How Does A Patent Syndication Work?

How Does A Patent Syndication Work?

Patent Syndication Flowchart

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The Patent Syndication model is very simple.

1:  A patent owner decides to syndicate their patent in a country/s other than their own.

1a: (Optional) Patent Owner conducts a valuation by a licensed independent valuation professional to determine the current valuation of your IP and its future potential value once granted and its value once licensing agreements have been created.

2:  An approved Patent Syndicator is selected by the patent owner and the Syndicator creates the Patent Syndication. The total number of shares in the patent syndication can vary but typically with a maximum of 50 syndication shares.

3:  The Patent Syndication opportunity is marketed / promoted by the syndicator to potential shareholders and Expressions of Interests are requested.

4:  Upon full subscription of the Patent Syndication shares the Patent Syndicator with the inventor / patent owner assistance starts the PCT national phase process of filing the patent in their country at their local patent office.

5:  Once the patent is filed, the Patent Syndicate shareholders (including the patent owner and patent syndicator) can;

  • Do nothing and just hold on to their share/s for a future potential capital gain.
  • Set up a licensing arrangement and receive royalty income from the right they hold for each patent syndication share they own in the relevant country.
  • Utilize the intellectual property in their business or for personal reasons.
  • Start trading their shares with other shareholders or prospective shareholders.

6: Once the patent has received granted status from the patent office, the Patent Syndicate shareholders can;

  • Sell the entire patent as a group covering all countries through patent broker or through a private buyer.
  • Sell their patent syndication shares to existing or new shareholders.
  • Facilitate or renegotiate higher licensing agreements based on the strengthening of the patent to granted status.
  • Do nothing and just hold on to their share/s for a future potential capital gain.
  • Continue to utilize the intellectual property in their business or for personal reasons.