Conglomerate converts negative cash flow to multi-million dollar gain
“Chipworks’ intimate familiarity with the semiconductor and microelectronics market helped define our options and move us quickly from a negative cash flow to a multi-million dollar profit.”
- Director of Finance
Situation
A multi-billion dollar conglomerate that had diversified into the semiconductor business, realizing it was not a core competency, sold the business line but retained a 60-patent portfolio. The “orphan” patents were perceived to be of no continuing value to the conglomerate. With no license income and maintenance fees topping $100,000 annually, the company’s legal and finance teams were under pressure to derive value and or abandon the portfolio.
Challenges
- Evaluate the patent portfolio’s strength, appraise its market potential and identify probable infringement
- Using the intelligence, determine a course of action for asset recovery: license, sell, or abandon the portfolio
Chipworks Solution
- Completed an in-depth evaluation of the company’s patent portfolio, identifying those most likely to produce hits
- Documented the IP against the world’s semiconductor technology leaders
- Created numerous Claim Charts against an industry leader
Results
- Successfully negotiated a favorable license with the industry leader, demonstrating the portfolio’s long-term value
- Because of its proven value in securing licenses, sold the orphan patent portfolio for more than $10 million
- Earned a return more than 25 times its investment with Chipworks
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