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November 07, 2008
ICEBERG Transactions Reveals that High-Tech Firms Exploit Intangible Assets like Patents to Survive Credit Crunch
By Shireen Dee TMCnet Contributing Editor ICEBERG Transactions recently announced that there has been an increase in the number of organizations that have started exploiting their valuable intangible assets namely patents for dealing with the adverse affects that an economic slowdown has created. High-tech companies specifically have a wealth of intangible assets in the form of patents that can be used for meeting emergency requirements of cash by such companies.
ICEBERG Transactions is a world-wide facilitator of intellectual property (IP) transactions and has revealed that since up to 70 percent of most technology companies’ assets are in the form of patents, such patents have now seen an increased sale with deals ranging from anywhere between few hundred thousands to above several million US dollars.
“Over the last six months we have noticed a direct correlation between the increase of high tech companies looking to sell patent assets and the global economic downturn,” said Patrick Snow, managing director of ICEBERG Transactions. “As the credit crunch gets into full step, patent sales are gaining strong recognition for their ability to allow companies to increase cash inflow and mitigate business risk going forward,” Snow added.
While the sale of patents are an instant method of raising funds by companies that have been struck by the global economic storm, the fact that provision of back licenses are a part of patent transactions allows for monetization of patent assets by companies. Thus, such licenses have allowed companies to have one less reason to worry about as their existing as well as future product roadmaps are still under protection.
One of the main reasons why organizations do not mind selling off their patents is the increased awareness about Internet protocol (IP) in the markets and an entry of numerous buyers and sellers in the marketplace. With maturity of the markets for IP transactions, organizations know well that the value of a patent can be maximized by an in-depth knowledge of its value as well as recognition of buyers who are most interested in its purchase. Selling off patents can be profitable for companies if well managed and can prove to be of significant help companies pave their way through the economic thrashing.
Shireen Dee is a contributing editor for TMCnet. To read more of Shireen's articles, please visit her columnist page. Edited by Tim Gray
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