ip backed financing
TRANSCRIPT
IP BACKED FINANCING
Top Companies – raising Financing (by no. of applications)
General Motors 15,866
12,946 Avago Technologies
10,023 Alcatel Lucent
8,438 Kodak
8,149 Freescale
5,910 Seagate
4,609 Dell
3,162 Avaya
2,914 Chrysler
2,313 Ps4 Luxco
Top Financing Entities (by no. of applications)
Major Industries - raising Financing (by no. of applications)
Financing Entities vs Companies (Transactions) Trends
Banks vs Transacted Technologies
1. Kodak (5,329) 2. Seagate (5,243) 3. Chrysler (2,548)
1. Kodak (5,329) 2. Dell (4,603) 3. Scient Games Int (2,242)
1. Freescale (8,156) 2. General Motors (7,465) 3. Kodak (7,762)
1. Avago (12,955) 2. Unisys (1,807) 3. Ciena (1,569)
1. Alcatel Lucent (10,026) 2. Carestream (1,011) 3. Novell (559)
1. Avaya (3,096) 2. Dell (4,464) 3. Momentive (1,300)
1. Seagate (5,486) 2. Spectrum Brands (1,169) 3. Quantum Corp (657)
1. General Motors (14,731) 2. Kodak (5,917) 3. Optis Wireless Tech. (636)
1. Unisys (1,583) 2. Affymetrix Inc. (604) 3. Heritage Home Group (389)
1. General Motors (9,709) 2. Chrysler (2,540)
Transportation Data Storage Digital Data Processing
Digital Communication
IT Methods for Management
Television & Video Transmission
Mechanical Elements
Medical Devices
Tele - communications Semiconductors
4,898 4,778 3,770 2,340 2,324 2,176 2,171 1,877 1,866 1,331
Industry
No. of Applications
6,650 4,075 2,750 2,586 2,152 1,826 1,727 1,421 1,407 1,318
Digital Data Processing
Digital Communication
Checking Devices
Industry
No. of Applications
IT Methods for Management Printing
Containers & Packagers
Television & Video Transmission Polymers
Mechanical Elements Gaming
1. Avago (3,310) 2. Dell (2,819) 3. Freescale (1,611)
1. Alcatel Lucent (5,800) 2. Avago (1,649) 3. Avaya (1,448)
1. Endo Pharmaceutical (576) 2. Hologic (444) 3. Masimo Corp (366)
1. Freescale (2,975) 2. Avago (2,532) 3. Ps4 Luxco (1,064)
1. General Motors (6,108) 2. Chrysler (1,245) 3. Lear (887)
1. First Data Corp (536) 2. AOL (361) 3. Alcatel Lucent (331)
1. Seagate (4,750) 2. Avago (1,334) 3. Ps4 Luxco (1,213)
1. Alcatel Lucent (1,743) 2. Avaya (1,377) 3. Aspect Software (415)
1. General Motors (3,324) 2. Chrysler (450) 3. Federal Mogul Corp (361)
Sources: http://www.ipos.gov.sg/IPforYou/IPforBusinesses/IPFinancingScheme.aspx http://www.srr.com/article/financing-alternatives-companies-using-intellectual-property-collateral http://www.asiaiplaw.com/article/41/1817/ http://www.ipo.org/wp-content/uploads/2013/04/Securitisation_of_IP_in_the_US.pdf http://www.patent-innovations.com/documents/201306LimitedMonopoly-PatentsasCollateral.pdf http://patent-lawyers.usattorneys.com/alcatellucent-patent-monetization-program-microsoft-sues-samsung-patent-royalty-war/ http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2356015 http://www.wpto.com.tw/en/news-detail.php?nid=746 http://www.worldipreview.com/article/new-focus-on-ip-valuation-in-2013 http://www.kimchang.com/newsletter/templates/newsletter_ip_en_summerFall2013_article08.html http://business.asiaone.com/news/intellectual-property-collateral-companies http://amsacta.unibo.it/2705/1/Munari_Odasso_Toschi_EE_Chapter.pdf http://www.oecd-ilibrary.org/science-and-technology/valuation-and-exploitation-of-intellectual-property_307034817055 http://www.iam-media.com/blog/Detail.aspx?g=7d2e49be-4f84-461a-939e-2fb73664db2a http://www.iam-media.com/blog/Detail.aspx?g=481b76b6-637f-427f-b8d6-78d06cece504 https://www.relecura.com/reports/IP_Backed_Financing.pdf https://www.iconfinder.com/
Disclaimer: This infographic, including the information and analysis and any opinion or recommendation, is neither legal advice nor intended for investment purposes. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. INDUS TechInnovations specifically disclaims any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. Copyright © 2015 Relecura Inc. All rights reserved.
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The data represented holds patent assignments for a 6 year period (2009-14) portraying the patent transaction records by entities employing intangible assets as a route to raise debt financing.
208 123 27 26 23 19 17 16
4,438 3,332 3,227 2,914 2,273 2,183 1,957 1,342 1,301 1,220 No. of
Applications
Transportation
Digital Data Processing Semiconductors
Mechanical Elements
Engines, Pumps & Turbines Printing
Television & Video Transmission Polymers
Digital Communication Green Technology Industry
185 79 43 37 20
15 22
JP Morgan Chase
Bank of America
Citigroup
No. of High Quality Patent Applications
Organization
No. of High Quality Patent Applications
Assignors
0
5,000
10,000
15,000
20,000
1 2 3 4 5 6
JP Morgan Chase 9,334 4,762 6,421 5,453 10,898 9,498
Bank of America 5,042 5,117 4,482 4,080 19,737 8,674
Citigroup 9,380 6,485 2,896 9,829 3,331 2,410
Execution Year Trends
2011 2010 2009 2014 2013 2012
0
500
1000
1500
2000
2500
3000
3500
Filing Year Trends
JP Morgan Chase Bank of America Citigroup Some of the patents held as collateral were filed in the 1980s and 1990s.
Patent Assignment Execution Trend
2009 2010 2011 2012 2013 2014
43,490
53,911
43,236 45,173
71,147 66,918 The execution trend is
based on 896,254 transactions comprising of
333,577 applications*. *An application refers to a set of patent transactions with the same application
number, representing a single application.
6 6 3 2 2
No. of High Quality Patent Applications
Organization
164 103 102 45 45 27 27 22 18 16
46,897 34,658 32,716 31,369 27,172 18,758 16,142 12,774 48,804 12,212
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1. Kodak (1,820) 2. Rovi Corp (1,373) 3. Arris Group (535)
Year Country Government / Bank Scheme / Purpose Offerings
1995 Japan Development Bank of Japan
Loans to companies in middle development
stage
16 billion Yen for 260 IP backed loans (in a
decade)
2010 China State Intellectual Property Office
IPR Pledge Financing Program(started in 2008)
25 billion Yuan for 2000 projects
2013 Malaysia Government IPR Financing Fund Scheme
RM200 million (US$65 million)
2013 Korea Korea Development Bank
Loan programs by pledging IPR as collateral
2 billion Korean Won (about US$1.8
million)
2014 Singapore Government IP 101 (loans using IP as collateral)
$100 million
2014 China China Development Bank
Loan to Quanlin paper against a portfolio of
trademark and patent rights
RMB7.9 million (approx. $1.3 billion) against a portfolio of 110 patents and 34
trademarks
N/A Germany Landesbank Rheinland-Pfalz
Financing of development projects of
mid-size companies (technical
documentation of research projects as
collateral)
40 transactions for EUR140 million (in a
4 year period)
IP Financing Schemes
Company Financial Entity Loan Raised (Patents)
GIK Worldwide Pitney Bowes Capital US$57 million
Eastman Kodak Citicorp North America, Inc. US$950 million (7766 patents)
Insite Vision Bank of New York US$6 million (32 pharma patents)
Cambridge Display Technologies
Lloyds TSB US$15 million
Alcatel Lucent Goldman Sachs & Credit Suisse
US$2.1 billion
started company
The General Electric Company
Thomas Alva Edison
in 1880’s
Incandescent Electric Light Bulb Patent
as collateral
Secure Financing
Other Instances
IP Financing Process
IP Backed Loan Cases
IP Asset (R&D &
Technology Sector)
Financial Entities (Bank, Venture
Capitalist, Company
Financing Arm)
Valuation (Cost Based,
Market Based, Income Based)
Formal Application (To Financial
Entities)
IP Backed Financing
(Loans, Securitization, Sale
& License Back )
IP as a collateral can be defined as “a borrower’s pledge of specific property, such as future Cash Flows from existing IP assets, or rights to the underlying IP itself, in order
to provide recourse for the lender in the event of loan default”.
The First Instance