UB3: Uber's New Patent Purchase Program

Uber has launched a patent purchase program called, “UB3.”  The program sounds very similar to the one founded by Google and run by Allied Security Trust.  Indeed, the announcement by Uber references the Allied Security Trust program, “IP3.”  The development of the program arrives during Uber’s much publicized suit involving Google.  Interestingly, this is perhaps a move by Uber to build a patent portfolio to be used in acquiring negotiation leverage, and thus freedom to operate.  Additionally, the value of some patents may be rising because of changing Federal Circuit law and the belief that the Patent Trial and Appeal Board at the United States Patent and Trademark Office is easing up on patents, so to speak.  Uber’s press release states:

The current market for patents is extremely challenging, especially for sellers. There is a ton of friction in the secondary market for all parties, but with our new UP3 program, sellers will submit patent family details and a price they are willing to accept directly into our submission portal. By eliminating price negotiations and providing quick reviews, UP3 will reduce the total transaction time compared to a typical patent transaction.

It is also clear that sellers want the flexibility to package multiple patents into a single submission. That’s why the UP3 program allows sellers to submit portfolios of up to five (5) patent families in one submission. That way, sellers can group patent families that complement each other in a way that best markets their assets.

Our short timeline will speed up patent transactions. The UP3 submission portal opens April 24, 2017 and closes May 23, 2017. After the submission period ends, Uber will review the submissions and provide sellers with our decisions by July 7, 2017.

The Uber website includes helpful frequently asked questions with answers, the patent purchase agreement, additional information, and submission terms and conditions.  The submission form will be available on April 24, 2017. 

IP3—The Industry Patent Purchase Program: Google and Friends Want to Buy Your Patents (Maybe, Again)

This blog recently covered Google’s Patent Purchase Program, here and here.  Google basically offered to consider purchasing submitted patents.  The Program is back, but this time expanded with a new group of players under the title, “IP3 by Allied Security Trust.”  Here is the announcement:

Calling all patent owners – some of the world’s largest companies including Google, Apple, IBM, Microsoft, Facebook, Adobe, SAP, Ford, Honda, Hyundai, Kia Motors, Verizon, Cisco and Arris want to buy your patents!

IP3 is a marketplace that offers patent owners a quick and easy way to access the secondary market and receive fair value for their patents.

For a two-week period, patent owners with great patents can submit their patents for consideration by leading multinational companies representing more than $2.5 trillion in combined enterprise value.

Starting May 25, 2016, through June 8, 2016, patent owners can submit their patents to the IP3 portal at a price they set. AST will then review the submissions, and if one or more of the participating companies are interested in funding the purchase, submitters will be notified by July 29, 2016.

Participants in IP3 include a wide array of industries including enterprise software, automotive companies, cable providers, networking communications equipment, semiconductor manufacturing, information technology and location-based services.

IP3 builds on the innovative approach taken by Google with their successful 2015 Patent Purchase Promotion (PPP), offering patent owners access to a well-funded buying consortium with no haggling. We created IP3 to try an innovative way to simplify patent owners’ access to the secondary market by eliminating the common hassles associated with it – like the need to prepare claim charts.

In short, patent sellers need to only identify the patent family and price at which they are willing to transact, IP3 does the rest!

There are several buying categories: Computers and Software; Consumer Electronics, Communications; Semiconductors & Components; Healthcare/Medical; Automotives; Lighting; and Financial Services.  The submission form will be available, here.  The terms and conditions sheet is available, here.  The license agreement is available, here.  And, if you miss the deadline, you can always contact Allied Security Trust—“Trust in Us -- Minimizing Threats from Adversarial Patents.” It will be interesting to see how much information is disclosed about the outcomes of the program.  Notably, the license agreement has “Confidential” stamped all over it.  I wonder what valuations may look like post-Enfish.  I am also curious to see IP Draughts Mark Anderson’s analysis of the agreement. (I thought his analysis of the prior license agreement was very helpful.)  [Hat tip to Professor Lucas Osborn of Campbell University Norman Adrian Wiggins School of Law]