IP BACKED FINANCING Top Companies – raising Financing (by no. of applications) General Motors 15,866 12,946 Avago Technologies 10,023 Alcatel Lucent 8,438 Kodak 8,149 Freescale 5,910 Seagate 4,609 Dell 3,162 Avaya 2,914 Chrysler 2,313 Ps4 Luxco Top Financing Entities (by no. of applications) Major Industries - raising Financing (by no. of applications) Financing Entities vs Companies (Transactions) Trends Banks vs Transacted Technologies 1. Kodak (5,329) 2. Seagate (5,243) 3. Chrysler (2,548) 1. Kodak (5,329) 2. Dell (4,603) 3. Scient Games Int (2,242) 1. Freescale (8,156) 2. General Motors (7,465) 3. Kodak (7,762) 1. Avago (12,955) 2. Unisys (1,807) 3. Ciena (1,569) 1. Alcatel Lucent (10,026) 2. Carestream (1,011) 3. Novell (559) 1. Avaya (3,096) 2. Dell (4,464) 3. Momentive (1,300) 1. Seagate (5,486) 2. Spectrum Brands (1,169) 3. Quantum Corp (657) 1. General Motors (14,731) 2. Kodak (5,917) 3. Optis Wireless Tech. (636) 1. Unisys (1,583) 2. Affymetrix Inc. (604) 3. Heritage Home Group (389) 1. General Motors (9,709) 2. Chrysler (2,540) Transportation Data Storage Digital Data Processing Digital Communication IT Methods for Management Television & Video Transmission Mechanical Elements Medical Devices Tele - communications Semiconductors 4,898 4,778 3,770 2,340 2,324 2,176 2,171 1,877 1,866 1,331 Industry No. of Applications 6,650 4,075 2,750 2,586 2,152 1,826 1,727 1,421 1,407 1,318 Digital Data Processing Digital Communication Checking Devices Industry No. of Applications IT Methods for Management Printing Containers & Packagers Television & Video Transmission Polymers Mechanical Elements Gaming 1. Avago (3,310) 2. Dell (2,819) 3. Freescale (1,611) 1. Alcatel Lucent (5,800) 2. Avago (1,649) 3. Avaya (1,448) 1. Endo Pharmaceutical (576) 2. Hologic (444) 3. Masimo Corp (366) 1. Freescale (2,975) 2. Avago (2,532) 3. Ps4 Luxco (1,064) 1. General Motors (6,108) 2. Chrysler (1,245) 3. Lear (887) 1. First Data Corp (536) 2. AOL (361) 3. Alcatel Lucent (331) 1. Seagate (4,750) 2. Avago (1,334) 3. Ps4 Luxco (1,213) 1. Alcatel Lucent (1,743) 2. Avaya (1,377) 3. Aspect Software (415) 1. General Motors (3,324) 2. Chrysler (450) 3. Federal Mogul Corp (361) Sources: http://www.ipos.gov.sg/IPforYou/IPforBusinesses/IPFinancingScheme.aspx http://www.srr.com/article/financing-alternatives-companies-using-intellectual-property-collateral http://www.asiaiplaw.com/article/41/1817/ http://www.ipo.org/wp-content/uploads/2013/04/Securitisation_of_IP_in_the_US.pdf http://www.patent-innovations.com/documents/201306LimitedMonopoly-PatentsasCollateral.pdf http://patent-lawyers.usattorneys.com/alcatellucent-patent-monetization-program-microsoft-sues-samsung-patent-royalty-war/ http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2356015 http://www.wpto.com.tw/en/news-detail.php?nid=746 http://www.worldipreview.com/article/new-focus-on-ip-valuation-in-2013 http://www.kimchang.com/newsletter/templates/newsletter_ip_en_summerFall2013_article08.html http://business.asiaone.com/news/intellectual-property-collateral-companies http://amsacta.unibo.it/2705/1/Munari_Odasso_Toschi_EE_Chapter.pdf http://www.oecd-ilibrary.org/science-and-technology/valuation-and-exploitation-of-intellectual-property_307034817055 http://www.iam-media.com/blog/Detail.aspx?g=7d2e49be-4f84-461a-939e-2fb73664db2a http://www.iam-media.com/blog/Detail.aspx?g=481b76b6-637f-427f-b8d6-78d06cece504 https://www.relecura.com/reports/IP_Backed_Financing.pdf https://www.iconfinder.com/ Disclaimer: This infographic, including the information and analysis and any opinion or recommendation, is neither legal advice nor intended for investment purposes. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. INDUS TechInnovations specifically disclaims any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. Copyright © 2015 Relecura Inc. All rights reserved. Infographic created by: www.relecura.com [email protected] The data represented holds patent assignments for a 6 year period (2009-14) portraying the patent transaction records by entities employing intangible assets as a route to raise debt financing. 208 123 27 26 23 19 17 16 4,438 3,332 3,227 2,914 2,273 2,183 1,957 1,342 1,301 1,220 No. of Applications Transportation Digital Data Processing Semiconductors Mechanical Elements Engines, Pumps & Turbines Printing Television & Video Transmission Polymers Digital Communication Green Technology Industry 185 79 43 37 20 15 22 JP Morgan Chase Bank of America Citigroup No. of High Quality Patent Applications Organization No. of High Quality Patent Applications Assignors 0 5,000 10,000 15,000 20,000 JP Morgan Chase 9,334 4,762 6,421 5,453 10,898 9,498 Bank of America 5,042 5,117 4,482 4,080 19,737 8,674 Citigroup 9,380 6,485 2,896 9,829 3,331 2,410 Execution Year Trends 2011 2010 2009 2014 2013 2012 0 500 1000 1500 2000 2500 3000 3500 Filing Year Trends JP Morgan Chase Bank of America Citigroup Some of the patents held as collateral were filed in the 1980s and 1990s. Patent Assignment Execution Trend 2009 2010 2011 2012 2013 2014 43,490 53,911 43,236 45,173 71,147 66,918 The execution trend is based on 896,254 transactions comprising of 333,577 applications*. *An application refers to a set of patent transactions with the same application number, representing a single application. 6 6 3 2 2 No. of High Quality Patent Applications Organization 164 103 102 45 45 27 27 22 18 16 46,897 34,658 32,716 31,369 27,172 18,758 16,142 12,774 48,804 12,212 Wells Fargo Wilmington Trust Credit Suisse The Bank of New York Mellon GE Capital US Treasury Citigroup Deutsche Bank Bank of America JP Morgan Chase 1. Kodak (1,820) 2. Rovi Corp (1,373) 3. Arris Group (535) Year Country Government / Bank Scheme / Purpose Offerings 1995 Japan Development Bank of Japan Loans to companies in middle development stage 16 billion Yen for 260 IP backed loans (in a decade) 2010 China State Intellectual Property Office IPR Pledge Financing Program(started in 2008) 25 billion Yuan for 2000 projects 2013 Malaysia Government IPR Financing Fund Scheme RM200 million (US$65 million) 2013 Korea Korea Development Bank Loan programs by pledging IPR as collateral 2 billion Korean Won (about US$1.8 million) 2014 Singapore Government IP 101 (loans using IP as collateral) $100 million 2014 China China Development Bank Loan to Quanlin paper against a portfolio of trademark and patent rights RMB7.9 million (approx. $1.3 billion) against a portfolio of 110 patents and 34 trademarks N/A Germany Landesbank Rheinland- Pfalz Financing of development projects of mid-size companies (technical documentation of research projects as collateral) 40 transactions for EUR140 million (in a 4 year period) IP Financing Schemes Company Financial Entity Loan Raised (Patents) GIK Worldwide Pitney Bowes Capital US$57 million Eastman Kodak Citicorp North America, Inc. US$950 million (7766 patents) Insite Vision Bank of New York US$6 million (32 pharma patents) Cambridge Display Technologies Lloyds TSB US$15 million Alcatel Lucent Goldman Sachs & Credit Suisse US$2.1 billion started company The General Electric Company Thomas Alva Edison in 1880’s Incandescent Electric Light Bulb Patent as collateral Secure Financing Other Instances IP Financing Process IP Backed Loan Cases IP Asset (R&D & Technology Sector) Financial Entities (Bank, Venture Capitalist, Company Financing Arm) Valuation (Cost Based, Market Based, Income Based) Formal Application (To Financial Entities) IP Backed Financing (Loans, Securitization, Sale & License Back ) IP as a collateral can be defined as “a borrower’s pledge of specific property, such as future Cash Flows from existing IP assets, or rights to the underlying IP itself, in order to provide recourse for the lender in the event of loan default ”. The First Instance