Investment focus
EIX strategically acquires ownership of Technology Solutions, including the associated patent portfolios, and actively licenses the portfolios to the relevant entities through a membership-based platform. To enhance the overall license value, the portfolios may be further developed for increased technological scope and/or they may be combined with other acquired portfolios for broader market relevance. This business model and the asset class are proven in other markets like the US and Asia and it is EIX’s intention is to develop it further with a focus on European companies.
With respect to acquiring the Technology Solutions, EIX has a competitive advantage in creating deal flow through our robust and extensive international network which has been established through 20+ years of professional interactions. The network includes all the key players in the market, such as Technology Solution owners, brokers, advisors, investors and financial institutions.
EIX selectively identifies and proactively engages international Technology Solution owners, with a focus on European companies, who own high-quality patent portfolios in our technology areas of interest.
EIX is also constantly in contact with leading brokers throughout the world who can provide even more comprehensive access to Technology Solution owners and valuable patent portfolios.
As an additional measure, the EIX team scans the various open platforms which offer patents for sale, such as IAM Markets, IPwe and Ocean Tomo, to identify any other potentially relevant patent portfolios.
The deal flow will continue to strengthen as EIX’s investment offering expands in the market.
EIX conducts a thorough due diligence and valuation of the most potentially lucrative patent portfolios associated with the Technology Solutions, including those portfolios which are considered de-facto standards that dominate the applicable market. Our team’s expertise, proficiency and network are key in the portfolio acquisition process as identifying the patents with the highest value from a vast portfolio is an arduous and crucial task. The acquired portfolios will only be of the highest quality, uniqueness and strength (“AAA”). Consequently, the portfolio acquisition price may be relatively high with respect to the overall market. This AAA standard is one way to balance and limit the risk in the acquisition and it increases the potential for enhancing the overall license value through portfolio development or combination with other acquired portfolios.
The EIX model considers the needs of all stakeholders so that win-win solutions are provided in every transaction. Investors, members/licensees, and Technology Solution/patent portfolio owners all benefit from our investment fund based on our membership-based platform for Technology Solutions, secured by patents and other IPR.
Investors have the opportunity to receive high return on their investment in a short investment cycle with balanced risk. Read expanded section of specific benefits to investors in Overview.
Members/Licensees have the opportunity to gain access to relevant patent portfolios and to implement Technology Solutions in an expeditious and cost-effective way. In this fast-changing world with new innovations and technology convergence, patent licensing is many times the only way to be able to operate, both financially and legally.
Technology Solution/Patent Portfolio Owners have the opportunity to monetize some or all of their IPR/patent portfolios in return for financial proceeds and to gain access for exploring synergies within our network.
It is EIX’s belief that European companies, along with their US and Asian counterparts, have great potential to capitalize on the opportunity presented by EIX. Therefore, EIX strives to encourage and assist European companies to identify Technology Solutions that can be monetized and not regarded as a strategic investment or a cost. Launching European innovations into the global market is a main objective of EIX. Technology Solution/patent portfolio owners are recognizing that their investments in IPRs have little value sitting on the shelf and that patents can be used not only defensively, but also as a source of profit generation. This is particularly enticing for monetization of non-strategic patents or even subsets of strategic patents. There are many reasons for selling patents, such as:
- A change in product, market or business strategy
- Alleviation of cash-flow issues
- Inclusion with another transaction
- Divestiture of a surplus of patents in a particular technology area
In most cases, the Technology Solution/patent portfolio owner retains a right to use the patents after the sale transaction.
EIX’s plan is to establish the asset class in Technology Solutions in Alternative Investments in Europe and make it available for investors.