Tonight, I suggest reading Richard Finger of Forbes New IP Company Marathon Patent Group Promises Diversification Amid Risky Environment.
As stated in Forbes, the Marathon Patent Group has a distinctive strategy:
"Although Marathon Patent Group certainly carries its share of risks, like any small company, it is undeniably differentiating itself in the patent sector. Most IP enforcement and licensing groups are focused on big-dollar patents, recruiting a law firm on contingency, and then awaiting their luck in the courtroom or negotiation table. There have been notable success stories, such as Vringo (VRNG) and VirnetX Holdings (VHC) with their well-publicized lawsuits against Google and Microsoft. Yet these companies (and there are many others like them) have no predictable cash flow. They receive a jolt of cash at random times, but it is very difficult, if not impossible, to place an ongoing enterprise value onto these companies. Mr. Croxall, in contrast, by purchasing patent portfolios with proven licensing history, will create some predictability for his company. Likewise, if he can acquire enough performing portfolios, then there will be sufficient diversification such that no single court case or licensing event will hurt his earnings needle significantly. Moreover, the consulting division of Marathon Patent Group will also be producing a stream of revenue- entirely independent from litigation. As a consultancy, it simply charges advisory fees. Thus, although Marathon Patent Group operates in an IP sector that has traditionally defied valuation metrics, with predictable earnings, it could prove to be a more stable company."
I have no relationship with Marathon Patent Group nor with the author of the article, but liked the article's details regarding a patent monetizing model that may become more popular in the future.
Copyright © 2014 Robert Moll. All rights reserved.
