Client Stories: How To Make A Successful Portfolio Acquisition Strategy
Recently, one of our regular clients approached Sagacious IP with a project involving portfolio acquisition. The client is a tech company based in San Jose, California, mainly involved in licensing IP in the consumer electronics industry. The company offered entertainment leaders around the world with IP licensing, so they can build next-generation solutions without starting from scratch.
The company also generated revenue primarily from patent licensing. Its portfolio includes thousands of patents in the interactive program guide category as well as content discovery, OTT, advertising, DVR, time-shifting, mobile and beyond.
The tech company was earlier involved in active discussions with potential investors in each of its consumer and IP sectors, but the overall strategic review process that started a year ago took longer than expected.
Let us deep dive into how we helped the client prepare to split their company into two businesses: one that focused on products, and the other on licensing and IP businesses for a successful portfolio acquisition.
Various Spectrums Of Client Story For Portfolio Acquisition Strategy
The Challenges Of Portfolio Acquisition Strategy
- The company needed assistance in planning to split their company into two businesses: one based on their products, and the other on their licensing and IP business. This was done to help address complexities between the two businesses to make it more attractive to buyers.
- Client was also looking for portfolio reviews to make informed decisions when new portfolios came up for acquisition. The portfolios mainly pertained to technologies of interest for video service providers.
- The review had to be performed with an eye on future declaration and licensing practices, reasonably broad claims, patents covering the broader spectrum of video service technologies, existing licensing agreements, etc.
- Before carrying out a detailed analysis, a good first-pass analysis was needed to determine the quality of the portfolio.
Given the challenges, Sagacious IP’s licensing team delivered agile and flexible solutions. Based on years of research experience with several global companies, we knew that the most important aspect driving a portfolio acquisition is the right strategy and thorough technical research.
In order to review portfolios, Sagacious IP formed an internal team to scan and provide quality indicators for the variety of claims, ease of evidence identification, current and future applicability to video service providers.
Our team also generated claim charts for high-quality patents for portfolios that passed the first pass test.
Finally, the reports generated were accurate, detailed and understandable, so that the client could make an informed decision whether they would like to continue with the acquisition or not.
Based on the success of a pilot study and efficiency of our team’s capabilities, the client signed an agreement with Sagacious IP for a year. We screened 7 portfolios with an average of 100 patents in each sector within 6 months of engagement.
We generated successful and effective claim charts against a specific target company for two of the portfolios that helped client determine portfolio quality and thus proceed with the acquisition that helped client re-negotiate established licensing agreements with the target company.
The client also appreciated our model of quickly screening through the portfolio and having a quick opinion on whether to go ahead with acquisition.
From the patent monetization to portfolio acquisitions, we partner with our clients to transform their innovations in the ways that matter most to them. Reach out to us to know more.
– Abhinav Mahajan and The Editorial Team