Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


IPXI provides market-based approach to intellectual capital

Performs research and creates commodities market for patents

Gerard Pannekoek of IPXI

One way to monetize intellectual property assets is to license patents to others. Unfortunately, this process is far from efficient, and lacks transparency. That’s why a group of IP experts banded together in 2007 to form IPXI, with the goal that it could help create a level playing field, focusing on establishing quality patent portfolios and establish a fair price for them. 

To do this, they would form a marketplace.

As an example Gerard Pannekoek, president and CEO of IPXI, says, “One of our first offerings was from JPMorgan, relating to 20 patent assets in the technology space for value cards. There are 135-150 potential licensees for this technology. In a traditional model, JPMorgan would have to approach each and every potential licensee and have individual discussions about patents, value propositions, etc. Those can take years and end up with a cross-licensing agreement. This goes against the notion of IP as an asset class that you can generate revenue with. More and more companies are starting to realize that they have no indication of whether they have competitive licensing terms in relation to their competition.”

In the IPXI model, JPMorgan would bring their portfolio to IPXI, which would determine using their own research the strength of the patents and the demand for the technology in the marketplace. Then, IPXI would hold what is essentially an IPO, and potential licensees could learn of the merits of the technology and purchase unit license rights. After the closing of the initial offering, these rights can be traded in a secondary market.

The process is designed to ensure that all patents listed are high quality, that the technology is something that the marketplace desires, and that it is priced according to its true market value, rathen than by the IP owner.

IPXI offers other features, like an amnesty program and a membership structure, but its founders are attempting to address the true value of intellectual property by treating it like another commodity and letting market forces drive its value, adding transparency and efficiency to a process that was severely lacking those two qualities before.

For more on intellectual property, check out the following:


IP: Understanding and tracking your IP assets

Intellectual property in the Global Enterprise

Intellectual prosperity: Growing, monetizing and protecting intellectual property

Senior Editor and Community Manager

author image

Rich Steeves

Richard P. Steeves is Senior Editor and Community Manager of InsideCounsel magazine, where he covers the intellectual property and compliance beats. Rich earned a B.A....

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.