Situation 

A multibillion 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 

For over 20 years, Chipworks has been a trusted patent and technology partner to the world’s largest and most successful companies. Business leaders rely on Chipworks to help them identify and fully leverage their most valuable patents and provide crucial analysis of high-revenue products in the most competitive, fastest changing technology markets.