Unit License Rights

Unit License Right™ ("ULR") contracts provide use of select patented technologies via standard form licenses on publicly viewed terms. ULR contracts address the current inefficiency of technology transfer including the time, expense, redundancy and uncertain outcome of traditional bilateral licensing negotiation. The Intellectual Property Exchange International ("IPXI") serves as the intermediary between the patent owner(s) and potential licensees. IPXI is authorized to market the IP licenses and facilitates one or more offerings of consumable "license rights." Each ULR contract purchased gives the buyer the right to use a pre-established unit of IP, for example the right to make and sell up to an established quantity of products covered by the patents in question. IPXI is responsible for auditing consumption of the units and publicly reporting this information. Importantly, in the event of infringement, IPXI is usually responsible for enforcing the rights under the patent or other IP.

The ULR contract market overcomes the inefficiencies of traditional bilateral licensing by providing:

Contract standards
Efficient distribution model
Market transparency
Price discovery
Consistency in enforcement strategy

The IP owner assigns or exclusively licenses the IP to IPXI under a standard contract, granting IPXI the authority to sub-license the IP to ULR buyers and usually the right to enforce against infringers.

IPXI publishes offering documents. It hires separate marketing and enforcement teams to solicit ULR buyers and conduct the offering. Upon completion of the offering, IPXI distributes proceeds to the IP owner and the license rights to the ULR buyers. All ULR buyers must sign a standard contract with IPXI governing the terms and conditions of the transaction.

Unit License Right™ contracts also serve as a further capital markets activity replacing traditional debt or equity capital.

Benefits: Licensor

Efficient monetization of patent portfolios
Dramatically reduced legal fees
Avoidance of forced cross-licensing
Outsourced marketing
Outsourced auditing
Outsourced enforcement
Timely reports on licensee usage
Market-determined fair and reasonable licensing terms
Flexible rights structure

Benefits: Licensee

Fully paid-up and easily obtained licenses to patent portfolios
Immediate control over purchasing decisions, with future uncertainty limited to price only
In-licensing contract standards
Ability to resell unused ULR contracts to accommodate reduced future needs
Fair and level playing field for all prospective licensees
Formal mechanism for licensees to request that IPXI investigate alleged infringement

IPXI ULR contracts are covered by U.S. Patent Appl. Ser. No. 11/405,166 and U.S. Patent Appl. Ser. No. 12/355,530.

If you would like to acquire more information about ULR contracts, please contact:

Gerard J. Pannekoek

CEO
IPXI Holdings, LLC
p: 312.377.4833
e: gpannekoek@ipxi.com

ULR Details

The ULR product offers companies a cost-efficient method to monetize their IP and outsource audit and enforcement responsibilities.

ULR Documentation

ULR FAQ