A Patent Seller’s Prospective

October 24, 2007

Richard Baker, Director of Intellectual Property Licensing, 3Com

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Overview

› To successfully sell patents, one needs to:

― Pick the patents

― Select the Preferred Process

― Package the Product

― Promotion and Presentation

― Procure the Payment

Picking the Patents

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Fit into your corporate strategy

› Patent Sales must be determined in the context of the goals and missions of the overall corporation

― Strategic direction

― Policy

― Resources

› This is the crux of world class patent sales…being an integral part of your organizations goals and missions

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Find easy patents to sell

― Limited lot› Complex groups need different

selling venues

― Valuable, with infringement footprint

― Stand alone or with few components

― Few warts

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Be careful with key patents to your business

― Grant back critical

― Reserves

― Evaluate impact should your most hated competitor buy this patent

Preferred Process

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Why Sell your patents

›Revenue

› Limit Maintenance fee expenses

› Strategic partnership

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Techniques – Direct Sales

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Techniques - Brokers

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Techniques - Auctions

Packaging the Product

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Buyer’s concerns

›Recognize the buyers risk and need to limit/understand the risk

› Think about their unknowns― And try to allay their concerns

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Make it easy for the buyers

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Build trust

› The value of your trademark – can buyers trust you

› Set a high but reasonable reserve

› Meet with buyers – phone, in person, email, where ever needed

Promotion and Presentation

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Take every chance to sell your patent

› Booth at the Auction or Trade Shows to increase visibility

› Samples, brochures, trinkets, and Ribbon patent

›Give speeches

› Be visible and available

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Auctions

› Help the auctioneer to sell

― Meet the auctioneer’s deadlines, return their calls

― Catalog is very important

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Direct Sales

› Send out promotional materials

› Email promotional materials

›Call prospective buyers

› Follow up

› Be available to answer questions

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Brokers

›Help them sell

― Review and evaluate the patent

― Assist the broker in preparing materials and presentations

― Be available to answer questions

Procure Payment

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Close the deal

› Auctions – simple, the deal closes with the drop of the gavel

›Deals ― Evaluate offers in a reasonable timeframe

― Be flexible and creative in responding to offers

― Keep your “reserve” in mind but be open minded

― Terms and conditions› Never make an offer that you can not live with if accepted

› Leave closed issues closed

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Close the deal (continued)

› Sign the agreement as soon as possible

› Monitor for compliance

― Turn over materials when due

― Make sure payments are received

― Comply with all other terms

› Celebrate !!!

Questions