Avistar Communications Corp. announced that it has closed an agreement with Intellectual Ventures Management to sell the majority of its patents as part of a strategy to monetize its patent portfolio and continue investment into its product business.
Avistar is receiving an upfront payment of $11 million, and a full grant back license under the portfolio ensuring that its products are protected under these patents.
“The transaction with Intellectual Ventures is an important milestone for Avistar. The U.S. patent market has created a challenging environment for a company such as Avistar to effectively monetize the full value of its portfolio,” said Bob Kirk, CEO of Avistar. “This transaction allows us to find the right vehicle for these patents to be represented in the market. It allows Avistar to focus on what we do best, that is deliver industry-leading and award-winning products to our partners, clients and the visual communications industry. This also removes what has been a significant distraction for the team and our operation in general, while providing us the capital to more aggressively invest in our business.”
“Working with a company like Avistar allows Intellectual Ventures to demonstrate how our business model helps innovative companies identify new ways to monetize their patent portfolios,” said Peter Detkin, Intellectual Ventures founder and vice chairman. “Our experience doing sophisticated deals, like the one with Avistar, not only benefits customers with complex IP needs, but it also benefits technology companies who need access to inventions such as the ones Avistar has created.”