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Patent Monetisation

Creating value from licensing or sale of patents.

 

Over $500 billion each year is generated from the licensing and sale of patents, but there remain huge market inefficiencies in understanding and realising the value of patents. Cipher helps identify opportunities and provides the intelligence that is critical to deliver evidence-based valuations.

 

The big win is going from understanding the relevant landscape of just a handful of companies, to the whole world – that’s what has excited me and that’s what’s excited our clients, when we use Cipher.

Erik Oliver, COO, Richardson Oliver Insights LLC

Have you ever asked these questions?

What’s the size of the prize?

What is the anticipated revenue from licensing (or sale) measured against cost to the company of sharing (or divesting) of patent rights with a third party? This requires calculation and permutations around the opportunity cost, where Cipher can enable a rational and objective assessment of outcomes.

How do I rally support for monetisation?

The starting point is understanding whether this aligns to your IP and business strategy, then articulating which assets and why. Cipher helps owners focus on areas that have the least cost to you and the greatest benefit to ensure a sale.

What are the key challenges to execution?

It is often challenging to reach internal consensus; which assets, how, to who and at what price? Cipher helps companies identify assets, focus on potential licensees (or purchaser) and model a range of financial scenarios.

If these are your issues, Cipher can help you.

How to use Cipher to support patent monetisation

1

Define monetisation strategy

Establish consensus internally around the potential for patent licensing and/or sale

2

Identify patent assets and counter-parties

Using Cipher patent to technology mapping, focus on specific patented technologies and potential licensees or buyers

3

Model monetisation outcomes

Estimate the range of financial outcomes, using revenue data and Cipher data in the Cipher Optimisation Model

4

Analyse and Recommend a Strategy

Refine and execute on monetisation strategy, reassessing overtime

Frequently asked questions

Is Cipher available for individual projects?

Yes. While the Cipher platform is provided on a subscription basis, for specific transactions Cipher provides per project pricing that includes delivery of the Cipher Due Diligence Report and access to the underlying data in the Cipher platform for the duration of the deal.

Do we need a sophisticated understanding of machine learning or analytics?

No. The fact that technology is improving all aspects of our lives does not require you to understand how technology works, just to trust that it does. Cipher was founded in 2013 and is trusted by major patent owners across all technology sectors. Our due diligence solution for law firms is fully supported so that lawyers entirely new to Cipher can immediately access the insights required for the task at hand.

Are we liable for inaccuracies in Cipher data?

Cipher is the market leader for the automated mapping of patents to technologies. It is well understood that patent analysis is only as good as the underlying patent data from national Patent Offices – which is not perfect. Patent owners are aware of this and standard disclaimers can handle the residual risk of relying on third party data sources.

Do Cipher due diligence reports rely on classification or clustering?

Both. The Cipher platform was originally developed for instant analysis of a company and its competitors. This was based on unsupervised machine learning (clustering).

More recently, Cipher launched its Universal Technology Taxonomy which is a structured taxonomy for all patented technologies. This uses supervised ML (classification). Cipher will recommend the optimum approach for your matter based in your objectives, budget and timescales.

How long do Cipher Due Diligence reports take to produce?

While this depends on the scope and scale of the project, one thing is always true. Cipher is quicker than humans!

Cipher reviews 61 million patents an hour. Most humans can get through about five an hour.

Typical service level agreements (SLAs) for Due Diligence Reports are three days. Law firms with a subscription to the platform say that preliminary reports can be produced in less than one hour.

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Monetisation

Can the same approach be used for buying and selling patents?

It is essential to calculate the benefit of acquiring patents alongside cost. Typically, this will include elimination of threats or mitigation of patent risk. Strategic Patent Intelligence Models enable the value proposition to be articulated – to find out more look at  AI for evidence-based decision making and How many patents are enough?

Should every company consider patent monetisation?

Patent monetisation is mainstream but not appropriate for all companies. The recent Cipher Optimisation Report suggested that for the majority of companies, the primary objective is to neutralise threats, putting monetisation outside patent strategy. However, what is a core asset changes all the time, and it is important to keep the position under review.

Why do economic models help with monetisation?

Modelling helps you crystallise both the knowns and unknowns. Cipher helps identify how your patented technologies fit into the wider patent landscape, enabling an objective assessment of whether your assets are foundational or just another drop in the ocean.

With Cipher you can also…

Competitive Intelligence

Gather competitor intelligence

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

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Cross Licensing

Model cross licensing

Combine patent and revenue data to determine rational licensing outcomes.

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patents budget management

Manage your budget

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

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Portfolio Optimisation connecting cogs

Optimise your Portfolio

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

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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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Technology Trends icon

Predict technology trends

Track new technologies of today and discover the unknown owners of future disruptive innovation.

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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

Why Cipher

Improve your patent strategy now

Speak to the Cipher team today.

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