Intellectual Ventures has stopped buying patents on the secondary market based upon an ‘investor driven decision.’ Removal of this dedicated capital from the market likely means a continued depression of patent prices — especially for patents not directly tied to a product currently on the market.
Although IV is only a small part of the secondary patent market, it filled an important niche for patents not currently being infringed and not purchased as part of a larger business transaction such as a merger, buyout, or technology transfer and license agreement. Rather, IV’s focus has been on aggregating.
Of course, IV will continue to monetize its many assets via enforcement actions as well as sales. Jack Ellis at IAM-Market describes a recent sale of more than 1,000 IV patents to Dominion Harbor. [LINK]
As Ellis writes, “some canny players may see the gap in the marketplace as presenting an exciting opportunity” to buy up patents at a depressed price.