Lessons learned First lesson: The global market is big, fragmented, immature and not very liquid Lesson two: Patent transactions are complex and no two are the same. Lesson three: It is a professional market, buyers and seller need and use trusted third parties. Lesson four: Professional relationships and trust are critical success factors. Lesson five: Time and opportunity drive success and value
2011 a banner year, 2012? Nortel 4.5BN transaction Google-Motorola transaction 12.5BN (17.000 patents) Google – IBM (2000) Not just US, Europe, Asia also (Apple) Hot sectors: Telecom Medical device Ecommerce LED (On TYNAX now +500 portfolios) Social networking
2012 observations Facebook vs. Yahoo Microsoft $1BN transaction More companies making patents available= more supply=IP is becoming an asset More buyers: Product companies Enforcement companies Private Equity investors= Fast growing market: 2012: $200BN
2012 observations A recent Trend: Operating company acquires patent portfolio with NPE> Nvidia-IV jointly buys 500 wireless patents Over 40 NPE is existance.See Patent Monetization Landscape= Fast growing market: 2012: $200BN
Trends and Observations in Taiwan Vibrant SME category companies (vs Korea/Japan) Focused on Mainstream technologies (e.g. consumer, mobile) File US patents vs other countries (US patents account for 80% of portfolio value) Early to market, Time to Market advantage
Opportunities for Taiwan Combination of mainstream technology-early to market= Good opportunities for Taiwanese companies TYNAX see higher success rate selling patents from Taiwan companies than other countries.
A Taiwanese Patent Transaction Profile SMEs Patent Porfolio in Mobile Video Graphics Technology. 2 US patents, 6 patent applications, plus TW and CN patents/ applications family Seller not able to commercialize technology Monetize through sale of portfolio. Price range$250k-500k. Typical transaction takes 6-9 mos.- This transaction completed in under 4 mos. Listed mid-Nov 11. Buyer interest: Dec11. Price nego: done 2 weeks end Dec11. .
A Taiwanese Patent Transaction Profile (contd)- PPA signed: end Jan12- Documents checklist issued- Closing Documents preparation/ Due Diligence Feb12 Transaction closed: early Mar12 Typical transaction takes 6-9 mos.This transaction completed in just over 3 mos. A record!
Lessons from A Taiwanese Patent Transaction A global patent transaction: Taiwan/US/ Sporevery doable. Good documentation and up-to-date filing will speed up process. Price nego confined to US patents. Knowledge of potential infringements helped process. Sell continuation patents as a part of portfolio instead of separate portfolio Patent family sold together. Ie Taiwan/ China counterparts.
China Opportunity China companies need to become international companies Financial climate create major opportunities for China $$$$ value IP and technology assets are available to a degree never seen before Asset prices are driven down by supply= Unique opportunity to move up the value chain for China companies (OEM to ODM)
China challenges China structural challenges (financial, legal, cultural, technical) Knowledge gap Experience gap Qualification gap = Big need for training and education