Patent Market Insights: Sellers, Buyers, Technologies and Pricing Trends
1. Business Sense • IP MattersBusiness Sense • IP Matters 1
Helping Companies Buy, Sell
and Monetize
Kent Richardson
IPBC Barcelona
June 2016
Contact Information:
+1 (650) 967-6555
info@richardsonoliver.com
Copyright 2012-2016 ROL
2. Business Sense • IP Matters
How Big Is the Patent Market?
2
• Since 2011, we have tracked $4.5B of brokered patent packages + $2.4B of non-brokered
• Over 2,000 packages with over 63,000 patent assets
• 118 technology categories represented from LEDs, Displays, Social Networks, Automotive
Robust market – Nearly $7B of patent deals tracked
• 566 brokered packages received containing nearly 9,000 patent assets
• Annual report available from http://www.richardsonoliver.com/news/2015/11/18/2015-brokered-patent-
market
2015 market remains robust
• Source Richardson Oliver Law Group LLP, 2015 Brokered Market Report
Copyright 2012-2016 ROL
$-
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
$8,000.00
2011-Q1
2011-Q2
2011-Q3
2011-Q4
2012-Q1
2012-Q2
2012-Q3
2012-Q4
2013-Q1
2013-Q2
2013-Q3
2013-Q4
2014-Q1
2014-Q2
2014-Q3
2014-Q4
2015-Q1
2015-Q2
2015-Q3
Total Asking Prices ($M) - Brokered and Private Market
Total Asking Price Unsold Total Asking Price Sold
3. Business Sense • IP Matters
What’s Hot in the Patent Market?
3
Who and
what gets
targeted?
Over 1,000 EOUs reviewed
5 years of data
Hot
companies Apple
Google
Microsoft
Samsung
Hot
technologies Communications and smartphones
Social
Wearable, storage, RFID, mail
Hot products
iPhone, Galaxy
Bing
Youtube
Xbox, TiVo
4. Business Sense • IP Matters
2015 Market Pricing
4
Asking Price $K
Top and bottom 5 data points from
each set removed
Per Asset Per US Patent
Average $189.88 $276.68
Min $16.95 $30.00
Max $925.00 $1,000.00
StdDev $183.18 $249.29
NumData 430 423
• Prices are down about ~$50K
• But, sales rate is 23% ahead of comparable period last year
• Prices vary substantially by package size
Market pricing
Copyright 2012-2016 ROL
5. Business Sense • IP Matters
Distribution of Seller Type by Sale Year
5
•Operating companies represent over 71% of the patents on
the market
•NPEs have substantially increased their sales up from 11%
to 16% - likely as a result of difficulties enforcing their
patents
•Companies obtaining cross-licenses prior to competitors
selling their portfolios will continue to benefit
Operating companies dominate the market
Top Sellers (All Years by Package Count)
Alcatel Lucent
Allied Security Trust (AST)
ATT
BAE Systems
ETRI
Fujitsu
HP
Italian National Research Council
Korea Institute of Science and Technology
(KIST)
RPX
Siemens
Sony Corporation
Spansion
Verizon
Xerox Corporation
• Source Richardson Oliver Law Group LLP, 2015 Brokered Market Report
2014 and 2015
Operating Company 71%
NPE 16%
Inventor 8%
University/Research 1%
Defensive Aggregator 1%
Other 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Distribution of Seller Type by Sale
Year
Copyright 2012-2016 ROL
6. Business Sense • IP Matters
Distribution of Buyer Type by Sale Year
6
•NPE buying remains a significant part of the market
with Intellectual Ventures leading the buying
Operating companies remain strong buyers
Top Buyers (All Years by Package Count)
Allied Security Trust (AST)
Apple Computer
Intellectual Ventures
LinkedIn
Google
RPX
Open Invention Network (OIN)
Qualcomm
• Source Richardson Oliver Law Group LLP, 2015 Brokered Market Report
2014 and 2015
NPE 42%
OpCo 34%
Defensive Aggregator 21%
Other 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Distribution of Buyers Type by Sale
Year
Copyright 2012-2016 ROL
7. Business Sense • IP Matters Copyright 2012-2016 ROL 7
BUSINESS SENSE • IP MATTERS
ROL Group has over 60 years of IP strategy and execution
experience. We ask the business questions first. We
blend in-house and large law firm experience to create
clear steps for success.
We guide companies through unique IP challenges—like
buying and selling patents, developing licensing
programs, defending against patent assertions, and
creating a value-driven IP portfolio. We give direction to
businesses that share our passion for new ideas, creative
problem solving and forward motion.
Contact Information:
+1 (650) 967-6555
info@richardsonoliver.com
8. Business Sense • IP Matters
Introductions: Kent Richardson
• 20 years of experience in patent monetization, development, and analysis
• Assist clients with monetize through sales and licensing
• Corporate to corporate assertions and counter-assertions
• $650M in patent license bookings and monetization experience
Partner, Richardson Oliver Law Group
• Semiconductor technology (PlayStation 3)
• Grew revenue from ~100M to ~200M
• 90% from patent licensing
VP Intellectual Property, Rambus
• 50% of revenue from patent licenses
• $36M Intel license. Additional licenses with Fujitsu, TSMC, Motorola, others
General Counsel, Numerical Technologies
• Strategic patent development for Numerical Technologies, Palm, 3COM, Webvan, venture backed
startups
Attorney, Wilson Sonsini Goodrich & Rosati
Attorney-Client Privileged & Confidential 8