IP monetization takes still another twist as this acquisition feels more like a license to sue

On September 1, MOSAID Technologies, Inc., a Canadian non-practicing entity, announced it was taking control of 2,000 Nokia-filed patents by acquiring Core Wireless Licensing S.a.r.l.  The acquisition will be funded entirely through royalties from future licensing and enforcement revenues from the acquired patents.

MOSAID will record all revenues from the future royalty stream and enforcement awards.  Core Wireless, acting as a subsidiary of MOSAID, will retain one-third of the gross royalties from future licensing and enforcement and will bear all of the costs associated with the administration.

The remaining two-thirds of the revenue stream find their way back to Nokia and Microsoft, according to John Lindgran, CEO of MOSAID.

In summary, MOSAID takes over the monetization of the patents through licensing and enforcement actions, including all related costs. No money exchanges hands up front. MOSAID take a third of the revenues from their monetization efforts, and Nokia and Microsoft share the rest. Nokia has created an outreach program to farm out prosecution of selected IP on a pure revenue-share basis.