Initial Addressable Market of 230,000 Potential Subscribers, or $3.3 Billion per Year
Patent Properties, Inc. (OTCQB:PPRO), an intellectual property company that develops and commercializes its unique portfolio of assets and has introduced a disruptive licensing solution for the mass market of patent owners and users, announced today the release of a report it commissioned by ipCapital Group (“ipCG”) identifying the sizable opportunity for “The United States Patent UtilityTM.” The Utility is Patent Properties’ Big Data-driven software system, currently in beta version, to unlock America’s treasure trove of inventions.
In its report, ipCG notes the current problem plaguing American innovation – that most companies cannot access new innovations or do not fully understand the risks and uncertainties associated with using patented technologies. According to ipCG, there are approximately 230,000 companies in America generating annual revenue between $5 million and $1 billion per year and doing business in the top 10 industries affected by patent litigation. Companies in this revenue range represent the Utility’s initial addressable target market, since they are most likely to need an outside solution for understanding the risks and opportunities in the U.S. patent system.
At an annual subscription fee of $14,400 per year, ipCG concludes the 230,000 businesses represent an initial $3.3 billion per year opportunity for the Utility and Patent Properties.
The report notes that the Utility offers a cohesive service platform to make the economic benefits of America’s 2.3 million active patents available to a much broader universe of inventors and operating businesses. The need for a service like the Utility has become more pressing given the role of patented technology in the U.S. economy and the rising costs of existing market efficiencies.
“The ipCG report clearly demonstrates the immediate market opportunity for the Utility to help patent owners gain access to new potential licensees and licensing revenue, while helping more businesses to tap into new commercial opportunities hidden in the U.S. patent database. Licensors both big and small can now enter into sensible commercial deals that benefit both sides, without the expense or risk of involving the court system,” said Jonathan Ellenthal, Vice Chairman and Chief Executive Officer of Patent Properties. “We’ve said that the Patent Utility is designed to be a broad-based market solution for businesses that are currently frozen out of the current patent system’s benefits due to the high costs and complexity of navigating today’s patent environment. At $3.3 billion per year, the ipCG report puts a real number on the Patent Utility’s marketplace.”
“This report, along with our recently commissioned study, ‘Unlocking Patents: Costs of Failure, Benefits of Success,’ by Brookings economist Robert Litan, which demonstrated that up to $200 billion in output could be added to the U.S. economy by marginal increases in licensing, is a wake-up call for America,” added Mr. Ellenthal. “In combination, both show that the Patent Utility offers the potential, for the first time in the digital age, to unlock huge amounts of American innovation currently on the commercial sidelines.”
The report is public and can be downloaded on Patent Properties’ website at www.patentproperties.com and clicking on the “Investor Relations” section.
