent highlights the analytics used in determining an auction’s worth by looking through the characteristics of a prior sale. It even includes a price predictor! Wow, if it were only that easy…
When inventors, businesses, and others decide to sell their patents, they often have no idea what their patents might be worth. Most often buyers, too, do not know what the potential patent acquisition candidates are worth or what a seller might be willing to accept. To address these needs, Innography offers several ways to analyze the portfolio of interest and determine the value, need, and overall health of the patents for sale.
Let’s start by listing some of the questions that might need to be answered before making a bid:
- What technologies are embodied in the target portfolio?
- What is the quality of the target portfolio?
- What are the deal-driver assets?
- What risks do I face in buying this portfolio?
For this example, let’s take a look at a current auction from ICAP – Xerox Corporate Sealed Bid Auction. These patents have been separated into 27 different lots and are expected to sell between $1M and $10M each. The patent lots have been organized by ICAP into categories such as web content, audio communications, touchscreen, networking, and print systems, but take a closer look into one of the lots:
Printers & Print Systems
Within our Text Cluster view, we can quickly evaluate a set of patents and organize them into categorical groupings based on significant phrases that appear within the patent’s title and abstract.
Taking those same patents into our new visualization feature called PatentScape™, we can dissect and examine broad technology areas. In our example to the left, we can point out the strongest patents within the subset, giving the buyer more information into what patents can quickly be utilized first.
Like no other tool on the market, Innography makes your daily work easier by providing more accurate insight for specific needs. We offer more than 50 different visualizations to help “tell the story” of portfolios being sold out there.
Not only is Innography correlating nearly 100 million worldwide patents with financial, litigation, market, and key business data for a complete picture of an IP landscape, Innography’s Managed Services is providing organizations with global patent solutions from skilled, in-house consultants. The IP Due Diligence Report is a comprehensive and rapid analysis of a patent portfolio being bought or sold. The report offers a detailed overview of portfolio strengths and weaknesses, identifies possible chain-of-title issues, highlights gaps within the patent set, identifies potential types of buyers and outlines key risks associated with the patents.
Only through a deep dive investigation, or due diligence, can the buyer begin to find the true value of the patents. On the ICAP site, they list 45 US patents, 47 foreign patents, and 2 foreign applications, but Innography shows me 145 assets. Might need to do a little digging, don’t you think?