Monetizing non-core assets to enhance revenue and boost liquidity

Challenge: Corporation looking to right-size global patent portfolio

A publicly traded, multinational corporation with a worldwide patent portfolio was seeking to “right size” its portfolio. The company had conducted a strategic review process and identified high-quality patents no longer “core” to its business, and/or in technology areas where it had redundant patent coverage. Due to the complex nature of its global operations, the company preferred to fully divest the patents so to minimize its future involvement.

Solution: Financed divestiture of non-core patent assets

Burford conducted an initial evaluation of the identified patents, then introduced an experienced IP executive and a top patent litigation firm to develop a monetization strategy. After diligencing the strongest assets and strategy, Burford proposed a financed divestiture in which it provided acquisition capital (paid entirely via an upfront payment, as the company preferred), working capital (for the purchasing SPV’s patent maintenance fees, ongoing prosecution and general monetization support), and litigation funding for the SPV’s future legal fees and costs. Burford’s ability to diligence the deal and introduce the capital, team and strategy gave the company confidence the deal would close in a timely fashion and it selected Burford over competing bids.

Impact: Patent maintenance costs minimized without impacting business

The company’s business unit was able to close the sale and book revenue before its quarter end while also eliminating related patent maintenance costs, all without impacting its business relationships. The company also internally vetted Burford as a partner and is now discussing additional divestitures.