Heritage offers two ways to monetize your Patents and Trademarks depending upon your circumstance, Auctions and Brokerage.
Auctions are the sale methodology of choice when there is an urgent time component in which the sale must take place. This is frequently the case in sales overseen by the Bankruptcy Court. Heritage Global Patents & Trademarks is well versed in successfully navigating the complexities and the requirements of sales under Bankruptcy Court supervision. Auctions are the epitome of “Date Certain Events”. There is nothing in the world that focuses the attention of the marketplace like an Auction. Buyers know they must act or miss out on the opportunity.
This is not to suggest however that sales under “Forced-Sale” conditions are the only reason to select a Patent Auction as the sale methodology. Very much to the contrary, auctions contain a series of dynamics that are very favorable to Sellers when it is clear there is demand to acquire the IP, and an auction serves as fair notice to all that they will be participating in a competitive bidding environment.
HGPT offers two types of IP auctions based upon the specifics of the circumstances:
- Sealed-Bid Auction – A Sealed-Bid Auction establishes the date by which prospective Bidders must respond. The Sealed-Bid Auction may have either a Published Reserve Price, or an Unpublished Reserve Price. Bidders have no visibility as to what their competitors are bidding due to the “Sealed-Bid” nature of the auction, nor do they have a chance to revise their bid once the bid deadline has passed, thus requiring them to go “all-in” with their best bid.
- Online Auction – An online auction is conducted on the our platform. Sellers may elect either a Published Reserve Price or an Unpublished Reserve Price. Bidders will see the bids made by other bidders and can react and raise their bids accordingly until the end of the auction. If bids continue to come in at the pre-established time to close the auction bidding will continue until such time as no subsequent bids are received after a 10 minute expansion of bidding time.
Brokerage is ideal for those who desire the benefits of the focus brought by a date certain event but who have greater flexibility in terms of when the sale must be completed. Prospective Buyers must nevertheless act expeditiously or run the risk having another party act with greater decisiveness and taking the property off the market before they have even submitted an offer. If they wish to ensure their chance of acquisition they must ACT, or lose out on the opportunity to another Buyers who has acted with greater urgency.
What pricing protection do I have as a Seller in Auctions and Brokerage?
Sellers in both Auctions and Brokerage retain pricing authority by means of the “Reserve Price”.
The Reserve Price is the price below which the Seller is not obligated to sell. The Seller may choose between a “Published Reserve Price” meaning the Reserve Price is disclosed as part of the offering, or an “Unpublished Reserve Price”, meaning the Reserve Price is not disclosed as part of the offering. Heritage Global Patents & Trademarks will discuss the circumstances underlying the sale with the Seller and will offer guidance in the selection of Reserve Price methodology.
The advantage of a Published Reserve Price is that it simultaneously provides price protection to the Seller and conveys a reasonable idea to prospective Buyers of what it will cost to acquire, and therefore serves as encouragement to conduct their Due Diligence and make an offer.
The advantage of an Unpublished Reserve Price is that provides the Seller with maximum price protection, but it may discourage Buyers who may be unwilling to conduct their Due Diligence without a ballpark idea of what it will take to purchase the Patent.