The Very First Industry Patent Purchase Program

 

Calling all patent owners – some of the world’s largest companies including Google, Apple, IBM, Microsoft, Facebook, Adobe, Oracle, SAP, Ford, Honda, Hyundai, Kia Motors, Verizon, Cisco and Arris want to buy your patents!

IP3 is a marketplace that offers patent owners a quick and easy way to access the secondary market and receive fair value for their patents.

For a two-week period, patent owners with great patents can submit their patents for consideration by leading multinational companies representing more than $2.5 trillion in combined enterprise value.

Starting May 25, 2016, through June 10, 2016, patent owners can submit their patents to the IP3 portal at a price they set. AST will then review the submissions, and if one or more of the participating companies are interested in funding the purchase, submitters will be notified by July 29, 2016.

Participants in IP3 include a wide array of industries including enterprise software, automotive companies, cable providers, networking communications equipment, semiconductor manufacturing, information technology and location-based services.

IP3 builds on the innovative approach taken by Google with their successful 2015 Patent Purchase Promotion (PPP), offering patent owners access to a well-funded buying consortium with no haggling. We created IP3 to try an innovative way to simplify patent owners’ access to the secondary market by eliminating the common hassles associated with it – like the need to prepare claim charts.

In short, patent sellers need to only identify the patent family and price at which they are willing to transact, IP3 does the rest!

 

Window for submitting to IP3 has closed

 

Patent holders looking to submit their patents for consideration are limited to one patent family per submission. Families submitted must have at least one U.S. family member; if a family contains more than one U.S. patent, the submitter must identify a primary patent upon which we should base our analysis. All submissions will be reviewed and submitters will be notified of their patent’s status by July 29, 2016.

All assets not purchased during the IP3 program will be considered by AST’s 30 leading high- tech Members for potential purchase in the normal course of AST’s asset purchase review process.  By submitting to the IP3 program, you are also offering your assets to AST for potential purchase.

If you would like to submit your patent to the IP3 portal please visit the IP3 Patent Submission Form [pdf]. AST strongly encourages all sellers to speak with an attorney before submitting their patents for consideration by IP3. Please read the Terms and Conditions[pdf] carefully before submission.

Buying Categories include:

+ Computers & Software

Computing systems such as Desktop, Laptop, Tablet, Servers, Computer Housing and Enclosures, Computer Peripherals, Input Devices, Motherboards, Video Cards and PC Components, etc.

Cloud Computing including Backend Applications, Business Processes, Infrastructure, User Applications, Location-based Services, etc.

Infrastructure Software, including Application Deployment, Application Development, Communication Software, Database Management, Graphics & Video Processing, Industrial Software, Information Access and Delivery, Network Management, Operating Systems & Subsystems, Security, Server Software, Storage Software, System Management, User Interface and Other Infrastructure Software.

Application Software, including Authoring and Publishing Software, Business Applications, Collaborative Applications, Content Management, Engineering and Scientific Software, Search and Data Mining, Video Games and Other Application Software.

+ Consumer Electronics

TVs, Displays, Mobile Phones/Tablets/Digital Cameras, Audio & Video Equipment including Set top boxes, Music Players; Home Networking equipments including Modems, Wireless Access Points, etc; GPS, Smart home devices, home security, household appliances; etc.

+ Communications

Communication Equipment, optical communication, wireless communication, network management technologies and devices, etc.

Cable and Satellite Service Providers, broadband, voice and content delivery services, video streaming, web and video advertising, VOIP, advanced user interfaces.

+ Semiconductor & Components

Semiconductor devices, Manufacturing Processes and Materials including MPUs, MCUs, Memory, ACISs, logic circuits, Sensors, etc. Mechanical, Optical, Electronics and Electrical components etc

+ Healthcare/Medical

Medical devices, Healthcare IT, Consumer health devices, Ambulatory Healthcare, Hospitals & Nursing Homes; Research & Manufacturing of Medicines and Medical Instruments

+ Automotives

Automotive products/parts manufacturing, Passenger and Freight Transportation and Support Activities for Transportation

+ Lighting

Lighting Devices or Systems, Functional Structural details of Lighting devices, LED, CFL, Incandescent, and other lighting technologies

+ Financial Services

Payments, Transaction Processing, Trading, Insurance, Bank & Mortgages, Accounting, Financial Mobile & Web Applications

If IP3 decides to buy your patent, please review the patent purchase agreement [pdf].

For patent sellers looking to sell all of their families as a group or if you have missed the IP3 deadline, you may still submit your patent for purchase by AST by visiting our portal

Note that all submissions to this link will not be subject to the IP3 program, and may not include the same buyers.  You should review the terms and conditions associated with such submissions carefully on the AST website.

If you have more questions:

Please read our FAQ[pdf] if you have more questions about IP3 and the submission process.

For more details on the timeline and process please review the IP3 Additional Information document [pdf].

 
 
 

Since 2007, AST has offered patent sellers a confidential, proven process for patent sales, ensuring that top decision-makers at our Member companies see your portfolios – free of charge to sellers – via our proprietary fAST IP database. We are an independent, not-for-profit cooperative with 30 Member companies who are among the leading technology companies in the world. AST provides our Members with a proactive patent defense approach and proven method for analyzing patent purchase opportunities. For more information about AST please visit our portal at www.ast.com.

 
 

+ What is IP3?

IP3 is an innovative Industry Patent Purchase Program launched by AST with the participation of some of the world’s biggest companies including Google, IBM, Microsoft, Adobe, Oracle, SAP, Ford, Honda, Hyundai, Kia Motors, Verizon, Cisco, and Arris, that offers patent owners a quick and easy way to access the secondary market and receive fair value for their patents. For a two-week period, patent owners with great patents can submit their patents for consideration by leading multinational companies representing more than $2.5 trillion in combined enterprise value.

Starting May 25, 2016 through June 10, 2016, patent owners can submit their patents to the IP3 marketplace portal at a price they set. The submissions will then be reviewed, and if there is interest in buying, submitters will be notified by July 29, 2016.

+ Why are AST and the participating companies doing this?

AST partnered with some of the world’s biggest companies to create IP3 in order to streamline the patent submission and acquisition process for sellers and operating companies in hopes to reduce time and complexity often associated with patent transactions. IP3 is AST’s effort to simplify sellers’ access to the secondary market by eliminating common hassles such as the need to prepare claim charts. In short, with IP3, sellers need only identify the patent family and price at which they are willing to transact, IP3 does the rest.

+ How is IP3 different than Google’s Patent Purchase Program?

IP3 builds on the success of Google’s 2015 Patent Purchase Promotion, but includes 18 companies with over $2.5 trillion of market capitalization, which offers patent sellers the ability to sell patents across a wide array of industries including enterprise software, communications, networking, semiconductors, automotive, content delivery, cloud computing and others with no haggling.

IP3 also expands the program from a single US patent purchase to the purchase of an entire patent family including all related applications, provisionals, and foreign counterparts.

+ What companies/industries are participating in IP3?

Leading multinational companies including Google, IBM, Microsoft, Adobe, Oracle, SAP, Ford, Honda, Hyundai, Kia Motors, Verizon, Cisco, and Arris are among the 18 companies participating in IP3 across a wide array of industries including enterprise software, automotive companies, cable providers, networking communications equipment, semiconductor manufacturing, information technology and location-based services.

+ Who can make a submission to IP3?

If you are a US patent owner or have a legal right from the US patent owner to sell the patent, you can make a submission to IP3. We are only able to pay entities that have a US Tax ID number. US companies and individuals with a U.S. social security number will be required to supply a W-9, foreign companies will be required to provide a W-8BEN-E, and foreign individuals will need to supply a US tax Id number or a W-8BEN.

+ What are the submission guidelines?

IP3 is open for patent submissions starting May 25, 2016 through June 10, 2016. Patent holders looking to submit their patents for consideration are limited to one patent family per submission. Families submitted must have at least one US family member; if a family contains more than one US patent, the submitter must identify a primary patent upon which we should base our analysis, and include all of the assets in the family.

All submissions will be reviewed and sellers will be notified of their patent status by July 29, 2016.

+ Are there buying categories?

Yes, buying categories include computer systems, consumer electronics, cloud computing, infrastructure software, application software, communication equipment, communication/content delivery systems, wireless, semiconductor, components, healthcare/medical, automotive, lighting and financial services.

+ Can I/How do I submit more than one patent family?

While we only accept one patent family per submission, you are free to make multiple submissions. If you prefer to sell all assets together, please feel free to submit your offering to AST’s regular patent purchase program by visiting our portal at www.ast.com.

Note that all submissions to this link will not be subject to the IP3 program, and may not include the same buyers. You should review the terms and conditions associated with such submissions carefully on the AST website.

+ Do I have to sell the entire patent family?

Yes, IP3 will only purchase an entire patent family.

+ Can I submit assets to both IP3 and AST’s normal buying program?

Please choose to submit assets to either the IP3 program, or to AST’s normal buying process, but not both.

As a reminder, IP3 is restricted to one patent family per submission. AST’s normal buying process can accept portfolios of multiple families.

At the end of the IP3 program, we will be submitting all assets not purchased by the IP3 program to AST’s normal process.

Submissions to AST’s normal process will not automatically be submitted to IP3. If you want your assets considered by IP3 you must make an independent submission to that program.

+ What if I want to submit an asset to IP3 that I have previously submitted to AST?

If you have assets that you have already submitted to AST, please submit through the IP3 process and also please notify AST. We will then put those assets on hold for AST.

At the end of the IP3 program, we will be submitting all assets not purchased by the IP3 program to AST’s normal process.

+ Can I submit an asset to IP3 that is a portion of a portfolio already submitted to AST?

Yes, you may submit to IP3 a portion of a portfolio already submitted to AST. Please use the IP3 submission form and also notify AST which assets should be removed from the portfolio that AST is considering.

+ If I submit assets to IP3 and then change my mind, can I cancel?

In the More Information document [pdf], Paragraph 7, we state that “your offer to sell at the price indicated in your submission is binding until the earlier of either: (i) IP3 rejects your offer, or (ii) August 24, 2016.”

+ Can we submit pending applications for review?

If a pending application is a part of a family with at least one issued asset, please submit it. We require at least one issued US asset in the submission.

+ What about provisionals?

If a provisional is a part of a family with at least one issued asset, please submit it. We require at least one issued US asset in the submission

+ What about Design Patents?

We are not considering design patents in this program.

+ Would you license patents?

This program will only consider purchases. Please feel free to submit assets available to license to AST’s regular program by visiting our portal at www.ast.com.

Note that all submissions to this link will not be subject to the IP3 program, and may not include the same buyers. You should review the terms and conditions associated with such submissions carefully on the AST website.

+ We have received notice of grant from the patent office, but haven't gotten a number yet. Can we still submit?

If you have a patent number assigned by the time the portal closes on June 10, please submit it. We require at least one issued US asset in the submission.

+ How do we submit if there are multiple owners to the same patent?

Please make only one submission with all the names listed.

+ How do I submit claim charts or EOU?

For this program we are not accepting claim charts or EOUs.

+ Do we get a grant back license (and the extent of such license) to the patent we sell you?

Yes, Section 1.3 of the Patent Purchase Agreement [pdf] includes the following language: “As of the Effective Date, IP3 hereby grants to Assignor for the life of all the Patents, an irrevocable, non-exclusive, non-transferable, non-assignable (including by operation of law or otherwise), non-sub-licensable, worldwide, fully paid-up right and license under the Patents, to develop, have developed, make, have made, use, have used, sell, offer to sell, import, export and otherwise transfer or dispose of any product, service, method or process.”

+ Would you accept a sale that requires payments over time or on-going royalty payments instead of one paid in full amount?

No, this program will not consider payments over time.

+ Will you consider edits to the Patent Purchase Agreement?

No, we will not consider edits to the PPA. This program requires the use of the Patent Purchase Agreement [pdf]

+ How do I know what Technology Category to select?

Please review the list of categories. Expand each one to see the list of subcategories contained within it.

+ What if I miss the IP3 deadline?

For patent sellers looking to sell all of their families as a group or if you have missed the IP3 deadline, you may still submit your patent for purchase by AST by visiting our portal at www.ast.com.

Note that all submissions to this link will not be subject to the IP3 program, and may not include the same buyers. You should review the terms and conditions associated with such submissions carefully on the AST website.

+ When will I know my submission’s status?

We are targeting to let all submitters know by July 29, 2016 if their submissions are tentatively accepted to move to the next step for purchase. With respect to sellers who AST contacts about purchasing their patents, please understand such notice is tentative and will require the seller to supply additional information to AST.

+ If my submission is accepted, how will I be paid?

If we remain interested in completing the transaction with you after reviewing all materials, we will return a fully executed agreement to you and payment will occur within 30 business days thereafter pursuant to the ACH wire transfer instructions you provide.

+ Will I know which companies are interested in my patent?

IP3 will be making all purchases on behalf of a group of companies. You will not know any particular company’s interest in your patent.

+ If IP3 buys my patent, can I still practice the invention?

Yes, pursuant to the Patent Purchase Agreement [pdf] that will be used for all transactions the patent owner will have a license back to practice the invention.

+ Who can I contact for more information?

If you have additional questions, please email IP3@ast.com.