STATE OF AFFAIRS: THE GLOBAL IP MARKET
- 2019 Annual IP Market Data Preview
- Who’s Buying? Who’s Selling? And at What Price?
- Key Factors Impacting the Market
- Outlook for 2020 & Beyond: Still Cautiously Optimistic?
Ricky French: Championing Truth and Change in Midlothian
Global IP Market Quick Update on the Secondary Market for Patents
1. PATENT MARKET DATA • ACTIONABLE ANALYTICS (C) Richardson Oliver Insights LLC & Confidential 1
Global IP Market
Quick Update on the Secondary
Market for Patents
Kent Richardson
IP Dealmakers 2019
2. PATENT MARKET DATA • ACTIONABLE ANALYTICS
Deal Flow
(C) 2019 Richardson Oliver Insights LLC 2
Sellers
Buyers
Direct Sales
~1000 deals per year hit the market
3. PATENT MARKET DATA • ACTIONABLE ANALYTICS
$0
$5
$10
$15
$20
$25
$30
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cumulative sum of asking prices ($B) - brokered and private market
Cum Sum Asking Price (Entire Market) Cum Sum Total Asking Price (Sold) Predicted Cum Sum Asking Price (Entire Market) Predicted Cum Sum Total Asking Price (Sold)
$25B in Patents Offered on the Secondary Market
(C) 2019 Richardson Oliver Insights LLC 3
Unsold
Sold
Billions of dollars of unsold patents on the market.
Litigation risks continue to increase
$B
4. PATENT MARKET DATA • ACTIONABLE ANALYTICS
Quick Summary
°Sales $300 million, down from $353 million last year
°Asking prices rebounded to 2017 numbers
°Software sales continue to dominate, accounting for 52% of sales
°NPEs are buying a larger share of the brokered deals
°Litigation threats from sold packages continue to rise
(C) Richardson Oliver Insights LLC & Confidential 4
5. PATENT MARKET DATA • ACTIONABLE ANALYTICS
What’s the Average Asking Price for a Patent?
(C) Richardson Oliver Insights LLC & Confidential 5
$280,000
58% increase from 2018 but it’s complicated
Highest since 2014
6. PATENT MARKET DATA • ACTIONABLE ANALYTICS
What’s the New Average Asking Price?
(C) Richardson Oliver Insights LLC & Confidential 6
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
2012 2013 2014 2015 2016 2017 2018 2019
Average Asking Prices ($K)
Price per US Issued
Price per Asset
7. PATENT MARKET DATA • ACTIONABLE ANALYTICS
Challenge: Right Skewed Distribution – Long Tail of
PricingFrequency
Attorney-Client Privileged 7
Averages and medians are helpful,
but distributions matter
8. PATENT MARKET DATA • ACTIONABLE ANALYTICS
What’s Hot in the Market Today?
(C) Richardson Oliver Insights LLC & Confidential 8
9. PATENT MARKET DATA • ACTIONABLE ANALYTICS
Sellers Are Operating Companies Buyers are NPEs
(C) Richardson Oliver Insights LLC & Confidential 9
Corp Selling the Most – NPEs Buying Most
OpCos
NPEs
10. PATENT MARKET DATA • ACTIONABLE ANALYTICS (C) Richardson Oliver Insights LLC & Confidential 10
Get Access to Unique Analysis on Patent Transactions
Objective,RealData
ü Comparableclosingpricedataonover400
patenttransactionsworthmorethan
$500Mindealvalue
ü Dataupdatedevery6months
Depth
ü SEP,technologyarea,andclaimchart
pricinganalysisandmuchmore
AnalysisandPeerInsights
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ROI Real Prices Subscription
All data and content in this document is altered from the actual report. None of the data in this document is representative, and it is not suitable for making business decisions
11. PATENT MARKET DATA • ACTIONABLE ANALYTICS (C) Richardson Oliver Insights LLC & Confidential 11
What Participants Are Saying…
ROI's Real Prices is the most accurate information
we have found, and provides actionable
intelligence for our purchasing and licensing
Vice President IP, Public Technology Company
“
Seeing the analysis on more than 400 real
patent deals was insightful and validated
our buying approach. We look forward to
seeing more of this in the future!
Chief of IP, Late Stage Tech Startup
“ More transparency and availability of pricing
data will only help create a more rational
patent market. These types of initiatives are
essential to moving that needle
Head of Patent Acquisitions, Technology
Unicorn
“
As an IP focused company, we are really
impressed by the report from ROI. We use the
report to verify and refine our internal models
Michael Sobelman, Sr. Director, IP Licensing &
Business Development at Nagra/Kudelski
“ Unique analysis of real patent transactions.
Important and directly useful for our team
Head of IP, Fortune 500 Company
“
ROI's report fills an important information void
in the patent market. We're excited to be a
participant in this report, and encourage other
patent owners to consider participating
Senior Manager of IP Licensing, Fortune 500
Company
“
... an excellent source of aggregate third party
patent pricing information. Regular reports like
this would be enormously valuable to us
Head of Licensing and Patent Strategy,
Technology Company
“
1
The Real Prices report lets us directly
compare how we are doing and set new
goals
Head of IP, Fortune 500 Company
“
3
The ROI Real Prices report provides
independent pricing guidance to our sellers
and buyers, based on actual transaction data
Louis Carbonneau, CEO of Tangible IP
“
2
12. PATENT MARKET DATA • ACTIONABLE ANALYTICS
TABLE OF CONTENTS
§ Foreword
§ Overall Pricing – Studied Deals
§ Key Statistics – Studied Deals
§ Summary of Pricing Data
§ Pricing by Company
§ Typical Deals
§ Pricing Data by Year
§ Pricing by Deal Size
§ Asking Price to Sales Price Discount
§ Per Asset Pricing by Technology Area
§ EOU Impact – per Family Price Increase
§ SEP Impact – per Family Price Increase
§ Time to Close a Deal
§ Conclusion
§ Terminology, Methodology, Dataset Background
(C) Richardson Oliver Insights LLC & Confidential 12
Download the Full Sample Report at roipatents.com/RealPrices
All data and content in this document is altered from the actual report. None of the data in this document is representative, and it is not suitable for making business decisions
13. PATENT MARKET DATA • ACTIONABLE ANALYTICS (C) Richardson Oliver Insights LLC & Confidential 13
Panel Session
Greg Kisor
Global Head of Fund Management
Intellectual Ventures
Allen Lo
VP and Deputy GC, Head of IP
Facebook
Micky Minhas
Associate GC, Patent Strategy
Microsoft
Katharine Wolanyk
Managing Director
Burford Capital
Kent Richardson
CEO
Richardson Oliver Insights
14. PATENT MARKET DATA • ACTIONABLE ANALYTICS (C) Richardson Oliver Insights LLC & Confidential 14
15. PATENT MARKET DATA • ACTIONABLE ANALYTICS
Learning More – Further Resources
(C) Richardson Oliver Insights LLC & Confidential 15
°Richardson Oliver Insights
°New data-business, increasing patent market transparency
°Home page has updated market data
°roipatents.com
°Hosts reports and analysis on the market
°“The 2019 Brokered Patent Market” Richardson et. al. IAM Magazine (December 2019)
°“An Empirical Look at the ‘Brokered’ Market for Patents.” Love et. al. SSRN (October 2017)
°“Patent Purchases and Litigation Outcomes.” Lemley et. al. 2016 Patently-O Patent L.J. 15
(December 2016)
°roipatents.com/publications/