Reinventing Litigation Solutions LexInnova is a pre-eminent legal solutions provider that caters to IP and litigation related needs of clients across the globe IP Revenue Models Licensing IP Revenue Models Litigation Sale 2 IP Revenue Models Licensing IP Revenue Models Litigation Sale 3 Licensing Licensing Specialists • Entities that function as intermediaries or negotiators by assisting patent owners in finding licensees. • Example: IP Value, ThinkFire, Pluritas Defensive Patent Pools, Funds and Alliances • Seek to selectively acquire portfolios of patents for defensive reasons. • Focus on one technology area or in one industry segment, and focus on “getting the patents off the street before the asserters get them”. • Joint licensing program by number of companies offering licenses to their patent portfolios crucial to the practice of a particular technology. • Example: Allied Security Trust, RPX and Open Invention Network 4 Licensing On-line Exchanges/Bulletin Boards • Offer web platforms and interfaces specialized for patent and other IP assets. • Essentially help in licensing, sale or transfer of technology using web medium. • Example: Novience, Tynax, IPXI, Yet2.com Corporate Licensing Arms • In-house IP department having licensing team focused on licensing IP • Example: AT&T Intellectual Property, Philips IPS 5 Licensing IP Developers • Engage in R&D activities and produce IP which is not used to manufacture products in the form of physical goods. • IP associated with the developed technology is licensed to other operating companies. • Provide consulting services to the licensee to integrate the technology into the product. • Example: InterDigital, Rambus, Tessera, InterTrust Technologies University Technology Transfer Agents • External agents that help University monetize its IP and generate licensing revenue. • Closely work with the inventors in marketing the technology. • Example: IP Shakti, Innovaro 6 Licensing University Technology Transfer Office • ‘Office of Technology Transfer’ that helps university monetize its IP and generate licensing revenue. • Closely work with the inventors in marketing the technology. • Example: MIT Technology Licensing Office 7 IP Revenue Models Licensing IP Revenue Models Litigation Sale 8 Sale Brokers • Mediate the transaction between buyers and sellers of IP. • Patent Broker generates earning by an agreed upon commission on the revenue generated from the sale or purchase of patent assets. • Example: Pluritas, Inflexion Point, Epicenter IP Group, Ocean Tomo IP Auction Houses • Hold live auctions for patents with the intent of providing a marketplace for facilitating the exchange of IP assets. • Revenue is generated by charging for listing fees, attendance fees, seller’s commissions etc. • Example: PatentAuction.com, IPAuctions.com, ICAP-Ocean Tomo 9 Sale IP-Driven M&A Advisors • Advise technology companies in their M&A activities and earning fees based on the deal value. • Provide services such as IP due diligence, IP valuation, consultation on the integration of IP assets and operations as a result of M&A activity. • Example: Ocean Tomo, and Pluritas IP-Backed Finance • Provide financing to IP owners in the form of loans (debt financing) • IP is kept as security till the loan is paid. • Example: Fortress, Paradox Capital 10 Sale Royalty Stream Securitization Firms • Provide capital on the basis of royalty based cash flow associated with an IP asset. • IP owner identifies a single or a pool of patents with reasonably predictable cash flows to be securitized. • The owner sells the asset itself or cash flow rights to a legally separate entity known as a Special Purpose Vehicle (SPV) to separate future receivables from its own corporate risks. • The SPV, with the help of legal and financial advisors, designs the securities to be sold • The SPV issues securities backed by the stream of patents’ royalties on capital markets. • Example: UCC Capital 11 IP Revenue Models Licensing IP Revenue Models Litigation Sale 12 Litigation Patent Licensing & Enforcement Companies (PLECs) • Non-practicing entities (NPEs) acquire patents and use them to generate revenue from operating companies by seeking licensing fees or asserting the patents in court. • Example: Acacia Research, Round Rock, Rockstar Consortium, Intellectual Ventures Privateers • Obtain patents from technology companies and then file infringement lawsuits against the sponsor’s competitors. • Sponsor companies use privateers to deflect their opponents or collect royalties on the patents without evoking retribution litigation. • Lack of transparency of ownership, as to who owns a patent or “real party in interest” in patents . 13 Litigation Litigation Financiers • Provide fund to cover or supplement the cost of patent litigation. • Provide cash advance to litigants in exchange for a percentage share of the judgment or settlement. • The borrower is not liable for any returns on investment, if the lawsuit is unsuccessful. • Example: Altitude Capital Partners, NW IP Fund, Greyhound IP 14 Litigation IP Insurance Carriers • Typical Intellectual Property Insurance covers a business for the legal costs of pursuing or defending patent infringement lawsuits or IP theft. • Some insurance schemes cover damages or financial losses due to IP litigations. • Example: RPX, Aon 15 THANK YOU 16