Uber launches a new patent purchase program to boost its IP portfolio

In a bid to enhance its patent library, Uber has launched a new patent purchase program, called UP3, to expedite the process of purchasing patents. The application window is open from April 24 to May 23, 2017. This means Intellectual Property owners will be able to propose a price that they are willing to take for their particular patent. Once they do so, Uber will have the option of either accepting or decline the same.

The whole process is expected to be around 4 months long which is a significant improvement from the amount of time a patent acquisition process is usually expected to take.

"It is a buying program intended to really eliminate the friction of the secondary patent market. So the typical secondary patent market is challenging, valuations are difficult to identify for both buyers and sellers. Sellers tend to start out really high and buyers tend to start out really low, and negotiations can take years instead of months. So what this program really does is smooth that out. The buyer, in this case, Uber, gets one price from the seller – they have to give us one price they’re willing to sell for, no negotiations – and the seller gets speed to close," Uber’s Patent Transactions Lead Kurt Brasch told TechCrunch.

However, some patent owners might not be happy with the nature of the program as it leaves little room for negotiations. While others may rejoice to sell their efforts much quicker.

Uber previously participated in the IP3 patent program, which was run by Allied Security Trust and involved cross-licensing resulting IP across a consortium of companies. The UP3 program is designed specifically for purchase with resulting ownership by Uber, as opposed to licensing.

Uber has already been attempting to grow its patent portfolio through a slew of engineering teams that are working to come up with new IPs. This new program is an aggressive push in the same direction that will see the cab aggregator leverage its money to acquire patents and help it grow its patent library much faster.