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 and their cost affordable. In exchange, the participating companies receive from SynPat licenses under the acquired patents and share 1/3 of SynPat's revenues from further sales of licenses.
Patent owner sells a portfolio to SynPat in exchange for an agreed price and a revenue share.
SYNDICATE & FUND
Early customers participate in funding the acquisition in exchange for a license and a revenue share.
All SynPat’s revenues from later customers are equally split among the seller, funding customers, and SynPat.
Advantages to Participants
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 a Strategic License, or both. Since no markup or commission is added, the participant practically pays the license "cost".
1/3 of all SynPat's revenues from an acquired patent portfolio is equally shared among the customers who participated in funding its acquisition by SynPat. 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 a Strategic License that would allow it to exclusively license Company B must arrive to SynPat before a similar request from Company C, or a request from Company B for a Defensive License. The sooner you buy the more likely you'll have it.
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 are designed to ultimately generate positive return to Participants:
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 Strategic Licenses is the most compelling advantage over regular licensees, which ultimately makes them participate.
Why Participants’ expected ROI is 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 it's non-exclusive license. That's the financial ROI. Note, however, that the effective ROI is 200%. Take for example the following simple scenario:
Seller's upfront price is $600,000;
Number of Participants is 3; Number of Regular Licensees is 5, and the number of Late Licensees is 2.
Since the Seller's upfront price is divided equally among the Participants, each will pay $200,000 (Cost Price = $600,000 ÷ 3). A license Regular Price is always 1.5 times the Cost Price, so in this case it will be $300,000 (Regular Price = 1.5 x $200,000). Since the Validated Price is twice the Regular Price, then in this case it will be $600,000 (Validated Price = 2 x $300,000). Synpat's revenues from selling licenses to five Regular Licensees $1.5M (= 5 x $300,000); and from selling licenses to two Late Licensees $1.2M = 2 x $600,000). SynPat's total revenues are $2.7M.
1/3 of all SynPat's revenues is paid to the Participants and split equally among them. In this case each Participant will receive from SynPat $300,000 (= 1/3 x $2.7M ÷ 3).
Financial ROI: A Participant who initially paid $200,000, receives from SynPat a revenue share of $300,000, generates a financial ROI of 50%.
Effective ROI: In exchange for its initial payment of $200,000, a Participant receives, not only a revenue share of $300,000, but also a non-exclusive license that is sold at a Regular Price of $300,000. So, the effective return of such Participant is $600,000: $300,000 in cash (revenue share), plus $300,000 in value (non-exclusive license). The effective ROI is therefore 200% (=($600,000-$200,000)/$200,000))
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. If, however, your company decides to not participate, but rather to acquire a license as a regular licensee, it is very welcome to do so. Keep in mind that:
- "Cost Prices" are offered to participants only. Regular and Risk Averse licensees can always buy their licenses at "retail" prices (Regular = 1.5 x Cost) or "validated" prices (Validated = 2 x Regular), depending on the time of acquisition.
- During the syndication period, Strategic Licenses can be purchased only by Participants in that syndicate.
- Participants are entitled to share 1/3 of SynPat revenues, which are typically generate them 50% ROI.
What if one or more Participants fails to pay? Do I still get my license?
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 as a Participants.
As illustrated in the flow chart above, the licenses to requesting Participants become effective before they make their payments. So, if one or more requesting Participants fails make its payment - it happens after the licenses to other Participants become effective.
So, if you received from SynPat a Payment Notice - rest assured that your license is effective. All that's left is for your to make the payment, to secure its effectiveness.
I want to participate in SynPat’s acquisition syndicates, what’s next?
Enter the store, and register as a customer. It's free, quick and easy. SynPat will check that you are represent an operating company, and approve your registration. Register customers may select from a long list of technologies and market, those of their interests. SynPat will send you invitations to participate in syndicates for acquisition of patents relating to the list of your preferences.