Much For Sale: Deutsche Telekom, Blackberry, Others' Large Portfolios Available
by: Tom Hochstatter, President
Here, early in Q4 we’ve seen increased energy by major global patent holder’s intent on selling, licensing or auctioning off large swaths of their patent portfolios. Blackberry is exploring a 38,000 patent transaction as news of that transaction has been pervading most of 2020. Deutsche Telekom has scheduled a December auction for its vehicle navigation patents. The DT Navigation Portfolio comprises 21 patent families with a total of 168 patents covering smart traffic and real-time navigation technology.
“We appreciate the upcoming online auction as a transparent and innovative platform for conducting this transaction. We want to address as many international companies as possible and are looking forward to an interesting, lively auction.”
We’ve seen more momentum among the brokers too. Tangible IP out of Seattle announced on November 9th a sale of a Vehicle to Vehicle Communication Portfolio, marking their move into double digit deal territory for the year and we’ve seen the likes of the LOT Network securing more and more members to the tune of 2.7 million assets within that program-notably IBM back in January. Other than the sheer volume of assets in motion, what energizes me and Techson is would-be buyers are finally doing more up-front validity due diligence.
We use our Limestone|Report AI-based research platform to deliver an immediate report on potential art that could cause a patent or portfolio buyer pause. Quickly coupling that with an expert researcher or two and you can race into a transaction with the utmost confidence.
The market for patent transactions is maturing on the well-worn path of other valuable assets and you must do your homework in advance. I can say from experience that in the (near) past I have been party to major patent transactions and have done little to no “due diligence”; we played the volume game: a) acquire a bunch of assets, b) assume they are all valid and valuable, c) likely pay a premium because we weren’t sure where the true value lies.
Smart money will continue to focus surgically on where value lies dormant. Inefficient deployment of capital has no room in today’s investment marketplaces. I’ve written a number of times this year on the influx of litigation financing funds that needs placement within the next 12 months. That coupled with so much inventory in flight and I think we can look to robust 2021 patent litigation volume based upon these portfolios and many others transacting here prior to the end of the year. Competition has a way of wringing inefficiencies and low performers right out of any market and fast.
In our own burgeoning IP transaction and brokerage practice we are aware of numerous other U.S-based and International firms intent to monetize large sections of their patents as soon as possible. We can assure you that those assets are being well-vetted in advance of any transactions. We hope to have some news on this front before year-end by the way…what are you seeing?
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