Weathering the economic storm

Credit Crunch Leads to High-Tech Firms Exploiting Biggest Asset

London, UK (6th November 2008) – As the impact of the credit crunch spreads through the global financial centres and into the wider business community, ICEBERG Transactions, a global facilitator of intellectual property (IP) transactions, says that more high-tech organisations are seeking to exploit their biggest asset – patents. With over 70% of a company’s value often in the form of intangible assets, realising a return from the sale of patents could consolidate cash positions in the face of a global economic downturn.

Deals typically run from several hundred thousand to several million US dollars and higher, so selling part of a patent portfolio can be a quick and effective way for companies to weather the economic storm. Moreover, with the provision of back licenses as part of the transaction, companies can monetise patent assets with the peace of mind that existing and future product roadmaps are still protected.

“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,” says 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.”

A heightened level of awareness around IP, combined with a growing number of buyers and sellers entering the marketplace has made organisations less concerned about selling patents. As the market for IP transactions matures, maximising the value of patent assets requires both an in-depth understanding of the offering and expert knowledge of whom would be most interested in its purchase. Managed correctly, patent sales are a viable way for companies to survive the credit crunch.

About ICEBERG Transactions

ICEBERG Transactions is a globally recognised IP transactions organisation headquartered in London, UK. For the last three years, ICEBERG has been working with an increased number of high tech companies throughout the US, Europe and Asia, ranging from large corporations through to government organisations, R&D institutes, universities and start ups. The company brings a unique and highly successful ‘market-driven’ approach to the IP transactions marketplace by liaising with IP owners to rapidly assess their portfolio IP assets and identify how, where and with whom they can be divested, in a way that ensures a clear set of objectives are met.

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