Today’s big corporate money deals are not buying tangible assets such as inventory, equipment and real estate. And big money finance deals are not being secured by tangible assets. The big M&A and financing deals are now targeting the most valuable business asset in the world – Intellectual Property.

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The size of big money deals acquiring or securing IP portfolios continue to get larger. Recently one of the biggest-ever specifically IP-based finance deals was closed in China. Quanlin Paper secured a loan of approximately $1.3 billion against it’s IP portfolio of 34 trademarks and 110 patents. According to news reports, this is the largest deal to date ever secured by an IP portfolio.

Worldwide M&A deals are being driven by valuable multi-billion dollar IP portfolios. These companies recognize the value of IP and what it means to their ability to grow and maintain their competitive advantage.

Here’s a list of some the biggest US IP deals:

  • Google buys Motorola Mobility for $12.4 billion in August 2011 and attributes $5.5 billion to the value of Motorola’s patents.
  • The Nortel patent portfolio sold at auction to the Rockstar Bidco consortium for $4.5 billion in June 2011.
  • Alcatel-Lucent loan of $2.1 billion from Credit Suisse and Goldman Sachs secured against 29,000-strong patent portfolio in December 2012.
  • Microsoft pays AOL $1.065 billion for portfolio of 1,100 patents and licenses in April 2012.
  • Facebook buys 650 patents from Microsoft, which Microsoft had previously acquired from AOL, for $550 million, April 2012.
  • Consortium led by Intellectual Ventures and RPX pays $525 million to acquire portfolio of Kodak digital imaging patents, December 2012.
  • Purchase of 882 Novell patents for $450 million by Microsoft-led consortium, November 2010.
  • InterDigital sells 1,700 wireless technology patents and related rights to Intel for $375 million, June 2012.
  • Purchase of MIPs patent portfolio for $350 million by Bridge Crossing, November 2012.

In today’s economy, the most successful companies are built on intellectual property and licensing. IP rights gives your business a significant competitive advantage. More importantly, the strategic use of your IP assets through licensing creates long term profits for your business.

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To succeed in this IP Centric economy, your business must fully utilize it’s IP assets to successfully compete, grow and gain new market opportunities.

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