Licenses at Fixed Prices
Across the store, licenses under any portfolio are offered at fixed prices
Market Driven Pricing
The price of each license in the store is shown next to the license in a fixed Dollar amount. It changes from COST PRICE, to REGULAR PRICE, to VALIDATED PRICE, depending on the time of acquisition.
A license COST PRICE is determined during the acquisition of the portfolio by SynPat, and equals the patents purchase price divided by the number of licenses acquired by customers who participate in crowdfunding. The more attractive the patents, the fewer companies needed to crowdfund, and the higher the license COST PRICE.
Regular Price
Available during first 4 months
= 1.5 × COST PRICE
Validated Price
Available at any time thereafter
= 2 × REGULAR PRICE
Pricing Simulator
Plug in your numbers below and see how the Cost, Regular, and Validated prices are calculated.
Frequently Asked Questions
How much does an Enforcement Right cost, and when can I buy it?
The price of an Enforcement Right always equals the Regular Price of a non-exclusive license. Whether you buy as a Participant, Regular licensee, or Late licensee, you pay the same price for the Enforcement Right. Participants have a significant advantage: they can buy Enforcement Rights during the syndication period, while others may buy them only when Regular Licensing begins.
Does SynPat’s pricing mechanism raise anti-trust issues?
No. The Sherman Act forbids restriction of competition by large companies that cooperate to fix prices through pools or trusts. This risk doesn’t exist with SynPat. When SynPat acquires a portfolio, it first negotiates the price with the seller, and only then tries to raise that price from operating companies. The pool is created after the price is determined, not the reverse. Restriction of competition happens when collaboration is created prior to negotiation, creating “buying power.”
Why are SynPat’s licenses sold under FRAND terms?
Fair: License fees increase with time as risk goes down due to validation by increasing licensee diligence. Early adopters who fund acquisitions are compensated for their risk and efforts. Reasonable: Prices are determined by the free market – the seller’s asking price is validated when willing licensees collectively fund each acquisition. Non-Discriminatory: Participation in each ad-hoc syndicate is open and available to all at the same price.
Might SynPat’s pricing create an “Established Royalties” problem?
Probably not, for several reasons: (1) If patents are enforced, it likely won’t be by SynPat but by a subsequent buyer not associated with SynPat’s licensing. (2) SynPat sells licenses for fixed prices, not “rates” – prices are a function of supply and demand, unrelated to customer activities. (3) For royalties to be “Established,” they must be paid before infringement began and indicate reasonableness of the rate. SynPat’s pricing mechanism is unrelated to damages calculations.