February 2, 2018
Why patent block financing is superior to debt financing
Patent blocks offers companies and their CFOs an opportunity to capitalise patent portfolios and increase internal liquidity at a lower cost than debt financing - without dependency on external lenders
by Stefan Ionescu
The economic value of patents used to be difficult to assess and utilise - until now. With patent blocks, companies can capture the real market value of patent portfolios without selling their most valuable intellectual property to one party and potentially risking that their competitors gain ownership of their most prized possessions.
Patent blocks are the ultimate financing tool for CFOs
Stefan Ionescu - Managing Director, Smartillions
Why patents are the perfect underlying assets for the blockchain economy:
In addition to these benefits, a company can benefit from the market capitalisation of its patent blocks:
Based on improved financial results, the issuance of patent blocks can potentially increase a company's stock price and therefore benefit all of its shareholders. It also allows a CFO to decrease a company's debt and therefore reduce cost and dependency on external lenders.