Too Much Litigation, Frustrated Patentees and Licensees
Thousands of patent cases are filed in U.S. courts each year despite the fact that damages are awarded infrequently. Since the year 2000, only 1.9% of patent cases resulted in compensatory damages awards. Yet in 2013 alone, 6,092 new patent lawsuits were filed. Clearly, many of these cases involved no significant legal disputes, and could have been avoided but for the parties' inability to find a lower-cost and more efficient alternative.
Disregarded by suspicious prospective licensees, diligent patent owners are pushed to choose between aggressive enforcement through expensive, risky, and lengthy litigation, and sale of their patents for pennies on the dollar, barely recovering prosecution expenses.
Taken advantage of by opportunistic entities, operating companies are forced to pay inflated fees for needless licenses, acquire pricey patents in lieu of simple non-exclusive licenses, or worse, passively bear the risk of injunctions and damages.
Patentees are fully rewarded, Licensees pay reasonable prices
SynPat revolutionizes the way patent licensing is done. Traditionally, patent licenses were custom made, involving lengthy, complex, and expensive negotiations. Following the concept that buying a suit at a department store is easier, quicker, and cheaper than having one made by a tailor, SynPat treats patent licenses as a commodity: accessible to all, under standard terms, and at prices that are set by a free and open market.
License prices increase with time as risk goes down due to validation by an increasing number of existing licensees. Participants enjoy not only a discounted rate, but also receive significant compensation for their risk, efforts and leadership.
Prices are determined by the “invisible hand” of the free market: the seller’s upfront asking price is validated (or not) when willing licensees collectively fund each acquisition.
Participation in each ad-hoc syndicate is open and available to all, at the same price. Since licenses are available at any stage of the Program, it is up to each company to choose whether and when to acquire a license under each portfolio.