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IP, IP Asset, Patent, Uncategorized

China Technology Exchange Offers Monetization Opportunity For US And European Patent Owners

Last week’s IPBC featured a break-out session called “Lift-off in China” to talk about the country’s recent focus on innovation and IP as a growth strategy for future prosperity.  The panel featured, among others, Zeng Yun, Deputy Director of IP transactions at the China Technology Exchange. CTEX is a subsidiary of the China Beijing Equity Exchange founded in 2009 to provide a platform for technology and IP transactions for Chinese companies. Last year, CTEX held a patent auction attracting over 70 participants and selling 2.8 Billion RMB (roughly $400 MM USD) worth of Chinese patents. I caught up with Yun on Tuesday to talk about what CTEX is planning for an encore.

Interestingly, CTEX plans to offer US and European patents to its contingent of Chinese buyers, rather than just Chinese patents.  Given that sales of Chinese patents raised $400 MM (USD) [UPDATE: alternate source indicates sales volume was 2.8 million RMB, in other words $400,000 USD], the next auction, scheduled for September, could present a substantial opportunity for owners of US patents.  Currently, CTEX is looking for both patent owners willing to list their assets in the auction.  Yun told me that there currently aren’t any plans to charge patent owners a listing fee, and instead only plan to collect a transaction fee for those assets that sell at the auction.  The buyers are primarily interested in acquiring patents related to industry standards.  Specifically of interest, according to Yun, are patents related to Wi-Fi, mp3 and LTE technologies.

To support the auction, CTEX is also interested in identifying any vendors interested in assisting with patent analysis and due diligence.  Only the enterprising type need to apply, as CTEX is once again primarily interested in vendor’s willing to accept a share of patent sales, rather than up-front compensation.

In other auction news, Dean Becker told me back in May that ICAP’s next patent auction should exclusively feature covenants not to sue. This would potentially leave CTEX as the only game in town when it comes to large-scale, public patent auctions.  And if CTEX can generate $400 MM (USD) by offering only Chinese patents, then it ought to have no trouble generating interest for US patents, where IP investment and monetization processes are already significantly more developed.

For those patent owners who may not be a good fit with ICAP’s new format, CTEX could offer an attractive alternative.

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Discussion

One thought on “China Technology Exchange Offers Monetization Opportunity For US And European Patent Owners

  1. That strikesme as significant.Somethingelse that could beofsignificance is that CTEX is now working on the creation ofan IV-style fund backed by Chinese investors that would among other things acquire IP rights from research and academic institutions abroad.

    Posted by hemp | July 4, 2011, 11:19 am

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