Allied Security Trust (AST): An Independent Patent Risk Mitigation Cooperative
Allied Security Trust (AST) is an independent, not-for-profit, member-driven cooperative headquartered in the United States, specifically in Berkeley Heights, New Jersey. Its fundamental purpose is to mitigate the risk of patent assertions and litigation for its global membership, which comprises some of the world's most innovative and recognized technology companies. AST operates as a purely defensive organization, focusing on creating a more functional intellectual property (IP) marketplace by proactively acquiring patent rights to protect its members from adversarial patent holders, commonly known as Non-Practicing Entities (NPEs) or "patent trolls."
The organization's unique non-profit, cooperative model ensures that member interests are paramount, spreading the cost and risk of defensive patent acquisitions across a consortium of companies. By pooling resources, AST members can acquire patent rights at a fraction of the cost an individual company would face on its own. AST does not engage in litigation itself; its mission is solely to reduce the risk exposure for its members.
Continue…Core Business Model and Strategy
AST's primary operational strategy is a method known as Consortium Buying or "syndicated patent purchases," built around a "catch and release" model.
- Consortium Buying: This is a cost-sharing model where AST identifies and analyzes patent purchase opportunities available on the secondary market. Interested members then contribute funds to a collective escrow for the purchase or license of specific patents. The costs are collaboratively spread, allowing the consortium to negotiate and secure patent rights more efficiently and cost-effectively than a single entity.
- Catch and Release: After a patent portfolio is acquired, all participating members are immediately licensed to the patents. This action neutralizes the defensive threat posed by that portfolio. After a certain period, which is part of the trust agreement, the patents are then sold or donated, releasing them back into the IP ecosystem or to another entity. This process ensures the patents are used for defensive licensing and not for aggressive assertion.
Products and Services Offered
AST offers a suite of services and proprietary tools designed to support its defensive patent acquisition and risk mitigation mission:
- Consortium Buying and Licensing Programs: The core service, which involves the joint acquisition and licensing of patents to reduce exposure to litigation. This includes the broader Intellectual Property Protection Program (IP3), which handles patent purchase and licensing opportunities, and the Buy-It-Now (BIN) pilot program, a more focused and rapid patent purchase mechanism.
- fAST IP Platform: This is a proprietary, web-based, Members-only system that serves as a comprehensive database of patent assets available for sale or license in the world. The platform contains thousands of patent assets, which are meticulously categorized by technology and product impact, alongside supporting documents, allowing members to quickly and efficiently identify patents of defensive interest.
- Patent and Market Analysis: AST provides sophisticated market intelligence to its members. This includes:
- Regular, detailed assessments of the patent brokerage market.
- Reviews of year-over-year marketing and technology acquisition trends.
- Continual analysis of US Patent and Trademark Office (USPTO) patent assignment records to track who is buying and selling, and the relevant technology categories.
- Due diligence and technical assistance to ensure data accuracy on titles, chain of title, and litigation history for all assets considered for acquisition.
- IP Leadership Forum: AST facilitates a worldwide network and a forum for Chief IP Officers and other IP leaders from member companies to interact, share market insights, and form business relationships, fostering a collaborative approach to navigating the complex patent landscape.
The cooperative has worked with thousands of patent sellers and brokers and, since its inception, has facilitated numerous deals comprising thousands of patent assets, spending hundreds of millions of dollars to acquire patent rights that have helped its members proactively avoid a significant number of litigations.
