A growing concern: IP valuation, syndication and execution in Asia


A growing concern: IP valuation, syndication and execution in Asia

The first-ever multi-party patent transaction that shows the increasing sophistication of the Asian IP market closed last November with the purchase of a patent portfolio developed by Silicon Valley-based Phoenix Technologies.

Despite occasional claims by high-tech companies in Asia that they are ‘happy’ with their intellectual property settlements, they continue to get slammed by competitors and licensor threats. In Asia, survival is measured in margin against brutal competition, where the widespread practice of predatory licensing only adds to the irritation.

Historically, the Asia high-tech sector has had to endure a huge peak-to-trough gap in inbound to outbound licensing revenues. HTC’s recent settlement with Apple for an undisclosed ongoing royalty will undoubtedly disadvantage their bottom line. Samsung’s being ordered to pay $1.05 billion for infringing Apple patents is like an undisclosed balance-sheet liability. It is time for Asian high-tech firms to clear their collective throats, say: “Excuse me? You want to license me? That’s going to cost you,” and make it stick.

In late November 2012, Transpacific IP successfully purchased the Phoenix Technologies patent portfolio with the syndicated backing and investment of Asian high-tech operating companies. This article explores some of the intricacies of that transaction.

IP valuation, Transpacific IP, Phoenix Technologies, PCT