Presentation at Technomart Taipei Sep 2012

1. Experiences from Global Patent Transactions
(Who is buying, who is selling, challenges and opportunities for
Taiwan and China companies)

2. TYNAX Business
 Patents Sales
 Patent Acquisitions
 Divestments
 Technology Transfers
 Licenses
 Strategic Alliances
 Other Technology-
Related Transactions

3. TYNAX.COM

4. Matching supply and demand globally
Proprietary tools enable efficient search and match

5. Patent buying process
 Buyer defines areas they are interested in
 Keywords, patent classes, technology
descriptions
 TYNAX create confidential search, internal and
external databases
 Typically 1000s of patents
 Filter, qualify, refine, select
 Negotiate with seller
 PPA (Patent Purchase Agreement)
 Time : 3-12 months

6. Why do companies buy
 Time critical
 Defensive reasons
 Offensive reasons
 Business development
 Strategic

7. Scale
 Over 500,000 patents
listed and growing fast…
 Operations in more than
10 countries.
 Broker affiliates in more
than 20 countries
 Around 150 technology
topics covered.

8. Extensive Technology Coverage
 Information
technologies
 Communications
 Networking
 Software
 Medical/biotech
 Semiconductor
 Wireless

9. TYNAX Clients
 Fortune 100
Multinationals
 Small, Independent
Developers
 Successful Startups
 Failed Startups
 VC Investors
 Universities
 Research Laboratories
 Private Equity Firms
 Government
Organizations
 Patent Licensors

10. Lessons learned
 First lesson: The global market is big,
fragmented, immature and not very liquid
 Lesson two: Patent transactions are complex
and no two are the same.
 Lesson three: It is a professional market,
buyers and seller need and use trusted third
parties.
 Lesson four: Professional relationships and
trust are critical success factors.
 Lesson five: Time and opportunity drive
success and value

11. 2011 a banner year, 2012?
 Nortel 4.5BN transaction
 Google-Motorola transaction 12.5BN (17.000
patents)
 Google – IBM (2000)
 Not just US, Europe, Asia also (Apple)
 Hot sectors:

Telecom

Medical device

Ecommerce

LED (On TYNAX now +500 portfolios)

Social networking

12. 2012 observations
 Facebook vs. Yahoo
 Microsoft $1BN transaction
 More companies making patents available=
more supply=IP is becoming an asset
 More buyers:

Product companies

Enforcement companies

Private Equity investors
= Fast growing market: 2012: $200BN

13. 2012 observations
 A recent Trend:
 Operating company acquires patent portfolio
with NPE
> Nvidia-IV jointly buys 500 wireless patents
 Over 40 NPE is existance.
See Patent Monetization Landscape
= Fast growing market: 2012: $200BN

14. Patent Monetization Landscape

15. Trends and Observations in Taiwan

Vibrant SME category companies (vs
Korea/Japan)

Focused on Mainstream technologies (e.g.
consumer, mobile)

File US patents vs other countries (US patents
account for 80% of portfolio value)

Early to market, Time to Market advantage

16. Opportunities for Taiwan

Combination of mainstream technology-early
to market
= Good opportunities for Taiwanese companies

TYNAX see higher success rate selling patents
from Taiwan companies than other countries.

17. A Taiwanese Patent Transaction
Profile
 SME's Patent Porfolio in Mobile Video Graphics
Technology. 2 US patents, 6 patent
applications, plus TW and CN patents/
applications family
 Seller not able to commercialize technology
 Monetize through sale of portfolio. Price range
$250k-500k.
 Typical transaction takes 6-9 mos.
- This transaction completed in under 4 mos.
 Listed mid-Nov 11. Buyer interest: Dec11.
Price nego: done 2 weeks end Dec11. .

18. A Taiwanese Patent Transaction
Profile (cont'd)
- PPA signed: end Jan12
- Documents checklist issued
- Closing Documents preparation/ Due Diligence
Feb12
 Transaction closed: early Mar12
 Typical transaction takes 6-9 mos.
This transaction completed in just over 3 mos. A
record!

19. Lessons from A Taiwanese Patent
Transaction
 A global patent transaction: Taiwan/US/ Spore
very doable.
 Good documentation and up-to-date filing will
speed up process.
 Price nego confined to US patents.
 Knowledge of potential infringements helped
process.
 Sell continuation patents as a part of portfolio
instead of separate portfolio
 Patent family sold together. Ie Taiwan/ China
counterparts.

20. China Opportunity
 China companies need to become international
companies
 Financial climate create major opportunities for
China
 $$$$ value IP and technology assets are
available to a degree never seen before
 Asset prices are driven down by supply
= Unique opportunity to move up the value chain
for China companies (OEM to ODM)

21. China challenges
 China structural challenges (financial, legal,
cultural, technical)
 Knowledge gap
 Experience gap
 Qualification gap
= Big need for training and education

22. TYNAX China Initiatives I

23. China Initiatives II
Publishing
Handbook in IP
management
经全国统一考试，可获中国企
业联合会企业管理岗位证书和
中国人力资源和社会保障部就
业资格两部证书

24. China Initiatives III
 Launch of online patent analysis tool

25. China Initiative IV
 Localized website (www.tynax.cn)

26. THANK YOU!
hp@tynax.com
www.tynax.com
www.tynax.cn