Envision IP provides price guidance to both buy and sell side parties in patent-based transactions. Our transaction pricing assessment involves both context-based valuation, as well as aligning a valuation range based on the current state of the patent-transaction market. Using current market factors, such as recent comparable transactions, and data from our network of brokers, we adjust a potential valuation to reflect a realistic sale price for both parties. Our price guidance provides parties with a starting point to begin negotiations and set the tone for the deal process, as well as a sensitivity range providing a ceiling (for a buyer) and a floor (for a seller) at which to anchor their negotiations.
We have a unique perspective to the patent transaction market, as we routinely provide support services to parties wishing to sell or acquire patent assets. By understanding the motivations of both patent owners and patent buyers, we adjust a fundamental valuation of a patent portfolio to more accurately reflect a reasonable sale price given current market conditions. We consider various factors, including comparable deal data, our own knowledge of the particular industry in which the patent assets reside, and existing licenses and encumbrances, in providing our patent transaction price guidance.
Transactions require IP due diligence. Envision IP works with clients to:
Understanding Patent Priority and Expiration Dates
A patent’s priority and expiration dates are important data points for determining the remaining term of a patent. An early priority date can indicate that a particular patent may be relatively fundamental to its industry. However, an early priority date also indicates a shorter remaining term of a patent. Envision IP provides a clear view of a patent portfolio's average priority date, average remaining term, taking into account any patent term adjustments or extensions.
Patent Ownership and Title
Confirming the true ownership of patent assets is integral to success. The absence of a transferable title by an alleged patent owner can prevent a proper assignment to a buyer. Envision IP reviews the USPTO maintenance record to confirm that patent assets are in good standing.
Third-Party Liens, Security Interests, and Encumbrances
Third-party liens and security interests may reduce the value of a patent portfolio, and can include financial institution interests to exclusive and non-exclusive license grants. It is especially important to determine any encumbrances which may prevent a buyer from bringing a claim on the patent portfolio against other parties.
Why Envision IP?
We have assisted both buy and sell side parties with many patent transaction matters. We have experience in drafting the appropriate asset transfer and assignment agreements, as well as with solving ownership record issues that might be identified prior to closing a transaction.