| Summer 2009 IP Auction July 22-23 Chicago |
Listing Fees
Bidding Procedures/
Conditions of Sale
EVENT INFORMATION:
“We have been involved in the past two auctions presented by ICAP Ocean Tomo, including the inaugural one held in San Francisco, April 2006, and were quite successful, selling a patent at each event. This unique concept of an intellectual property auction has allowed the small entrepreneur/inventor another avenue in which to, as a minimum, promote their property to the market place if not to sell it outright. The entire experience has been quite rewarding and not just from the financial perspective, and we highly recommend anyone wishing to sell their intellectual property to consider this approach as a viable opportunity. ICAP Ocean Tomo should be complemented on the organization and implementation of a very professionally managed event.”
–Douglas Ballantyne, CTO, Paxton Developments, Inc.
Frequently Asked Questions
Why sell my patents through the ICAP Ocean Tomo Auction versus other alternatives?
Selling intellectual property is extremely difficult. It often requires a lengthy sales process, is difficult to attract the right purchasers, and results in a loss of negotiating leverage due to “no shop” agreements. The auction was created to address these difficulties, as well as to create a public marketplace for the transaction of intellectual property.
From the perspective of the individual IP seller, the standard requirement to enter into a “no shop” agreement with a potential purchaser in exchange for their willingness to begin due diligence procedures are in many ways counterproductive to the seller’s ultimate needs. They require assets to be pulled off the market for a period of time to enable a potential buyer to complete their due diligence process without the fear that the assets will be transacted during that period. When the term of the agreement ends, the potential buyer will either come back with a decision to decline purchase (in which case all other potential buyers have been eliminated due to the assets’ removal from the market), may elect to purchase but will likely drive down price knowing that competition has been eliminated, or simply request more time for diligence. The seller loses leverage and the benefits of a free market through all these options.
Notably, the live auction creates a sense of urgency and closure to the sales process. Moreover, by selling the assets in a public forum, this results in competitive bidding and pricing by market demand. In this case, the burden to purchase also shifts from the sellers to the buyers. Many sellers in our auctions utilize the auction’s marketing and public relations platform to sell their IP, whereby they, in addition to ICAP Ocean Tomo, would actively market their IP to potential purchasers. Additionally, through the live auction format, the seller is able to essentially dictate their minimum price (through setting a reserve) and terms to the potential buyers.
Does my intellectual property qualify for listing in the auction?
ICAP Ocean Tomo employs a number of evaluative techniques and proprietary methods to determine qualification of intellectual property to the auction. ICAP Ocean Tomo will conduct an initial assessment of submitted IP to determine if it is appropriate for live auction. It will be intensively reviewed to ensure that the highest quality property is at auction. For the patent assets, ICAP Ocean Tomo utilizes its proprietary rating and assessment platform, the Intellectual Property Quotient or (IPQ), which objectively scores and rates patent assets based on a proven statistical methodology. (For further information regarding the rating process or to receive your complete PatentRatings report, please visit www.patentratings.com).
To see if your IP qualifies for listing in Ocean Tomo’s Live Intellectual Property Auctions, please submit online by clicking here.
What kind of intellectual property is appropriate for submission to the auction?
ICAP Ocean Tomo accepts patent, trademark (or brand), copyright and domain name submissions.
In regards to patents, the most lucrative and appropriate for auction are those covering technology that is currently in use in the market, but is otherwise not of use to the current assignee. The following are areas with high buyer interest:
Can I place a reserve? How is the reserve price determined?
Yes. The reserve price is the minimum amount the seller is willing to accept. ICAP Ocean Tomo will work with you in determining appropriate sale and reserve prices, however ultimately the reserve price is decided by the seller. Reserves remain confidential.
How do I put my IP into the auction?
Once IP has been qualified for the auction by ICAP Ocean Tomo, the seller will execute two documents. The first is the Seller Consignment Agreement. This is an agreement between the seller and Ocean Tomo, in which the seller consigns his/her IP to ICAP Ocean Tomo for the purpose of selling it at the Auction, and outlines general terms and conditions of the listing and sale. The second document is the IP Sale Agreement, which is the agreement between the seller and the buyer for the sale of the IP. Along with that agreement is a one page assignment completed for the purposes of registration with the USPTO. All sellers assign their IP in advance of auction (except domain names), but leave the assignee blank. The assignment will be completed and released only upon a winning bidder from the auction, and receipt and clearance of the funds from that bidder by Ocean Tomo.
What do I receive if my IP sells at the auction?
Consistent with standard auction practice, the Seller will receive 85% of the hammer price while the bidder will pay a 10% buyers premium. For example, with a $1M IP sale at the auction, the seller will receive $850,000 and the bidder will pay $1.1M.
How do I qualify to bid?
All bidders must complete the Bidder Agreement, which is an agreement between ICAP Ocean Tomo Auctions, LLC and the Bidder outlining the terms and conditions of participation, and submit it with the bidder registration fee. The bidder registration form, an exhibit to the bidder agreement allows you to specify the method of bidding you prefer (see below for bidding options). Bidders will need to submit to ICAP Ocean Tomo Auctions, LLC, at least 10 days prior to the Live Auction, a Bank Letter of Guarantee for the amount up to which you wish to bid. For further assistance or questions regarding registration you may contact auctions@oceantomo.com.
What are the different ways bidders can register to bid at the auction?
There are a variety of ways to participate, including:
I don’t want anyone to know I’m a bidder. Will I be able to bid and conduct due diligence anonymously?
Bidders maintain the right of anonymity at all times. Bidders will utilize our online secure data room, maintained by an independent third party, to assist the due diligence process. The Data Room is secure by definition, and therefore bidders are assured that their activity is confidential and anonymous. Bidders have the option of “double-blind” bidding, in which an ICAP Ocean Tomo representative will execute bids on the behalf of the registered bidder in accordance with the bidder’s written instructions. Furthermore, bidders may utilize a shell LLC or other means of hiring their own representative to bid at auction so that even ICAP Ocean Tomo representatives are not aware of their identity. It is a cardinal rule of auction practice that a bidder maintain the right of anonymity. ICAP Ocean Tomo Auctions, LLC does everything it can to facilitate and adhere to this rule.
When will the auction catalogue be available?
The print version of the auction catalogue is generally available one month before an auction event. The online version may be available earlier. ICAP Ocean Tomo will send periodic updates to those who have already purchased the auction catalogue. Updated catalogue listings will also be posted in the online data room.
How big will the auction be?
ICAP Ocean Tomo Auctions have consistently drawn over 350 professionals to each event, including Fortune 500 IP professionals, C-level executives from small to mid-size companies, investors, professional inventors, attorneys and media. The auction and related events including the conference and gala dinner, are unique, first-class and dynamic venues to network with like-minded professionals.
What kinds of trademarks are appropriate for submission in the auction?
The ideal trademarks are those that are no longer in use but have not yet been abandoned. Trademarks should garner recognition in the marketplace. A buyer will want to build a business based on the trademark’s distinctiveness and established name in the market. Therefore trademarks that, at one time, were well known and recognized are appropriate submissions.
What if my trademark is abandoned?
Abandonment of a trademark, while it may decrease its market value, in no way excludes its sale. Once a trademark’s last date of use elapses past 3 years (in some cases 5), the trademark is said to be abandoned. Any potential Buyer must be notified if a trademark is abandoned, as he/she will need to re-file for its registration. All re-files must be bona-fide, and therefore must be done by the Buyer, and not the Seller. The trademark office will need only to verify the sale of trademark rights between Assignor and Assignee, as abandonment does not preclude rights to a trademark. The only preclusion that the trademark office adheres to is expiration, which occurs 10 years after the last date of use.
Auctions Professionals
Why sell my patents through the ICAP Ocean Tomo Auction versus other alternatives?
Selling intellectual property is extremely difficult. It often requires a lengthy sales process, is difficult to attract the right purchasers, and results in a loss of negotiating leverage due to “no shop” agreements. The auction was created to address these difficulties, as well as to create a public marketplace for the transaction of intellectual property.
From the perspective of the individual IP seller, the standard requirement to enter into a “no shop” agreement with a potential purchaser in exchange for their willingness to begin due diligence procedures are in many ways counterproductive to the seller’s ultimate needs. They require assets to be pulled off the market for a period of time to enable a potential buyer to complete their due diligence process without the fear that the assets will be transacted during that period. When the term of the agreement ends, the potential buyer will either come back with a decision to decline purchase (in which case all other potential buyers have been eliminated due to the assets’ removal from the market), may elect to purchase but will likely drive down price knowing that competition has been eliminated, or simply request more time for diligence. The seller loses leverage and the benefits of a free market through all these options.
Notably, the live auction creates a sense of urgency and closure to the sales process. Moreover, by selling the assets in a public forum, this results in competitive bidding and pricing by market demand. In this case, the burden to purchase also shifts from the sellers to the buyers. Many sellers in our auctions utilize the auction’s marketing and public relations platform to sell their IP, whereby they, in addition to ICAP Ocean Tomo, would actively market their IP to potential purchasers. Additionally, through the live auction format, the seller is able to essentially dictate their minimum price (through setting a reserve) and terms to the potential buyers.
Does my intellectual property qualify for listing in the auction?
ICAP Ocean Tomo employs a number of evaluative techniques and proprietary methods to determine qualification of intellectual property to the auction. ICAP Ocean Tomo will conduct an initial assessment of submitted IP to determine if it is appropriate for live auction. It will be intensively reviewed to ensure that the highest quality property is at auction. For the patent assets, ICAP Ocean Tomo utilizes its proprietary rating and assessment platform, the Intellectual Property Quotient or (IPQ), which objectively scores and rates patent assets based on a proven statistical methodology. (For further information regarding the rating process or to receive your complete PatentRatings report, please visit www.patentratings.com).
To see if your IP qualifies for listing in Ocean Tomo’s Live Intellectual Property Auctions, please submit online by clicking here.
What kind of intellectual property is appropriate for submission to the auction?
ICAP Ocean Tomo accepts patent, trademark (or brand), copyright and domain name submissions.
In regards to patents, the most lucrative and appropriate for auction are those covering technology that is currently in use in the market, but is otherwise not of use to the current assignee. The following are areas with high buyer interest:
- Consumer Products
- Digital Music & Video
- e-Commerce & Web Services
- Integrated Circuits & Semiconductors
- Integration Technology
- Interactive TV & VOD
- Online & Mobile Advertising
- RFID & Barcode Technology
- Security/Digital Rights Management
- Social Networking & Web 2.0
- User Interface Technology
- Wireless/Network Communications
Can I place a reserve? How is the reserve price determined?
Yes. The reserve price is the minimum amount the seller is willing to accept. ICAP Ocean Tomo will work with you in determining appropriate sale and reserve prices, however ultimately the reserve price is decided by the seller. Reserves remain confidential.
How do I put my IP into the auction?
Once IP has been qualified for the auction by ICAP Ocean Tomo, the seller will execute two documents. The first is the Seller Consignment Agreement. This is an agreement between the seller and Ocean Tomo, in which the seller consigns his/her IP to ICAP Ocean Tomo for the purpose of selling it at the Auction, and outlines general terms and conditions of the listing and sale. The second document is the IP Sale Agreement, which is the agreement between the seller and the buyer for the sale of the IP. Along with that agreement is a one page assignment completed for the purposes of registration with the USPTO. All sellers assign their IP in advance of auction (except domain names), but leave the assignee blank. The assignment will be completed and released only upon a winning bidder from the auction, and receipt and clearance of the funds from that bidder by Ocean Tomo.
What do I receive if my IP sells at the auction?
Consistent with standard auction practice, the Seller will receive 85% of the hammer price while the bidder will pay a 10% buyers premium. For example, with a $1M IP sale at the auction, the seller will receive $850,000 and the bidder will pay $1.1M.
How do I qualify to bid?
All bidders must complete the Bidder Agreement, which is an agreement between ICAP Ocean Tomo Auctions, LLC and the Bidder outlining the terms and conditions of participation, and submit it with the bidder registration fee. The bidder registration form, an exhibit to the bidder agreement allows you to specify the method of bidding you prefer (see below for bidding options). Bidders will need to submit to ICAP Ocean Tomo Auctions, LLC, at least 10 days prior to the Live Auction, a Bank Letter of Guarantee for the amount up to which you wish to bid. For further assistance or questions regarding registration you may contact auctions@oceantomo.com.
What are the different ways bidders can register to bid at the auction?
There are a variety of ways to participate, including:
- Bidding in the room – With this option, bidders will receive an actual paddle with a paddle number prominently displayed on it.
- Absentee bids – Bidders are able to place written absentee bids with ICAP Ocean Tomo Auctions, LLC in advance of the auction specifying the lots and amounts they wish to bid up to.
- Telephone bids – Bidders are able to place their bids by phone. ICAP Ocean Tomo Auctions, LLC will have a designated representative contact you at the appropriate times in the auction, per your instructions on the lots you wish to bid on. They will inform you of the bidding status and you will be able to place bids through the phone representative.
- By Agent – Bidders are able to send an agent to bid on their behalf, or if they prefer, have a representative of ICAP Ocean Tomo Auctions, LLC place their bids for them
I don’t want anyone to know I’m a bidder. Will I be able to bid and conduct due diligence anonymously?
Bidders maintain the right of anonymity at all times. Bidders will utilize our online secure data room, maintained by an independent third party, to assist the due diligence process. The Data Room is secure by definition, and therefore bidders are assured that their activity is confidential and anonymous. Bidders have the option of “double-blind” bidding, in which an ICAP Ocean Tomo representative will execute bids on the behalf of the registered bidder in accordance with the bidder’s written instructions. Furthermore, bidders may utilize a shell LLC or other means of hiring their own representative to bid at auction so that even ICAP Ocean Tomo representatives are not aware of their identity. It is a cardinal rule of auction practice that a bidder maintain the right of anonymity. ICAP Ocean Tomo Auctions, LLC does everything it can to facilitate and adhere to this rule.
When will the auction catalogue be available?
The print version of the auction catalogue is generally available one month before an auction event. The online version may be available earlier. ICAP Ocean Tomo will send periodic updates to those who have already purchased the auction catalogue. Updated catalogue listings will also be posted in the online data room.
How big will the auction be?
ICAP Ocean Tomo Auctions have consistently drawn over 350 professionals to each event, including Fortune 500 IP professionals, C-level executives from small to mid-size companies, investors, professional inventors, attorneys and media. The auction and related events including the conference and gala dinner, are unique, first-class and dynamic venues to network with like-minded professionals.
What kinds of trademarks are appropriate for submission in the auction?
The ideal trademarks are those that are no longer in use but have not yet been abandoned. Trademarks should garner recognition in the marketplace. A buyer will want to build a business based on the trademark’s distinctiveness and established name in the market. Therefore trademarks that, at one time, were well known and recognized are appropriate submissions.
What if my trademark is abandoned?
Abandonment of a trademark, while it may decrease its market value, in no way excludes its sale. Once a trademark’s last date of use elapses past 3 years (in some cases 5), the trademark is said to be abandoned. Any potential Buyer must be notified if a trademark is abandoned, as he/she will need to re-file for its registration. All re-files must be bona-fide, and therefore must be done by the Buyer, and not the Seller. The trademark office will need only to verify the sale of trademark rights between Assignor and Assignee, as abandonment does not preclude rights to a trademark. The only preclusion that the trademark office adheres to is expiration, which occurs 10 years after the last date of use.
Auctions Professionals
| Michael Anglin | 312-327-4438 OFFICE | 312-327-4401 FX |
| Director of Operations | manglin@oceantomo.com | Download v-card | Biography |
| Kristi Stathis | 312-377-4862 OFFICE | 773-294-4360 CELL |
| Director/Media & Marketing | kstathis@oceantomo.com |
| Auctions | 312-377-4851 PH | auctions@oceantomo.com |