The “marketplace” for intellectual property, and patents in particular, is represented in commercial licensing and sale transactions as well as by an award of reasonable royalties in the courts. Since the passing of the American Invents Act (AIA), there has been significant change in both segments as patent owners and counterparties seek to digest changing conditions. The rigors of the legal process make it even more difficult for the judicial market to adjust as the process for assessing value follows a process which is not easily amenable to change.
Earlier this month House Judiciary Committee Chairman Robert W. Goodlatte (R-VA) named Rep. Darrell Issa (R-CA) Chairman of the IP Subcommittee on the House Judiciary Committee. Rep. Issa is well known as a successful inventor, patentee, and businessman, having founded Directed Electronics. Ocean Tomo research presents a strong case that Issa is right for the job given the quality of his inventions as well as his experience in USPTO procedure and later use of his inventions as financing collateral. A summary of our research follows.
In our introductory video on Ocean Tomo’s 2015 IP Market Forecast, I discussed ten insights that played crucial roles in our 2015 plans. Today’s video focuses on how we plan to address two of those observations: Business Focused Patent Prosecution and Outsourced Research & Development (R&D) Collaboration.
For more than a decade, transactions of patent assets have been characterized by declining pricing trends on a per asset basis, and this downward pressure on price continues today. Data collected by ThinkFire on patent transactions that took place between 2002 and 2008 reveals a higher median but a lower average cost per patent family in 2008 as compared to the overall period covered in the study. This was due to two primary reasons: (i) a number of patents in 2008 were transacted at prices substantially lower than the 2002-2007 average and (ii) 2008 saw a higher frequency of de
Intellectual property (“IP”) may not be thought of as the most obvious asset used as collateral in security-backed financing, but it has existed since the late 19th century. Famously, Thomas Edison used his patent on the electric light bulb to secure financing to start General Electric. Traditional asset-backed lending is meant to provide businesses with immediate funds and potentially ongoing capital based on a percentage of the value of the company's tangible assets, such as buildings and inventory.
Today the Ocean Tomo 300® Patent Index (OTPAT), the only index based on the value of corporate intellectual property, was reconstituted.
Last week provided me with a special opportunity to address the global IP team of a Fortune 500 multinational telecommunications company at their bi-annual strategic planning meeting. I was scheduled for the post lunch address in the middle of the four day event that had more than two hundred company participants, Chaired by the company CIPO. My invitation was to share Ocean Tomo's long-range view of the IP marketplace extending to 2020 and beyond.
The semiconductor industry is unique in that its scope stretches across numerous market applications (e.g., automotive, computing, consumer electronics, industrial, wireless communications). Much of the growth in semiconductors can be attributed to the increasing demand in the device technology sectors (e.g., computers, tablets, smartphones). Due to this relationship, the semiconductor industry has become much more cyclical.1 As a result, semiconductor manufacturers have become increasingly wary of R&D spending.
At the Licensing Executives Society (LES) Annual Meeting this morning in San Francisco, Ocean Tomo CEO Jim Malackowski and Ocean Tomo Managing Director James Trueman announced Ocean Tomo’s next generation intellectual property auction platform.