Technology & Invention Commercialization Programs
Divesture of proprietary machinery technology
A small businessman and inventor, Mr Small, had developed and patented a unique machine that could provide production efficiency and cost saving benefits to many businesses. The inventor had been approached by a company that offered to buy the patents and prototype machinery outright, for a lump-sum payment. The inventor was unsure as to the suitability of the offer and felt that the amount being offered "might be too low".
Small, recognizing that the invention could probably be exploited more effectively by a larger company, wanted to explore other options to either license the patent and proprietary design, or alternatively to sell it outright. He had two very different offers from two very different companies, as well as the option of continuing to produce the product himself for profits on a per unit basis.
Vertex studied the marketplace and gained an appreciation of:
- existing equipment and processes used to accomplish the same tasks as Small's technology,
- the benefits of Small's technology, and
- which businesses would make suitable licensees.
Based on our analysis of this information, we provided Small with several recommendations.
Acting on our recommendations, Small was able to sell his patent and prototype equipment to a large multi-national business at a very attractive price and terms. The deal concluded was much better for Small than the first offer tabled.