IP backed financing has been a viable option for companies to raise financing, and is being increasingly resorted to. This report tracks the trends of this financing route, studying the relevant patent assignment records. Prominent sectors, companies, and financial entities involved in IP backed financing transactions are tracked for a six-year period from 2009-2014. Business and financial analysts who wish to understand the impact of a company's IP (read intangible) assets on it's valuation and financing options, will find useful insights in this report.

1. IP BACKED FINANCING
Top Companies – raising Financing (by no. of applications)
General Motors15,866
12,946 Avago Technologies
10,023 Alcatel Lucent
8,438 Kodak
8,149 Freescale
5,910 Seagate
4,609 Dell
3,162 Avaya
2,914 Chrysler
2,313 Ps4 Luxco
Top Financing Entities (by no. of applications)
Major Industries - raising Financing (by no. of applications)
Financing Entities vs Companies (Transactions)
Trends
Banks vs Transacted Technologies
1. Kodak (5,329)
2. Seagate (5,243)
3. Chrysler (2,548)
1. Kodak (5,329)
2. Dell (4,603)
3. Scient Games Int (2,242)
1. Freescale (8,156)
2. General Motors (7,465)
3. Kodak (7,762)
1. Avago (12,955)
2. Unisys (1,807)
3. Ciena (1,569)
1. Alcatel Lucent (10,026)
2. Carestream (1,011)
3. Novell (559)
1. Avaya (3,096)
2. Dell (4,464)
3. Momentive (1,300)
1. Seagate (5,486)
2. Spectrum Brands (1,169)
3. Quantum Corp (657)
1. General Motors (14,731)
2. Kodak (5,917)
3. Optis Wireless Tech. (636)
1. Unisys (1,583)
2. Affymetrix Inc. (604)
3. Heritage Home Group (389)
1. General Motors (9,709)
2. Chrysler (2,540)
Transportation Data Storage
Digital Data
Processing
Digital
Communication
IT Methods for
Management
Television & Video
Transmission
Mechanical
Elements
Medical
Devices
Tele -
communications Semiconductors
4,898 4,778 3,770 2,340 2,324 2,176 2,171 1,877 1,866 1,331
Industry
No. of
Applications
6,650 4,075 2,750 2,586 2,152 1,826 1,727 1,421 1,407 1,318
Digital Data
Processing
Digital
Communication
Checking
Devices
Industry
No. of
Applications
IT Methods for
Management Printing
Containers &
Packagers
Television & Video
Transmission Polymers
Mechanical
Elements Gaming
1. Avago (3,310)
2. Dell (2,819)
3. Freescale (1,611)
1. Alcatel Lucent (5,800)
2. Avago (1,649)
3. Avaya (1,448)
1. Endo Pharmaceutical (576)
2. Hologic (444)
3. Masimo Corp (366)
1. Freescale (2,975)
2. Avago (2,532)
3. Ps4 Luxco (1,064)
1. General Motors (6,108)
2. Chrysler (1,245)
3. Lear (887)
1. First Data Corp (536)
2. AOL (361)
3. Alcatel Lucent (331)
1. Seagate (4,750)
2. Avago (1,334)
3. Ps4 Luxco (1,213)
1. Alcatel Lucent (1,743)
2. Avaya (1,377)
3. Aspect Software (415)
1. General Motors (3,324)
2. Chrysler (450)
3. Federal Mogul Corp (361)
Sources:
http://www.ipos.gov.sg/IPforYou/IPforBusinesses/IPFinancingScheme.aspx
http://www.srr.com/article/financing-alternatives-companies-using-intellectual-property-collateral
http://www.asiaiplaw.com/article/41/1817/
http://www.ipo.org/wp-content/uploads/2013/04/Securitisation_of_IP_in_the_US.pdf
http://www.patent-innovations.com/documents/201306LimitedMonopoly-PatentsasCollateral.pdf
http://patent-lawyers.usattorneys.com/alcatellucent-patent-monetization-program-microsoft-sues-samsung-patent-royalty-war/
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2356015
http://www.wpto.com.tw/en/news-detail.php?nid=746
http://www.worldipreview.com/article/new-focus-on-ip-valuation-in-2013
http://www.kimchang.com/newsletter/templates/newsletter_ip_en_summerFall2013_article08.html
http://business.asiaone.com/news/intellectual-property-collateral-companies
http://amsacta.unibo.it/2705/1/Munari_Odasso_Toschi_EE_Chapter.pdf
http://www.oecd-ilibrary.org/science-and-technology/valuation-and-exploitation-of-intellectual-property_307034817055
http://www.iam-media.com/blog/Detail.aspx?g=7d2e49be-4f84-461a-939e-2fb73664db2a
http://www.iam-media.com/blog/Detail.aspx?g=481b76b6-637f-427f-b8d6-78d06cece504
https://www.relecura.com/reports/IP_Backed_Financing.pdf
https://www.iconfinder.com/
Disclaimer:
This infographic, including the information and analysis and any opinion or recommendation, is neither legal advice nor intended for investment purposes. This
document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied
warranties and conditions of merchantability or fitness for a particular purpose. INDUS TechInnovations specifically disclaims any liability with respect to this
document and no contractual obligations are formed either directly or indirectly by this document.
Copyright © 2015 Relecura Inc. All rights reserved.
Infographic created by:
www.relecura.com
contact@relecura.com
The data represented holds patent assignments for a 6 year period
(2009-14) portraying the patent transaction records by entities
employing intangible assets as a route to raise debt financing.
208 123 27 26 23 19 17 16
4,438 3,332 3,227 2,914 2,273 2,183 1,957 1,342 1,301 1,220
No. of
Applications
Transportation
Digital Data
Processing Semiconductors
Mechanical
Elements
Engines, Pumps
& Turbines Printing
Television & Video
Transmission Polymers
Digital
Communication Green TechnologyIndustry
185 79 43 37 20
1522
JP Morgan Chase
Bank of America
Citigroup
No. of High
Quality Patent
Applications
Organization
No. of High
Quality Patent
Applications
Assignors
0
5,000
10,000
15,000
20,000
1 2 3 4 5 6
JP Morgan Chase 9,334 4,762 6,421 5,453 10,898 9,498
Bank of America 5,042 5,117 4,482 4,080 19,737 8,674
Citigroup 9,380 6,485 2,896 9,829 3,331 2,410
Execution Year Trends
201120102009 201420132012
0
500
1000
1500
2000
2500
3000
3500
Filing Year Trends
JP Morgan Chase Bank of America Citigroup
Some of the patents held as collateral were filed in the 1980s and 1990s.
Patent Assignment Execution Trend
2009 2010 2011 2012 2013 2014
43,490
53,911
43,236 45,173
71,147
66,918 The execution trend is
based on 896,254
transactions comprising of
333,577 applications*.
*An application refers to a
set of patent transactions
with the same application
number, representing a
single application.
6 6 3 2 2
No. of High
Quality Patent
Applications
Organization
164 103 102 45 45 27 27 22 18 16
46,897 34,658 32,716 31,369 27,172 18,758 16,142 12,77448,804 12,212
WellsFargo
WilmingtonTrust
CreditSuisse
TheBankof
NewYorkMellon
GECapital
USTreasury
Citigroup
DeutscheBank
BankofAmerica
JPMorganChase
1. Kodak (1,820)
2. Rovi Corp (1,373)
3. Arris Group (535)
Year Country Government / Bank Scheme / Purpose Offerings
1995 Japan Development Bank of
Japan
Loans to companies in
middle development
stage
16 billion Yen for 260
IP backed loans (in a
decade)
2010 China State Intellectual
Property Office
IPR Pledge Financing
Program(started in 2008)
25 billion Yuan for
2000 projects
2013 Malaysia Government IPR Financing Fund
Scheme
RM200 million
(US$65 million)
2013 Korea Korea Development
Bank
Loan programs by
pledging IPR as collateral
2 billion Korean Won
(about US$1.8
million)
2014 Singapore Government IP 101 (loans using IP as
collateral)
$100 million
2014 China China Development
Bank
Loan to Quanlin paper
against a portfolio of
trademark and patent
rights
RMB7.9 million
(approx. $1.3 billion)
against a portfolio of
110 patents and 34
trademarks
N/A Germany Landesbank Rheinland-
Pfalz
Financing of
development projects of
mid-size companies
(technical
documentation of
research projects as
collateral)
40 transactions for
EUR140 million (in a
4 year period)
IP Financing Schemes
Company Financial Entity Loan Raised (Patents)
GIK Worldwide Pitney Bowes Capital US$57 million
Eastman Kodak Citicorp North America, Inc. US$950 million (7766 patents)
Insite Vision Bank of New York US$6 million (32 pharma
patents)
Cambridge Display
Technologies
Lloyds TSB US$15 million
Alcatel Lucent Goldman Sachs & Credit
Suisse
US$2.1 billion
started company
The General
Electric Company
Thomas Alva
Edison
in 1880’s
Incandescent
Electric Light
Bulb Patent
as collateral
Secure
Financing
Other Instances
IP Financing Process
IP Backed Loan Cases
IP Asset
(R&D &
Technology
Sector)
Financial Entities
(Bank, Venture
Capitalist,
Company
Financing Arm)
Valuation
(Cost Based,
Market Based,
Income Based)
Formal
Application
(To Financial
Entities)
IP Backed
Financing
(Loans,
Securitization, Sale
& License Back )
IP as a collateral can be defined as “a borrower’s pledge of specific property, such as
future Cash Flows from existing IP assets, or rights to the underlying IP itself, in order
to provide recourse for the lender in the event of loan default”.
The First Instance