When a company faces financial difficulties, it may be placed in liquidation and forced to sell its assets, including its patents. In practice, patents are auctioned during a liquidation process by a judicial officer. Patents can be sold in packages or individually, depending on the circumstances. The organization of the packages can also be part of a strategy to facilitate the sale of one or more patents.
Generally, patents are put up for auction at a reserve price, which typically corresponds to their book value or their accounting valuation if they are being exploited. Patents are sold without any guarantees, so it is important to ensure that the patents for sale are active, and if not, that they can be reactivated through a restoration procedure. Liquidation is a legitimate excuse that allows for restoration.
After this initial assessment, it is necessary to evaluate the value of the patents to prepare for each auction. What is the scope of the patent? Is it essential ? What is its lifespan? What kind of exploitation is envisaged? All these parameters help assess the legal value of the patent.
To this legal value, you must add the auction-related taxes (between 15% and 20%) as well as the registration fees in the name of the buyer. Once the potential buyer has determined his maximum bid, the auctions open, and one must act quickly if a patent is contested and the bidding escalates.
Once the auction is won, a purchase slip is issued by the judicial officer, which serves as proof for registration with the various national registers. If patent rights need to be restored, it is necessary to request the restoration as soon as possible.
If you are considering acquiring patents or trademarks during a liquidation, ARGYMA has the expertise to assist you.