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Tynax ~ Patent Library

Full-Service Broker Representing Patent Sellers

Leveraging the Patent Library and a global network of contacts with buyers and licensees, Tynax acts as a full-service sell-side patent broker representing clients looking to monetize their patents and intellectual property assets.

When engaged with a patent seller, we prepare marketing materials, including claims charts where appropriate, and we undertake an outbound marketing effort to reach potential buyers. Click here for a detailed guide to selling your patents.

Listing Your Patents in the Patent Library (Free)

To list your patents in the Library, you need to create an account here, log in, go to My Listings tab and create a listing. Then answer the questions in the form as completely as possible.

Claims charts and evidence of use are very important. If you suspect the patents are being infringed, make sure to complete that section of the form, and attach claims charts and other evidence of use to your listing.

Submitting Your Patents for Consideration by Tynax Buying Clients (Free)

Like a real-estate broker, Tynax sometimes represents buyers and sometimes represents sellers in patent sale transactions. Unlike real-estate brokers, Tynax only represents the buyer or the seller--it's our policy not to represent both buyer and seller in the same transaction. As a patent holder, or an intermediary, you are invited to submit your patents to Tynax without engaging us to broker the patents for you. We will match the patents with the searches we are running for our buying clients and library members, and if there's a match and the buyer proceeds to make an offer and purchase the patents, you will not be asked to pay Tynax any commissions or fees at all. That's because, in this case, Tynax is representing the buying client and is compensated by the buyer. Our buyers are looking for patents that are infringed. If you have infringed patents that you're looking to monetize, we welcome you to submit them on the InfringedPatents.com website.

If, upon review, we find that your patents are not a match for our buying clients, and you enter an agreement to engage Tynax as your patent broker, instead of representing a buyer we will represent you as the seller, take your patents out to the market and promote them to a number of potential buyers. In this case, the agreement you enter with us will specify the associated fees for our sell-side brokering services.

Typical Technology Sectors

Patent sale transactions take place in all technology sectors--virtually any patent is sellable where a willing buyer is matched with a willing seller.  However, patent sales are very popular in fast-moving high-tech sectors where successful organizations often switch strategies in response to the dynamics of the market.  Here's a list of areas where we're seeing buying activity. As the patent portfolio must support the product offering, shifting corporate strategies and new product releases lead to patent sales and acquisitions.  As the patent filing process takes several years, it lags behind the shifts in corporate strategy and companies are forced to acquire patents from outside if they want their portfolio to reflect the current business activity.

Typical Organizations

Although the patent buyers are often large corporations and patent pools, patent sellers are made up of individual inventors, startups, R&D labs and all types of organizations.  Many patent holders do not have the sales and marketing channels in place to commercialize their inventions and they find that the most profitable strategy for monetizing their patents is to sell them to a large corporation with matching products and channels. As well as the individual inventors and startups, large corporations often sell patents when they are pruning their portfolios and selling off patent assets that are no longer core to their business needs.

Some buyers acquire patents and portfolios with a view to asserting them against infringers--they are essentially in the business of selling licenses, but will bring infringement actions in court where necessary. Clearly, infringed patents are top of the shopping list for these buyers.  Many corporate sellers refuse to sell patents to this type of buyer.

Patent Sale Transaction Process

The process starts with identification of the patents and intellectual assets to be sold. This may be the result of a cataloging activity that maps the claims of existing patents against the current and future requirements of the business.

An anonymous listing is then written and posted on the Tynax Patent Library. The listing is syndicated to targeted buyers and brokers/agent representing buyers all over the world.

Upon execution of confidentiality agreements, details of the patents and associated assets for sale are provided to buyers. Buyers often have questions relating to licenses and other potential encumbrances to clean title. Some buyers have questions related to potential infringement. One of the first questions asked by the buyer is the price. For this reason, the sales process can be more effective when an asking price is circulated with the listing. For larger, more complex transactions, technical questions may be posed.

Following this question and answer process, the buyer may make a tentative offer. If there are several interested buyers, a bidding process may take place. Following the negotiation on price and other terms, the preferred offer is accepted by the seller.

The buyer then usually provides a patent purchase agreement to the seller and commences the due diligence process. Due diligence in this type of transaction generally focuses on validity of the patents and ensuring the sellers title is clean. Prior art investigations may be carried out by the buyer. Any licenses, liens or other encumbrances need to disclosed and discussed during the due diligence process.

After the due diligence process is complete, the closing process involves transfer of payment in exchange for patent rights and recording of the assignment with the patent office.

Common Concerns

Clients are often concerned that their patent sale activities are kept confidential and they're not disclosed to the market. The identities of the seller can be shielded until the NDA confidentiality agreement is signed by the buyer and the patent numbers are disclosed.

Many corporate sellers are highly selective about the type of buyer they are prepared to engage with. They are usually reluctant to sell to enforcement-focused buyers. This is particularly true of corporations that have become the target of patent infringement suits from these buyers in the past. Often the seller will refuse to sell to a direct competitor. The role of the intermediary is important here in presenting the divestment assets only to buyer-types approved by the seller. When the concerns of the seller are known by the intermediary, promotion of the assets can be restricted to the type of buyer that would make a good match and fit within the seller's guidelines.

A seller with an existing client base and an established product line that is not being sold as part of the sale transaction will usually request a license back that enables them to continue servicing their customers without the fear of a future patent infringement suit from the buyer.

Key Negotiation Points

Pricing is always a significant factor in these negotiations, however, other issues are sometimes even more important in finding win-win deal structures that meet the demands of each of the parties.

The scope of a license back can be a source of much discussion. The seller wants to maximize flexibility in the scope of the license back while the buyer wants to restrict the scope so that it does not interfere with their patent rights.

Where the seller is suspicious that the buyer may be overly-zealous in enforcing the patents, the seller may wish to incorporate a covenant into the assignment contract that restricts the buyer from aggressive litigation and threatening licensing activity. This may become a topic of some negotiation.

Why Select Tynax to Broker the Sale of Your Patents?

With global reach via its online Patent Library and broker network, Tynax has access to more buyers and an efficient process for reaching them. Patent buyers subscribe to Tynax for new listing alerts.  More buyers generally leads to higher prices for the seller.

  • Largest marketplace. If you browse the Tynax Patent Library, you will see that there are literally thousands of listings representing many thousands of patents. The Tynax Patent Library represents the world's largest marketplace of patents available for licensing or sale.
  • More buyers.
    Following an extensive process of research and analysis, the Tynax database of buyers is the most comprehensive and accurate in the industry. Tynax not only identifies and communicates directly with the largest, most active, patent buyers but has access to thousands of operating companies, patent attorneys and agents representing buyers of all types. More buyers means more competition and better prices.
  • More brokers. The Tynax network of brokers extends across the U.S., Asia, Europe and all the most active technology hubs. When engaging with Tynax, you are engaging with over 30 active brokers, all with access to their own pools of buyers.  All these brokers act to promote your patents to their communities of buyers.
  • Global reach. Of course, the Tynax Patent Library is available to viewers all over the world, but Tynax also has representative offices and brokers located in key markets such as Japan, Taiwan, Korea, China, U.K., France and Germany. Much of the buying activity for U.S. patents takes place offshore today, especially in Asia and Tynax has unique access to these markets.
  • More offers. Access to more buyers and promotion by more brokers translates to more offers. More offers leads to better prices.
  • Better prices. Better prices are achieved through two main activities: 1) The presentation of patent analysis information justifying a higher price; and 2) The outreach to multiple buyers. Basic economics principles apply and the price is maximized when there are multiple competing bidders.
  • Quicker process. As the Tynax Patent Library involves email alerts targeted at buyers and agents with an interest in specific areas, the process of listing and promoting the patent is quicker on Tynax than through any other channel. A patent-for-sale listing can be posted on Tynax within 1 hour and can be syndicated to every major buyer and agent within 24 hours of listing.
  • Better terms. Tynax often waives the listing fees, and relies exclusively on commissions from Tynax-generated transactions. The Tynax commission structure is lower than average, and Tynax shares its commission with other brokers that participate in the transaction.
  • More confidential. Listings on Tynax are confidential--the patent numbers and identities of the parties are not disclosed in the listing. This allows for patent sale and acquisition to take place under discrete, stealth-mode transactions.