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IP, IP Asset, Patent

LML Payment Systems Wraps Up Patent Monetization Effort

LML Payment Systems (NASDAQ:LMLP) hired McKool Smith to enforce its payment processing patents against the giants of the financial industry.  That effort wrapped up earlier this year, and with the patents expiring in January 2013, the company announced it had no plans to initiate any further monetization efforts. As I reported on Seeking Alpha:

Since 2008, LMLP licensed 21 different companies, reporting a total of $46 M in “non-recurring” licensing revenue. Some of the companies larger revenue generating settlement agreements included $7.5 M each from PayPal and Citigroup, $5 M from Wells Fargo, and $4.5 M from JP Morgan.

On average, LMLP earned $11.5 M annually during its four year IP monetization campaign

See the article LML Payment Patent Monetization Proves IP Is More Than An Exit Strategy for more detail on what this means for LMLP.  Below is a complete list of settlements reported by company press releases.  LMLP is an important case study to refute the notion that IP is merely an exit strategy (ala Nortel).  In this case, LMLP used patent monetization to maintain a high cash balance while it’s transaction processing business ramps up.  Details on LMLP’s financials are in the article linked above.

In more or less reverse chronological order, starting with the most recent, LMLP’s reported settlements are:

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