Wednesday, October 22, 2014

Patent Monetization New Business Model Case Study (5): IP-Backed Insurance & Lending

This patent monetization model utilizes an insurance policy on the value of IP (e.g. http://www.patentinsurance.com/). Then, the insurance policy becomes collateral for a bank loan for any amount of money up to the insured value. One example is the lending by a university's endowment/pension fund to a team with some good new technology and patents that obtained such a patent backed insurance policy. If the team succeeds, the university's fund gets it loan monies paid back, plus some equity gains.  If the team fails, the university's fund just gets it loan monies back from the insurance policy.

Thanks to Greg Aharonian (Internet Patent News Service) for this information.


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Tuesday, October 21, 2014

Reinventing Patent Monetization Business Model

Patent Reuse Bank
This patent monetization model utilizes the existing patents that are developed by the government funded research institutions and are under-exploited for commercial purposes. The patent reuse bank categorizes the patents by specific industry, market, technology and pools them into a web platform. Usually, high tech SMEs in needs of specific patent portfolios license them for their commercial uses.

Patent Cloud Platform
This patent monetization model utilizes the cloud platform to link inventors, patent users, and investors. A patent development project (patenting on demand) can be initiated by inventors, patent users, or investors. For example, a patent user requests patent development for a specific commercial use, and an investor or cloud funding investors can fund the project. A specific monetization ideal also can be obtained from the cloud sourcing.

Patent Factory
This patent monetization model exploits the existing high tech SMEs that are usually in IT and telecommunications and in financial difficulties in their main business. The patent factories develop specifically targeted patent portfolios and strategically package the patents for sale. Usually, private equities fund the patent factories for a rather quick return (around two years).

IP-Backed Spin-Off
This patent monetization model utilizes existing R&D team members and patents. One example is the Newracom, Inc., which is a a start-up formed by WiFi research team members from ETRI in S. Korea supported by more than 100 patents and funded $15M from a venture capital. Another example is CF Global, which is the first spin-off from Intellectual Venture’s Invention Development Fund. 

IP-Backed Insurance & Lending
This patent monetization model utilizes an insurance policy on the value of IP (e.g. http://www.patentinsurance.com/). Then, the insurance policy becomes collateral for a bank loan for any amount of money up to the insured value. One example is the lending by a university's endowment/pension fund to a team with some good new technology and patents that obtained such a patent backed insurance policy. If the team succeeds, the university's fund gets it loan monies paid back, plus some equity gains.  If the team fails, the university's fund just gets it loan monies back from the insurance policy.



Any other models?

Alex G. Lee Ph.D, J.D
Princiapl IP Strategist
TechIPm, LLC


©2014 TechIPm, LLC All Rights Reserved

Thursday, October 9, 2014

Patent Monetization New Business Model Case Study (4): Patent Cloud Platform

This patent monetization model utilizes the cloud platform to link inventors, patent users, and investors. A patent development project (patenting on demand) can be initiated by inventors, patent users, or investors. For example, a patent user requests patent development for a specific commercial use, and an investor or cloud funding investors can fund the project. A specific monetization ideal also can be obtained from the cloud sourcing.

Patent Cloud Platform Best Practice: please contact Alex Lee (alexglee@techipm.com) for details.

…To be added more cases


©2014 TechIPm, LLC All Rights Reserved

Patent Monetization New Business Model Case Study (3): Patent Reuse Bank

This patent monetization model utilizes the existing patents that are developed by the government funded research institutions and are under-exploited for commercial purposes. The patent reuse bank categorizes the patents by specific industry, market, technology and pools them into a web platform. Usually, high tech SMEs in needs of specific patent portfolios license them for their commercial uses.

Patent Reuse Bank Best Practice: please contact Alex Lee (alexglee@techipm.com) for details.

…To be added more cases


©2014 TechIPm, LLC All Rights Reserved

Patent Monetization New Business Model Case Study (2): Patent Factory

This patent monetization model exploits the existing high tech SMEs that are usually in telecommunications and in financial difficulties in their main business. The patent factories develop specifically targeted patent portfolios and strategically package the patents for sale.  Usually, private equities fund the patent factories for a rather quick return (around two years).

Patent Factory Best Practice: please contact Alex Lee (alexglee@techipm.com) for details.

…To be added more cases


©2014 TechIPm, LLC All Rights Reserved

Intellectual Property (Patent) in M&A Information Center

Apple’s Strategic Alignment in IP and M&A

Value of IP in Technology M&A

IP Evaluation for M&A Investment
http://www.techipm.com/alexdb/Patent%20Evaluation%20Services%20for%20Investment%20Professionals.pdf

Inside the role of IP in M&A transactions

The evolving role of intellectual property in M&A transactions

When Patent Trolls Interrupt Your M&A Deal

Top 100 US Cities for Technology M&A



©2014 TechIPm, LLC All Rights Reserved

Wednesday, October 8, 2014

Patent Monetization New Business Model Case Study (1): IP-Backed Spin-Off

Company name: Newracom, Inc.
Location: Irvine, California
Background: WiFi research team members from ETRI in S. Korea formed a start-up supported by more than 100 patents and funded $15M from a venture capital.
Business model: IP protected WiFi connectivity SW & chipset solutions (IEEE 802.11ah based WiFi sensors for the smart grid/IoT/M2M applications)
Patent monetization: Licensing royalty of ETRI’s patents from Newracom; profit from customized IP solutions

Company name: CF Global
Location: Bellevue, Washington
Background: The first spin-off from Intellectual Venture’s Invention Development Fund, which works with the inventor of Coffee Flour, Dan Belliveau, who is a founder and CEO of CF Global.
Patent monetization: Profit from the equity of CF Global business

...... To be added more cases

©2014 TechIPm, LLC All Rights Reserved


Tuesday, October 7, 2014

Internet of things (IoT) Patent Case Study (1): US20130041997 (Internet of Things Service Architecture and Method for Realizing Internet of Things Service)

Technical Field: Architecture of an internet of things (IoT) service and a method for implementing an IoT service
Assignee: ZTE Corporation
Priority date: Apr 30, 2010
Family: CN102238573A, EP2566281A1, EP2566281A4, WO2011134318A1
Prior art: US8391278 (Method of providing a service over a hybrid network and system thereof; Joliper Ltd.)
Referenced by US8782195 (Group operations in machine-to-machine networks using a shared identifier; Ericsson)

Summary
An architecture of an internet of things (IoT) comprises: multiple levels of IoT service platforms, wherein a superordinate IoT service platform is configured to manage one or more of the following function entities: an IoT terminal, an IoT terminal gateway, a subordinate IoT service platform, a special service platform and a service gateway.

The special service platform is configured to provide one or more of the following functions: video service, audio service, streaming media service, large data volume service, high real time service and industry application;
the service gateway is configured to converge data.

Management functions provided by the superordinate IoT service platform for one or more of the subordinate IoT service platform, special service platform and service gateway comprise one or more of: registration, login, logout, data synchronization and heartbeat.

Service data provided by the superordinate IoT service platform for the subordinate IoT service platform and\or special service platform further comprise at least one of: service policy, service parameter, service configuration parameter, service content and service subscription data.

The IoT service platform and\or special service platform is further configured to provide the IoT terminal and the IoT terminal gateway with at least one of the following functions: registration, login and logout.

The data synchronization comprises at least one of the following:
the superordinate IoT service platform synchronizing data to the subordinate IoT service platform or special service platform;
the subordinate IoT service platform or special service platform synchronizing data to the superordinate IoT service platform.

The M2M service platform or the special service platform is configured to provide registration to the M2M terminal and M2M terminal gateway in the following manner:
judging whether a registration message is processed by the M2M service platform or the special service platform;
if yes, processing the registration message to the M2M terminal or M2M terminal gateway; if not, delivering the registration message to a superordinate M2M service platform or special service platform.

The service gateway is configured to provide the IoT terminal and the IoT terminal gateway with at least one of the following functions: registration, login and logout.

The service gateway is configured to provide registration to the IoT terminal and IoT terminal gateway in the following manner:
receiving a registration message sent from the IoT terminal or IoT terminal gateway; and
delivering the registration message to a superordinate IoT service platform or special service platform of the service gateway.

The IoT service platform or special service platform is configured to provide login to the IoT terminal and IoT terminal gateway in the following manner:
receiving a login message sent from the IoT terminal or IoT terminal gateway to the IoT service platform or special service platform; and
the IoT service platform or special service platform judging whether the login message is to be processed by the IoT service platform or special service platform;
if yes, the IoT service platform or special service platform processing the login message to the IoT terminal or the IoT terminal gateway; if not, delivering the login message to a superordinate IoT service platform of the IoT service platform and special service platform, or the IoT service platform delivering the login message to the special service platform.

The service gateway is configured to provide login to the IoT terminal and IoT terminal gateway in the following manner:
receiving a login message sent from the IoT terminal or IoT terminal gateway; and
delivering the received login message to a superordinate IoT service platform or special service platform.

The IoT service platform or special service platform is configured to provide logout to the IoT terminal and IOT terminal gateway in the following manner:
receiving a logout message sent from the IoT terminal or IoT terminal gateway; and
judging according to the logout message whether the logout message is processed by the IoT service platform or special service platform to the IoT terminal or IoT terminal gateway;
if yes, the IoT service platform or special service platform processing the logout message to the IoT terminal or IoT terminal gateway; if not, delivering the logout message to a superordinate IoT service platform or special service platform.

The service gateway is configured to provide logout to the IoT terminal and IoT terminal gateway in the following manner:
receiving a logout message sent from the IoT terminal or IoT terminal gateway; and
delivering the logout message to a superordinate IoT service platform or special service platform.
The IoT service platform or special service platform is configured to make judgment according to one or more of the following information in the message sent by the IoT terminal or IoT terminal gateway:
IoT gateway device identifier, IoT gateway device type, IoT terminal identifier, IoT terminal type, application type, application identifier and subscription information.

The IoT comprises one or more of M2M network, ubiquitous network and sensor network.


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