Validated Demand
The licenses we sell are made of the finest patents as they are validated by our customers – operating companies like you – who crowdfund all our patent acquisitions.
Crowdfunding Ensures Quality and Affordability
SynPat acquires patents from which it produces the licenses that it sells in the store. We could allow financial institutions to fund our patent acquisitions, but that’s what trolls do. Instead, SynPat presents to its customers each patent portfolio that it considers buying and allows them to equally share its cost. Giving our customers the last word on whether or not SynPat should buy a portfolio helps validating the desirability of the licenses, and makes their cost affordable.
1
Acquisition
Patent owner sells a portfolio to SynPat in exchange for an agreed price and a revenue share.
2
Syndicate & Fund
Early customers participate in funding the acquisition in exchange for a license and a revenue share.
3
License
All SynPat’s revenues from later customers are equally split among the seller, funding customers, and SynPat.
Advantages to Participants
Cost Price
Customers who wish to participate in funding the acquisition of a patent portfolio equally share its purchase price. In exchange, each participant receives from SynPat either a Non-Exclusive License or an Enforcement Right, or both. Since no markup or commission is added, the participant practically pays the license “cost”.
Revenue Share
1/3 of all SynPat’s revenues from an acquired patent portfolio is equally shared among the customers who participated in funding its acquisition. The shared amount is not limited to a participant’s contribution, and can significantly exceed it, rendering a very high ROI for the participating customers.
First Mover Advantage
License acquisitions are subject to inventory availability. For example, a request by Company A to acquire an Enforcement Right that would allow it to exclusively license Company B must arrive before a similar request from Company C. The sooner you buy, the more likely you’ll have it.
Risk Mitigation
Participants validate patents through their own due diligence before committing funds. This crowdsourced validation ensures only high-quality, high-impact patents are acquired, significantly reducing the risk of investing in weak or unenforceable patents.
Pricing Simulator for Licensees
Create your own scenario below, choose the number of licensees in each stage, and see how the Cost, Regular, and Validated prices generate positive returns to Participants.
Frequently Asked Questions
What’s the advantage in participating in an acquisition syndicate?
Participants in an acquisition syndicate not only obtain a license under high-impact patents at a minimum price, but also are entitled to a one-third (1/3) share of any of SynPat’s revenues, including from licensing or sale of the acquired patents. For some companies, the ability to acquire Enforcement Rights is the most compelling advantage over regular licensees, which ultimately makes them participate.
Why is Participants’ expected ROI between 50% and 200%?
A Participant’s expected financial ROI on a typical syndicate is about 50%. That is, if a participation fee is $200,000, a Participant should expect to receive from SynPat about $300,000 in addition to its non-exclusive license. The effective ROI is 200% when you factor in the value of the license itself. For example: if a Participant pays $200,000 and receives $300,000 in revenue share plus a license valued at $300,000 (Regular Price), the effective return is $600,000, yielding 200% effective ROI.
Can my company participate in funding an acquisition?
Yes, provided your company is an operating company. The SynPat license store is open to operating companies only, and the same applies to participation in any of the ad-hoc syndicates organized by SynPat to fund the acquisition of patents. Keep in mind that: (1) “Cost Prices” are offered to participants only, (2) During the syndication period, Enforcement Rights can be purchased only by Participants, and (3) Participants are entitled to share 1/3 of SynPat revenues.
What if one or more Participants fails to pay?
In case one or more Participants fails to pay its share – it does not affect the licenses of the other Participants, and they still get their licenses. The licenses to requesting Participants become effective before they make their payments. So, if you received from SynPat a Payment Notice – rest assured that your license is effective. All that’s left is for you to make the payment to secure its effectiveness.
How do I participate in SynPat’s acquisition syndicates?
Enter the store and register as a customer. It’s free, quick and easy. SynPat will verify that you represent an operating company and approve your registration. Registered customers may select from a long list of technologies and markets those of their interests. SynPat will send you invitations to participate in syndicates for acquisition of patents relating to your preferences.