Understanding AST’s IP3, and How to Optimize Your Submission

Patent holders looking to monetize their IP may already be familiar one of the more established players in this space, Allied Security Trust (AST). AST was established to help tech companies reduce their exposure to patent-related litigation and other risks. Its core mission is to acquire patent rights relevant to its members’ business interests, especially before those assets can be used in adversarial proceedings by the patent owners or litigious IP rights enforcement groups.

Its membership includes many of the world’s leading technology companies, particularly those in sectors like consumer electronics, networking, cloud services, and semiconductors—such as Google, IBM, Intel, Cisco, Meta, Microsoft, Oracle, and so forth. AST is a non-profit and each member contributes to operational funding and helps determine which assets are worth pursuing based on their own portfolio strategies, product roadmaps, and perceived risk exposure.

The organization takes submissions for patent portfolio opportunities on a rolling basis. In this regular course, patent owners or their brokers submit portfolios to AST, who then securely shares them among its members for their evaluation. If one or more members are interested, AST may submit a bid on their behalf (though the identity of the member or members is only revealed after all the deal paperwork is signed).

What is IP3 and how is it different?

The Industry Patent Purchase Program (IP3) is a limited-duration, deadline-driven initiative that AST runs in the summertime months. Each year during a limited submission window, AST invites patent holders to submit their patent packages for consideration. Sellers specify a firm “take it or leave it” price for their patents, and AST shares all of the supplied information for their members’ review. Unlike traditional bilateral negotiations, where timelines are generally open-ended, pricing and terms can fluctuate (and potentially derail the process), and the buy-side diligence cycle can be drawn-out, IP3’s format helps to accelerate and synchronize their members’ review, eliminates negotiation friction, and then works hard to prioritize post-acceptance diligence to close a deal within a matter of weeks.

For patent owners with high-quality assets, IP3 can offer a relatively quick and transparent path to a sale, even as compared to AST’s standard year-round process. It allows exposure to a host of well-capitalized buyers without needing to attempt to approach contacts at each one individually, and it also increases the likelihood that multiple member companies can aggregate their expressed buying or licensing interest to AST within the compressed submission and review period, sufficient to reach the seller’s asking price.

That said, it is not always the best fit for every portfolio. The lack of negotiation and the relatively short review period mean that highly complex, high-value portfolios may be better suited to the traditional AST channel or to a broader licensing campaign. In addition, because IP3 operates on a fixed-price model, sellers who set prices too high are likely to receive no interest, while those who set prices too low may see their offer accepted, but also risk undervaluing their IP.

Optimizing your IP3 submission for success

How does a patent owner improve the odds of a successful sale or license? Whether participating in IP3 or submitting patents directly to AST, preparation and presentation matter significantly. While not required, providing detailed technical summaries or evidence of use can dramatically increase the odds that a submission will catch the attention of one or more buyers. AST members are often interested in patents that are technically sound and commercially relevant—those that read on their products or could pose future litigation risks.

To increase the likelihood of a successful transaction, patent owners should:

– Focus on technologies aligned with AST members’ business areas.

– Provide evidence of relevance, such as claim charts or product mappings.

– Price assets realistically.

– Ensure the chain of title is clear and up to date.

For IP3 specifically, sellers should keep in mind that members are reviewing many submissions in a short time frame. Clarity and relevance can make the difference between being selected or overlooked.

Working with a specialty patent broker can provide important advantages for patent owners considering participating in IP3. They may have insight into the interests of specific AST members and understand how to tailor a submission to meet those needs. They can also effectively package portfolios and produce convincing claim charts that articulate their value, and set pricing expectations that are transactable range while still maximizing the return to the patent owner.

Moreover, brokers typically have relationships with multiple buyers—including but not limited to AST and its members—and can present a portfolio to the right stakeholders at the right time. In some cases, they may also help with licensing strategies or explore other monetization paths, such as litigation financing or enforcement campaigns, depending on the seller’s goals and risk tolerance.

While brokers do charge commissions for successful transactions, the value that a highly skilled broker like Vitek IP can add will far outweigh that cost, especially for portfolios of high quality and high potential value. Most patent owners seeking to monetize their assets are new to the relatively niche IP transactions market and unfamiliar with how corporate patent buyers operate, and as our clients can tell you, working with expert brokerage services like Vitek IP’s can be invaluable.

Our team brings deep experience, having collectively handled hundreds of transactions totaling hundreds of millions in value, engaging with a wide range of buyers—from defensive aggregators to operating companies and investors. We understand the nuances of the patent market, including evolving buyer interests, valuation trends, and the art of positioning a portfolio to capture attention.

Leveraging our market expertise and thorough strategic approach, deep professional network, and world-class work product, we ensure your assets reach the right buyers of interest and command a maximal market value.