Avistar Communications Closes Transaction with Intellectual Ventures Management

Avistar Communications, a developer of unified visual communications solutions, announced that it has closed an agreement with Intellectual Ventures Management, a provider of invention solutions and services for businesses, to sell the majority of its patents as part of a strategy to monetize its patent portfolio and continue investment into its product business.

"The transaction with Intellectual Ventures is an important milestone for Avistar," said Bob Kirk, CEO of 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. This transaction allows us to find the right vehicle for these patents to be represented in the market."

"Working with a company like Avistar allows Intellectual Ventures to demonstrate how our business model helps companies identify new ways to monetize their patent portfolios," said said Peter Detkin, Intellectual Ventures founder and vice chairman. "Our experience doing 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."

According to the companies, highlights of the transaction are as follows:

-Avistar receives an upfront payment of $11 million. This allows Avistar to further invest in its product strategy and reinforces its cash position.

-Avistar receives a full grant back license under the portfolio ensuring that its products are protected under these patents.

-Avistar is no longer adverse to the firms that it has previously put on notice.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Related terms: business, ceo, communications, environment, investment, market, patent, products, technology