AST Announces IP3 2019 Results

PRINCETON, N.J., March 11, 2020 (Newswire.com) - AST, the member-driven leading provider of proactive and collaborative patent defense solutions, today announced the results from IP3 2019, a fixed price, fixed term, collaborative patent buying program. IP3 2019 focused on soliciting patents from the following technology areas:

• Advertising & Content Distribution
• Artificial Intelligence (AI) & Machine Learning (ML)
• Augmented (AR) & Virtual Reality (VR)
• Automotive & Mobility
• Blockchain & Financial Services
• Cloud Computing & Web Services
• Computer Software & Hardware
• Health Tech & Healthcare IT
• Internet of Things (IoT) & Smart Home
• LED Lighting & Optoelectronics
• Location-Based Services (LBS) / Navigation
• Medical Devices & Imaging
• Semiconductor Manufacturing & Equipment
• Wireless & Telecommunication

Similar to previous IP3 programs, IP3 2019 attracted strong interest from both patent sellers and members, with nearly twice as many patent portfolios compared to 2018, and 24 operating companies collaborating on purchases. Participants in IP3 2019 included Cisco, Facebook, Google, Honda, IBM, Intel, Microsoft, Oracle, Philips, SAP, Uber, and Verizon, among others, with nearly $5 million spent to acquire 53 patent families.

“IP3 2019 was our most successful iteration of our fixed price, fixed term patent purchase program to date, with more participants, more capital committed from our Membership, and more patent families acquired,” said Russell W Binns, Jr., CEO of AST. “Our Membership, which includes many of the world’s leading technology companies, finds IP3 an easy, streamlined way to apply capital, make purchasing decisions, and acquire patent rights to mitigate risk. The IP3 program complements our standard purchasing process very well, as some deals are better situated for a fixed price program while others may be more complicated needing negotiations and many changes to the patent purchase agreement.” 

Results Summary

• 45 deals acquired with 53 families, 91 U.S. Patents, 113 active assets
• Prices ranged from $1,000 to $450,000
• Avg. price per patent family – approx. $96k 
  • (Compared to $99k in IP3 2018, $128k in IP3 2017, and $96k for IP3 2016)
• 24 Members contributed to acquisitions
• AST closed all 43 of the deals before the year-end, two were delayed due to seller issues
• Over 1,300 submissions were received from 400+ patent owners 
• Almost double the number of total submissions compared to IP3 2018 demonstrating a strong interest among Sellers to participate in fixed price, rapid response programs like IP3.
• 88% of submissions were single patent family offerings, which is easier for sellers to provide fixed prices and more manageable for buyers to digest
• 94% of patent portfolios were offered at a price below $500K
  • Median price per portfolio - $100K
  • Average price per portfolio - $118K
• Wireless & Communications was the leading seller submitted technology category for IP3 with 231 submissions and 259 patent families. Followed by Software, Cloud Computing & Web Services, and Advertising & Content Distribution. 

For more detail analytics and program details, please visit www.ast.com.

IP3 2020

AST is preparing for IP3 2020 later in the year, with a submission window opening on July 6, 2020. IP3 2020’s technology areas will be decided in the coming months, but we expect to have similar technology areas along with a similar schedule to IP3 2019.

About AST

AST was founded in 2007 by four global high-tech companies as a member-driven cooperative to mitigate patent risk and to operate with no profit motive. AST serves the world’s most innovative and recognized technology companies through the cost-sharing acquisition of patent rights; provides access to the most comprehensive database of patents offered in the secondary market; offers Quarterly Market Insights reporting; and facilitates a community for IP thought leaders to interact and form business relationships.

AST’s Members include top global companies from a wide range of industries including Cisco, Ford, Google, Honda, IBM, Intel, Microsoft, Oracle, Philips, SAP, Sony, Spotify, Uber and Verizon. For more information on AST, please visit http://www.ast.com.

Source: Allied Security Trust (AST)