Patent Owners (Publishers)
A: Publishers have the opportunity for their patents to become the most highly rated patents in a PatentBook since the tiers are populated from the Tier 1 on down. Early Publishers are guaranteed their patent’s position in the top tiers for one year from the first Subscriber payment and PatentBooks distribution. Early Subscribers and Publishers both have the option to join the Advisory Board of that PatentBook for one year, too.
A: Nothing. Any patent owner may publish a relevant patent to a PatentBook free of charge. All patents published for free are listed in Tier 3.
A patent owner is encouraged to evaluate his own patents against the TAEUSworks™ criteria. If his patent looks promising, formalizing the TAEUSworks™ evaluations that it can be validated (for a fee) can launch his patent into either Tiers 1 or 2, opening up a far greater revenue distribution.
A: All patent owners are paid a share of the licensing income distributed by the PatentBook. Payment size is based on the quality of the patent. A validated TAEUSworks™ patent evaluation determines the placement of a published patent into one of the following three tiers for payment distribution:
- Tier 1 consists of the top 2% of all the patents in the PatentBook by patent quality. Tier 2 patents uniformly share 50% of the total distributions.
- Tier 2 consists of 13% of all the patents in the PatentBook as determined by patent quality. Tier 2 patents uniformly share 35% of the total distributions.
- Tier 3 patents, comprising the remaining 85% of all patents in the PatentBook, uniformly share the remaining 15% of all the money distributed.
The PatentBook quality and value distribution mirror that of nearly all patent portfolios, regardless of the technology, product or ownership.
Patent owners who Publish their patents to a PatentBook are paid via electronic funds transfer (EFT).
A: All published patents are automatically placed in Tier 3 as a default. TAEUSworks™ is used to evaluate and validate superior patents for placement into one of the top two tiers. TAEUSworks™ provides strict criteria for multiple human subject matter experts to provide their technical, legal, and economic opinions on the merits of the superior patents. TAEUSworks™ evaluations may be performed by the patent owner or a certified TAEUSworks™ third-party evaluator. The TAEUSworks™ evaluations provided to the PatentBook Administrator must be validated by the PatentBook Administrator prior to placement into one of the top tiers.
A: The major advantage Publishers experience via a PatentBook is receiving royalties from many more licensees than they ever would via bilateral licensing or litigation strategies. PatentBook licensing income is initially all incrementally additive, not duplicating or replacement other licensing income. For example, the LCD PatentBook addresses a market with 2000+ LCD suppliers. If an LCD patent owner has 20 bilateral licenses and is pursuing litigation against 10 other users, 1,970 companies that are potential sources of royalties which are not currently being addressed by the patent owner, i.e. potential Publisher, without the expense or risk of patent litigation.
PatentBooks also encourages its Publishers to continue their existing bilateral licensing and litigation strategies.
- Existing non-exclusive license agreements remain in place.
- Patent owners and users may indicate companies with which they would like to negotiate separate license agreements in the future
- Patent owners and users may also indicate any companies with which they currently have litigation or which they intend to pursue in litigation in the future.
In all such cases, patent owners and users need only provide the names of such companies to the PatentBook Administrator, who will remove royalties paid by the targeted companies, to avoid double-counting.
Moreover, PatentBook licenses are fundamentally different than those negotiated in bilateral agreements.
- PatentBook licenses are royalty-based only for a product or transactional unit. Bilateral licenses often cover numerous products over many years, opening up potential audit issues.
- The pricing structure for PatentBook licenses is a “buffet” pricing model, i.e. one price per transaction unit licenses all of the patents in the PatentBook. PatentBooks sets its price based market conditions acceptable to patent owners, patent users, and consumers. Bilateral licenses often require up-front payments plus royalty payments, much of which is detached from actual commerce.
- By allowing the licensing of all patents necessary to supply a product or service, PatentBooks avoids the “royalty stacking” problem common when royalties paid to different suppliers must be cumulated. Bilateral licenses only cover patents from one company, not hundreds or thousands of companies.
The PatentBooks royalty price is open to the public, and likely to be different from all other bilateral or patent pool licenses, since a vastly greater number of patents are licensed in a PatentBook transaction versus a bilateral or patent pool license. Bilateral license terms are usually confidential.
A: Publisher distributions occur quarterly once the PatentBook begins accepting payments from Subscribers.
A: Publishing patents in a PatentBook is, and always will be FREE. Non-evaluated patents are automatically placed into Tier 3.
A: No. PatentBooks is a non-exclusive channel for licenses. Publishers still retain all rights of ownership. PatentBooks opens up an additional licensing channel. Publishers are free to license to any other parties.