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IP attorney Raymond Millien recently gave an interesting presentation on the current state of the “Patent Marketplace.”   It is a fact-based analysis of the many indicators that, in his words:

“…IP is still a highly-illiquid asset class with a very inefficient marketplace.  That is, potential sellers of IP rights historically have been unable to access a large quantity of buyers who are willing to pay a predictable price under an agreed-upon set of conditions.  Furthermore, IP transactions are characterized by difficult acquirer identification, long periods of negotiations and endless due diligence activities.  Such transactions are also hampered by the lack of widely-accepted valuation models and independent valuation organizations.”

These observations further support the notion that in order to monetize Intellectual Property, particularly patents, IP owners should approach the project with a keen eye towards the objectivity, credibility and validity of the valuations, and looking to partner with seasoned advisors to market, negotiate, and help bring the dispositions to a mutually satisfactory closing.  This is certainly the approach we take at IPmetrics when tasked with converting patents into money.

Highlights of Millien’s presentation can be found at: The Current State of the Patent Marketplace.