A checklist for choosing an intermediary to ensure successful patent transactions!

Use an intermediary service to buy and sell patents! Explains how to choose a company

If you are looking to buy, sell or license a patent, leave it to P. J. Parker & Co. To make your patent transaction successful, you may want to consider using an intermediary service. Here we will introduce you to some tips on how to choose an intermediary.

The Importance of Patent Trading and the Role of Intermediaries

With the advancement of technological innovation and globalization, the market for buying and selling patents is becoming more and more active. Purchasing patents, either directly or through cross-licensing with competitors, has become an important strategy for ensuring the free use of technology. Selling patents can also provide new revenue sources and generate the fruits of research and development, accelerating technological innovation and being seen as part of a company’s growth strategy.

The benefits of using an intermediary

There are many benefits to using an intermediary when buying and selling patents. Intermediaries have the expertise to accurately evaluate the value of patents and set appropriate purchase and sale prices. In addition, they can quickly find buyers and sellers by utilizing their extensive networks. They also provide strategic advice to maximize the benefits of both parties during the negotiation process and support the parties until the contract is concluded. In this way, using an intermediary increases the success rate of patent transactions.

How to choose an intermediary to lead your patent transactions to success

Achievements and expertise

When choosing a company to mediate patent transactions, it is important to check their track record and expertise. The company must have experience in a wide range of patent transactions and be able to accurately assess value. Check the following points:

Transaction track record: the number and size of successful transactions
Areas of expertise: Wide range of technical fields and industries
Expert team: Trade and technical experts

Evaluation and assessment methods

One of the key steps in patent buying and selling is to accurately assess whether a patent is saleable and who the potential buyers are. There are many ways to evaluate patents, but nowadays, a combination of human and AI-based patent evaluation is the best method. Patents need to be evaluated from multiple angles, including the technical content of the patent, the possibility of infringement, the revenue size and growth rate of related or infringing products, and the history of patent disputes in the target industry.

Services provided and support system

Another point to check is the services and support provided by the intermediary. A good intermediary will not only evaluate patents and support the buying and selling process, but will also focus on creating patent proofs and marketing materials. Solid proofs and persuasive marketing materials will significantly increase the value of a patent. A good intermediary will also support the buying and selling process, including assistance with the buying and selling contract, negotiations, and ongoing support after the transaction is completed. The content will vary depending on the intermediary, so be sure to check when consulting with them.

Learn from successful patent transactions

Learning from success stories

There are many things to learn from successful cases of patent sales. For example, the importance of proper valuation, excellent marketing, and effective negotiation strategies. In addition, careful advance market research and evaluation of the future potential of patents make it easier to grasp the potential of the patents you are buying and selling. Also, taking advantage of the expertise and experience of a trusted intermediary can help you achieve better results. The key to success in patent sales is proper preparation and making decisions based on accurate information.

Points to note to avoid mistakes

Common mistakes and causes

What successful cases of patent transactions have in common is advance preparation and accurate valuation. On the other hand, the following reasons are pointed out in failed cases:

Reason for failure

Lack of expertise: Insufficient knowledge of the patent content and applicable industries
Insufficient evaluation…Patents need to be evaluated against multiple criteria, including technical strength, legal strength, likelihood of infringement, applicable industry, and the benefits of purchasing the patent in that industry.
Poor negotiation skills: unable to understand the needs of the seller and buyer and incorporate them into negotiations

When selecting an intermediary, it is important to keep these failure reasons in mind and to conduct thorough research and comparison, focusing on their track record, expertise, and the quality of the services they provide. After selecting an intermediary, it is also important to communicate clearly and openly with them about all patent-related issues, such as your needs, existing licenses, and restrictions on the type of company of the buyer or seller.

Checklist to avoid mistakes

In order to avoid failure in patent sales transactions, it is important to check the following points in advance.

1. Extensive patent review

A patent broker must thoroughly review the entire patent portfolio that is being sold or purchased to ensure that the portfolio is sold for maximum value.

2. Reliability of the intermediary

By selecting a broker with a proven track record and expertise, you can expect a smooth and accurate transaction.

3. Clarification of contract contents

In a sales contract, it is important to clearly state the conditions for transfer of rights, payment terms, and means of resolving disputes in the event of a dispute.

4. Trustworthy relationships with intermediaries

Successful patent transactions require confidential information to be shared with intermediaries, including information about existing patent licenses and potential infringement. Intermediaries must negotiate with patent owners how to share enough information to meet the other party’s needs while protecting the confidentiality of their client’s information. This requires a relationship of trust between clients and intermediaries.

By taking these checkpoints into consideration and making preparations in advance, it is possible to reduce the risk of failure in patent transactions.

If you are considering selling, purchasing, or licensing a patent, please contact P. J. Parker & Co. Our experienced patent brokers will support you in achieving a win-win patent transaction for both you and your business partner.