THIRD QUARTER 2015
THIRD QUARTER 2015
(Average Paid
Transaction
Month/Year Seller
Buyer
Technology
January
January
January
January
January
January
January
February
February
March
March
April
May
May
May
June
July
August
August
Interactive Systems
RPX Corporation
Silicon Image
Aviligon Corporation
IDEX
Tessera Advanced Tech
Volkswagen Group
[Broker]
Aviligon Corporation
[Broker]
Internet Patents
Finjan
Fortinet
Tessera Advanced Tech
IP Liquidity Ventures
Polaris Innovations
SITO Mobile
Tessera Technologies
Carbonite
Gaming
Telecomm
Wireless
Video Analytics
Software Algorithm
Semiconductor
Fuel Cell
Digital Surveillance
Video Analytics
Kenilworth Systems
Rockstar Consortium
Rambus
VideoIQ
Inventor
Semi Components Ind
Ballard Power Systems
Anonymous
[Four Sellers]
Anonymous
Prism Technologies
F-Secure
Meru Networks
Strategic Global Advisors
Bridgestone Americas
Infineon Technologies
Hipcricket
Ziptronix
Rebit
VoIP
Multiple
Internet
Cyber Security
Semiconductor
Tire Pressure
Multiple
Mobile Advertising
3D Stacking
File Encryption
Total Number of
Transaction
Patents
$1,100,000
$900,000,000
$2,280,000
$15,650,000
$2,155,932
$1,600,000
$39,000,000
$275,000
$13,400,000
$150,000
$20,066,666
$1,000,000
$3,734,635
$2,950,000
$10,000,000
$33,000,000
$1,850,000
$32,300,000
$700,000
3
2,565
14
34
4
9
60
3
48
1
48
2
33
26
43
4,000
26
48
6
Average:
Median:
per Patent)
Quotient
$366,667
$350,877
$162,857
$460,294
$538,983
$177,778
$650,000
$91,667
$279,167
$150,000
$418,056
$500,000
$113,171
$113,462
$232,558
$8,250
$71,154
$672,917
$116,667
$288,133
$232,558
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Patent Value Quotient: Third Quarter 2015
Patent Value Quotient - Third Quarter 2015
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Average Price Paid per Patent: $288,133
Median Price Paid per Patent: $232,558
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THIRD QUARTER 2015
Analysis: The Full Year 2014 Patent Value Quotient™ showed an Average Price Paid per Patent of $251,007 and a Median Price Paid per Patent of $123,444. The Third
Quarter 2015 Patent Value Quotient shows a modest increase in the Average Price Paid per Patent to $288,133, but a substantial increase in the Median Price Paid per
Patent to $232,558. The most significant change we see from 2014 is that there are far fewer patents selling at an Average Price that is less than $100,000. In 2014, we
reported 12 transactions in which the Average Price Paid per Patent was less than $100,000, but for the first nine months of 2015, we reported only three transactions in
which the Average Price Paid per Patent was under $100,000.
Purpose: The Patent Value Quotient is provided as a public service to businesses, universities, inventors and other innovators – as well as patent brokers, patent auctions
and IP professionals – to assist them in the sales and acquisition of U.S. Patents. The Patent Value Quotient is designed to be just one of many methodologies that is used
to value intellectual property by reporting recent patent transactions. We issue the Patent Value Quotient on a quarterly cumulative basis.
Methodology: The Patent Value Quotient reports on the average value (the quotient that is derived when the total transaction is divided by the number of issued U.S.
Patents) for recent patent transactions. We attempt to ascertain how many issued U.S. Patents were in the transaction, so there will be transactions that include foreign
patents and patent applications that are not assigned a value. When we have to compute the portion of the transaction that represents the value of the intellectual
property (for example, when a company or business unit is purchased for its intellectual assets, and the value of the IP has to be isolated from the value of the business
operations), we will provide an explanation of how we determined that value.
Sources: Transactions reported in the Patent Value Quotient come from publicly announced sales or acquisitions, and transactions reported to us by patent brokers,
patent auctions, parties to a transaction, and other sources. When requested to do so, we identify the Seller and/or Buyer as “Anonymous.” The raw data we find may be
supplemented by assignment records from the U.S. Patent and Trademark Office, SEC filings and other sources. We make every effort to report patent sales accurately. If
you find a discrepancy, please bring it to our attention at pvq@IPOfferings.com.
VideoIQ-Avigilon Transaction: Since Avigilon acquired an operating business, we valued the IP at half the value of the total purchase price.
IDEX Transaction: IDEX paid $28.3 Krona (or $3,233,897) for “patents and other IP,” so we valued the patents at two-thirds of the total purchase price
Prism-Internet Patents Transaction: Internet Patents acquired an operating business with substantial licensing revenue, so we valued Prism's patents at one-third the
purchase price.
Meru-Fortinet Transaction: Fortinet acquired Meru Networks for a $3,734,635 premium over its stock valuation, so we used that number as the value of the company's IP
assets.
Hipcricket-SITO Transaction: SITO acquired an operating business, so we valued Hipcricket's patents at half the value of the purchase price.
Ziptronix-Tessera Transaction: Tessera acquired Ziptronics for $39 million, but in its SEC filings, Tessera valued Ziptronix's patents at $32,300,000.
Rebit-Carbonite Transaction: Carbonite acquired Rebit for $1million, but in its SEC filings, Carbonite valued Rebit's patents at $700,000.
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Feedback: We welcome input from the IP community regarding the data we collect and report. Please contact us at pvq@IPOfferings.com.
Cash, Notes and Stock: Some patent acquisitions are made with a combination of cash and/or notes and/or stock. When that is the case, we value the note at its face
value, and we compute the stock portion of the transaction based on the closing price of the company stock on the date of the transaction.
Questions and Comments: Please direct all inquiries and all transaction data to pvq@IPOfferings.com.
Patent Value Quotient is a trademark of IPOfferings LLC. © 2015
IPOfferings LLC ♦ 75 Montebello Road, Suffern, New York 10901-3746 ♦ 561-948-0672 ♦ www.IPOfferings.com ♦ pvq@IPOfferings.com
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