A Patent Seller’s Prospective October 24, 2007 Richard Baker, Director of Intellectual Property Licensing, 3Com

2 Overview › To successfully sell patents, one needs to: ― Pick the patents ― Select the Preferred Process ― Package the Product ― Promotion and Presentation ― Procure the Payment

Picking the Patents

4 Fit into your corporate strategy › Patent Sales must be determined in the context of the goals and missions of the overall corporation ― Strategic direction ― Policy ― Resources › This is the crux of world class patent sales…being an integral part of your organizations goals and missions

5 Find easy patents to sell ― Limited lot › Complex groups need different selling venues ― Valuable, with infringement footprint ― Stand alone or with few components ― Few warts

6 Be careful with key patents to your business ― Grant back critical ― Reserves ― Evaluate impact should your most hated competitor buy this patent

Preferred Process

8 Why Sell your patents › Revenue › Limit Maintenance fee expenses › Strategic partnership

9 Techniques – Direct Sales

10 Techniques - Brokers

11 Techniques - Auctions

Packaging the Product

13 Buyer’s concerns › Recognize the buyers risk and need to limit/understand the risk › Think about their unknowns ― And try to allay their concerns

14 Make it easy for the buyers

15 Build trust › The value of your trademark – can buyers trust you › Set a high but reasonable reserve › Meet with buyers – phone, in person, , where ever needed

Promotion and Presentation

17 Take every chance to sell your patent › Booth at the Auction or Trade Shows to increase visibility › Samples, brochures, trinkets, and Ribbon patent › Give speeches › Be visible and available

18 Auctions › Help the auctioneer to sell ― Meet the auctioneer’s deadlines, return their calls ― Catalog is very important

19 Direct Sales › Send out promotional materials › promotional materials › Call prospective buyers › Follow up › Be available to answer questions

20 Brokers › Help them sell ― Review and evaluate the patent ― Assist the broker in preparing materials and presentations ― Be available to answer questions

Procure Payment

22 Close the deal › Auctions – simple, the deal closes with the drop of the gavel › Deals ― Evaluate offers in a reasonable timeframe ― Be flexible and creative in responding to offers ― Keep your “reserve” in mind but be open minded ― Terms and conditions › Never make an offer that you can not live with if accepted › Leave closed issues closed

23 Close the deal (continued) › Sign the agreement as soon as possible › Monitor for compliance ― Turn over materials when due ― Make sure payments are received ― Comply with all other terms › Celebrate !!!

Questions