Case Studies

Monetizing Abandoned IP Assets: Semiconductor Industry

In this difficult economic environment, companies are looking even more closely at their product lines and BUs.

 
 

Unprofitable BU’s or non-core product lines are being aggressively wound down, and the associated IP (now stranded) is increasingly being looked at in efforts to extract any remaining value.

Recently, Red Chalk Group assisted a semiconductor client in identifying, categorizing, packaging, and selling a valuable portfolio of patents related to an abandoned consumer product business unit. After our client had liquidated the business unit’s remaining tangible assets, it asked Red Chalk Group to monetize the stranded IP.

The initial situation was challenging, but not uncommon:

  • Disorganized docket
  • Dated information
  • Few remaining engineers
  • Little technical or market information to support pricing analysis

Approach

Initially, Red Chalk Group worked with its client to organize its docket and identify any patents related to the former business unit. We tested our client’s internal records against publicly available information to triangulate in on the relevant price list. Next, we evaluated the portfolio seeking out strong patents that would drive a successful sale. Given the client’s limited remaining technical staff, we engaged independent technical experts to provided external perspective on the inventions and to help develop key evidence-of-use documents for our marketing and valuation efforts.

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With the patent portfolio identified and assessed, Red Chalk Group developed a robust list of over 100 potential purchasers including former competitors, companies in adjacent markets, and non-practicing entities (NPEs). We worked systematically with interested buyers to highlight the value of the portfolio and drive simultaneous bidding.

Client Impact

Despite an aggressive marketing timeline, an initially disorganized patent inventory, and a lack of internal technical expertise, Red Chalk Group leveraged its business, legal, and technical expertise to generate a large multi-million dollar sale from these otherwise stranded patent assets.

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