Largest Monetization Transactions on Record

IP News and Information

Businesses and corporations are always looking for new and creative ways to add additional revenue and profits to their bottom line. Increasingly, those efforts are including intellectual property monetization. More and more business entities are seeing the value of using their IP in ways they had previously overlooked: by selling or licensing their rights. Intellectual property is becoming an extremely valuable commodity for businesses and corporations, and increasingly these organizations are using their IP to drive huge transactions. Some of these transactions have even reached billions of dollars, and in some instances, they have either changed a company’s fortunes forever or even helped keep some companies afloat.

Largest Transactions on Record

There have been many large transactions involving IP monetization and commercialization, including some that have involved some of the largest corporations in the world. The following are some of the largest deals:

• Google – $12.5 billion to purchase Motorola, including access to 24,000 patents.
• Nokia – $7.2 billion total – $2.2 billion for 10 years for licensing patent portfolio to Microsoft + $5 billion for Nokia’s phone business.
• IBM – $ 1 billion annually from licensing patent portfolio.
• Kodak – $3 billion over a 10-year period from litigating patent infringement.
• Texas Instruments – $1 billion for 10 years in licensing royalties with Hyundai Electronics.
• Microsoft – earning revenue from 70% of all Google-based smartphones sold in the U.S. Exact terms of the deal were not released.

Google – as for Google, the tech giant is big player in IP trading as well. It purchased Motorola Mobility for $12.4 billion, which not only gives Google the ability to manufacture its own smartphones but also full access to the more than 24,000 patents owned by Motorola.

Nokia – the handset maker made a huge splash in the IP transaction realm when it agreed to sell its struggling handset business to Microsoft for $5 billion. In addition, for another $2.2 billion in cash, Nokia will allow Microsoft to have access to its patents for a 10-year period.

IBM – shortly after Texas Instruments found success with IP transactions, IBM, one of the world’s largest hardware and software makers, embarked on an IP monetization campaign of its own. By going after infringers the company was able to turn a business unit that counted revenue of less than $100 million annually into a huge moneymaker. IBM’s IP unit now earns the company about $1 billion every year.

Kodak – Kodak, which had been treading water for many years, turned to its large portfolio of intellectual property in order to stay afloat. The company has filed infringement lawsuits against many companies, including Apple, which have helped earn it more than $3 billion in revenue since 2004.

Texas Instruments – during the 1990s Texas Instruments (TI) used its extensive intellectual property portfolio to greatly increase its revenue, to the tune of about $1 billion a year. The company went after those who were found infringing on its IP. TI signed several licensing deals with these companies, the largest of which was with Hyundai Electronics. After Hyundai denied infringement a court ruled in TI’s favor and awarded more than $25 million to the TI. That led to a licensing deal that has accounted for about $1 billion in royalties for TI over a 10-year period from Hyundai.

Microsoft – speaking of Microsoft, the software maker now earns revenue from about 70 percent of the entire lineup of Google-based smartphones that are purchased in the United States. That’s because a few years ago, Microsoft struck a deal with LG, which will see the electronics maker from South Korea pay a license fee in exchange for a promise from Microsoft that it will not sue LG for using Google’s Chrome OS and its Android software in LG products.

Discovering New Opportunities

These deals represent some of the largest known intellectual property monetization deals. However, they are only a small sampling of the many IP trading and brokering deals that corporations execute every day. There are countless opportunities for companies and other entities to profit from IP monetization. They just need to know where to look and to understand the real value of their IP.

IP Brokering Done Right

As an intellectual property broker, IPTrader specializes in helping owners of IP portfolios and those looking to buy IP find each other. Together, with our help, these entities can successfully buy, sell, license or trade IP. IP trading is quickly becoming an excellent new source of revenue for companies, individuals and universities who own valuable intellectual property. If you want to monetize your IP, IPTrader can help. If you’re not even sure what IP trading is or you want to learn more about the concept of IP brokering, then please contact us at IPTrader. We understand that monetization can be a complicated process. That’s why we want to hear from you and discuss how we can help you profit from your IP. Please contact us below at your earliest convenience.