Strategic transactions

Background

Innovius and several of its key clients identified a portfolio originating from three major patent owners, which consisted of close to a thousand assets (granted patents and patent applications) in the Wi-Fi space. This was seen as a clear risk if it were to be sold to an aggressive non-practicing entity (NPE). Innovius acquired the rights to the portfolio and then licensed its core clients and more than a hundred additional licensees. These deals supported a fair and reasonable royalty rate for the Wi-Fi technology that clients used to their benefit, while also providing a solid ROI for original patent owners. After the licensing was concluded, Innovius sold the portfolio and generated additional revenue for the original patent owners. 

The goal

Patent owners wanted a return on their investment in the Wi-Fi segment, while licensees wanted to clear risk and establish fair and reasonable rates to support other negotiations 

Technologies involved

Patents declared essential to Wi-Fi standards.

Challenges

Managing the interests of several patent owners while also delivering value to licensees. It took many months of strategically negotiating and managing these interests to reach a set of terms including rates and scope of the license on which we could get agreement and begin signing licenses.

Solution

By finding the appropriate balance between the willingness of potential licensees to pay and reasonable fees that licensors could accept without the need for patent owners to resort to litigation

Outcome

Patent owners generated revenue in a space that they had previously found difficult to monetize.

Licensees received valuable comparable licenses in a space that Innovius correctly predicted would see an increase in risk of litigation and divestments.