Intellectual Property has real value, and can be monetized. One of the best ways to raise money for a growing business is to sell intellectual property and lease it back, funding a large lump sum to use in the business without losing control of the assets that make up the business.
In a lease-back scenario – we will buy your patent or group of patents for a determined price. We will then lease back rights to use those patents for business activities in return for interest payments or royalties. We hold these patents as owner until the termination date is reached as specified in the contract, after which the IP would either revert to the original owner, or remain in our hands as the buyer to renegotiate additional fair use.
An additional benefit is that this Sale-and-Lease-back model provides the opportunity for improving a company’s rating, which in turn would facilitates less expensive raising of additional new capital. By moving value from inanimate objects such as patents and trademarks into cash, the balance sheet certainly and positively improves.