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Cross Licensing

Finding balance in an era of disruptive technologies

With the proliferation of patents, licensing is increasingly used to resolve issues between conflicting and competing patent owners. Cipher helps calculate what can be considered as fair for companies that seek rational and balanced outcomes.

It’s become feasible to maintain a dynamic analysis that’s constantly keeping you apprised of the total number of worldwide patents in a particular technology space, relative to your own portfolio.

Jeremiah Chan, Head of Patents, Facebook

If these are your questions…

How can I justify what represents a fair licensing deal?

Whether planning internally or negotiating, evidence trumps ‘gut feel’ every time. The Cipher Optimisation Model enables you to map your patents to the revenue of others, and similarly their patents to your revenue. This identifies where there is imbalance and a means to calculate the overall position.

What is our exposure to counter-assertion?

Where your strategy is to monetise your patents by licensing, it is vital to consider both the approach and the consequences. Cipher can identify companies who are exposed, and also help ‘war game’ the outcome of a cross-licence, in situations where the other party owns patent assets that map to your revenue.

What’s the best way of countering a demand for a portfolio licence?

It has become common practice for large, often failing companies, to take a blunderbuss approach to licensing. Such approaches are accompanied by a demand that you take a licence of their whole (and typically large) portfolio. Cipher enables rapid and effective whittling to patented technologies of relevance – normally a significantly smaller list.

…then Cipher can help.

How Cipher can model cross licensing

1

Define cross-licensing strategy

Define cross- licensing outcomes, such as threat neutralisation, monetisation and quantify impact on patent risk.

2

Build “balance of trade” model

Having identified potential licensing partners, model the likely financial outcomes.

3

Actionable Intelligence

Seek internal consensus, implement an evidence-based approach to negotiation, and justify outcomes.

Because Cipher is an automated platform that uses machine learning and artificial intelligence, it is able to uncover companies of relevance, that we might never have discovered on our own.

Jared Engstrom, Head of Patent Development, Red Hat

Allied Security Trust (AST)

AST provides to some of the world’s most innovative technology companies with patent risk mitigation services, including patent acquisition, and is an industry forum for IP leaders. In 2018, Cipher launched Cipher n/d Powered by AST, thereby incorporating the AST Product taxonomy into Cipher as an Industry Module to support cross-licensing negotiations.

We are always looking for innovative ways to make the patent markets more transparent and efficient and we believe that Cipher n/d is an important step towards a more comprehensive and standardized visualization of the patent landscape for the entire industry.
Russell W. Binns, CEO, AST

Find out more

Data science and machine learning helps us better manage and shape our portfolio.  The ML tools and models we’ve built have enabled us to operate more efficiently and at scale so that we can execute on our patent strategy.

Mike Lee, Director, Head of Patents, Google

Insights & Events

Beyond portfolio optimisation – calculating the value of rightsizing

View our webinar discussing results of the Cipher Report on Portfolio Optimisation and the optimisation model that can help you balance your portfolio.
Read more

How Many Patents Are Enough?

Are you looking to optimise your patent portfolio but aren’t sure where to start?
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Case Studies

ARM on classifiers and managing patent budgets

Rob Calico, VP Litigation and IP, discusses the challenges of managing a sophisticated portfolio in a fast-moving technology environment, and how Cipher has helped them manage their patenting strategy and budgets.
Read more

Cross Licensing FAQs

Can the “balance of trade” approach be used for other strategic patent decisions?

Yes. The same methodology is used to support monetisation (both patent sales and licensing), patent acquisitions and Portfolio Optimisation. Find out more – AI in evidence based strategic IP decisions and How Many Patents are Enough?

Why should a counter-party trust Cipher patent intelligence?

The reality is that a manual review of thousands of patents is impractical from a time and cost perspective. When relying on data generated from Cipher classifiers, you will have confidence in the results, which can be freely shared. This level of transparency is disarming.

Does this replace ‘pick lists’ and ‘claims charts’?

Not necessarily. While market practice is changing, some organisations combine financial models with conventional approaches including identification of small sets of patents (pick lists) that can be evidenced to be valid and infringed by the counterparty (claims charts). Relying on subsets of a portfolio to establish the quality of the entire portfolio is increasingly disregarded.

With Cipher you can also…

Optimise your portfolio

Ensure you have the right portfolio to meet your strategic patenting objectives.

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Gather competitor intelligence

Understand who’s doing what by automating patent to technology mapping.

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Manage your budgets

Justify patent budgets to CFOs and others to communicate the impact of your investment.

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Conduct due diligence

Automate manual reviews for efficient execution of M&A and licensing transactions.

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Tackle inbound patent assertion

Be prepared with evidence to create a fast and effective threat assessment.

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Benchmark your portfolio

Assess your portfolio in comparison to other owners through your own technology lens.

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Monetise your portfolio

Identify opportunities to create value through licensing or sale of patent assets.

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Why Cipher

Trained by humans, built by machine to give you independently verified accuracy

“Cipher’s classifiers enable you to understand the patent landscape or analyze a portfolio. Combining expertise in both IP and data science, Cipher provides you with solutions to the strategic problems patent owners face, with quick and accurate results.” Erik Oliver, Richardson Oliver Insights

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Improve your patent strategy now

Speak to one of our Cipher team today.