New revenue while pivoting the core business

Challenge: New revenue streams needed to change business focus

A technology company was pivoting to a new business focus and sought new revenue streams to bridge the transition. The company had valuable patents in its portfolio but no expertise in patent monetization. Further, the company wanted to avoid the cost and distraction of litigation, including potential countersuits, so it could focus on its new business direction. 

Solution: Divestiture of key patents with minimal risk

Burford worked with the company to develop a monetization strategy that allowed the company to realize value for its patents, while being insulated from the costs and risks of litigation. Key patents were divested into a special purpose vehicle (SPV), and Burford introduced an experienced monetization professional to run the campaign and brought on top-notch counsel to litigate against infringers. The company opted to not receive an upfront payment for its patents, but rather retained the right to a majority of proceeds achieved through the monetization. Burford provided the funding for the SPV expenses and legal fees and costs associated with the monetization strategy. Due to the divestiture and transfer of control to the SPV and its manager, the company had minimal countersuit risk.

Impact: Business transition prioritized without facing countersuit

The company paid nothing for the SPV or the litigation, avoided a countersuit and received the benefit of an expert monetization team, all while focusing on its core business transition. The monetization team litigated the company’s patents to a trial victory. The company is now exploring additional monetization opportunities with this team and additional patents.