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Medical Patents Broker Inc.
By Kenneth Pearce, President
In the world of medical patents, reaching an agreement on price and terms is a massive milestone. Whether it is a straight sale, a strategic license, or a hybrid transfer, both parties finally see the finish line.
The Problem
Will the handoff become a standoff? This can easily happen when millions of dollars are on the table.
The transaction contract contains written promises applicable to both parties. Some agreements speak in thousands, some in millions, and some in billions. Today, US dollars are a language the entire world understands. Because of this, when the transfer of high-value capital is involved, an airtight written agreement is an absolute necessity.
A common situation arises: The parties trust each other enough to sign the contract, but neither wants to be the first to transfer their part of the deal into the ether.
The Solution: A Neutral Escrow Agent
An escrow agent acts as the neutral, trusted referee who holds the assets in a secure holding pattern until the conditions of the contract are fully consummated.
- For Users of the MPB Marketplace:
Both parties have already vetted the contract and the medical patent assets. A neutral escrow agent temporarily holds the Intellectual Property (IP) and the payment. Upon receiving the green light from both sides, ownership of the medical patents and the payment funds are transferred simultaneously.
The digital transfer of the title and accompanying documents to the buyer happens in tandem with the wiring of purchase money to the seller. The parties can be in completely different states or entirely different continents, and in seconds, the deal is done. Just a few decades ago, this kind of transaction was impossible—the money could be transferred, but not the legal title. It still is amazing to me how seamlessly technology handles this today.
- Managing Post-Closing and Long-Tail Payments:
After the initial closing, the licensor can hire a specialized escrow agent to manage ongoing license payments. The licensor can use this escrow watchdog to monitor milestones, track royalties, and manage the changing terms of the license depending on sales by the licensee.
Many licensors are convinced it is well worth the price to have a dedicated, neutral party oversee the ledger and directly deposit cleared funds into their bank account.
The President’s Viewpoint
A medical patent deal is not finished until the seller has the cash secured in their bank account and the buyer holds the clean title and bill of sale. The ultimate close is when the technology is legally transferred and the funds are safely deposited.
A neutral escrow agent simplifies the closing mechanics for everyone involved—making the entire experience far more secure and enjoyable for both sides.
