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U.S. Department of Justice Concludes Eight-Month Review of IPXI Licensing Model

  U.S. Department of Justice Concludes Eight-Month Review of IPXI Licensing

PR Newswire

CHICAGO, March 27, 2013

CHICAGO, March 27, 2013 /PRNewswire/ -- Intellectual Property Exchange
International, Inc. (IPXI), the world's first financial exchange for licensing
and trading intellectual property (IP) rights, today announced that the U.S.
Department of Justice (DOJ) Antitrust Division has concluded an eight-month
business review of the Exchange and issued its Business Review Letter (BRL),
highlighting many innovative and efficient aspects of the IPXI licensing

The Exchange initiated the BRL process, while not required for IPXI to launch,
to provide certainty to its members, market participants and prospects that
the model that IPXI has developed provides efficiencies to the market and does
not warrant enforcement action by the DOJ.  In addition to noting many
beneficial characteristics of the IPXI model, the DOJ also commented that
there were three areas which it could evaluate only when put into practice.

Under the Department's BRL process, an organization may submit a proposed
action to the Antitrust Division and receive a statement as to whether the
Division currently intends to challenge the action under the antitrust laws. 
The Department stated that, "...though the proposal could potentially produce
certain efficiencies," it "declines to state its enforcement intentions" at
this time.

IPXI President and Chief Executive Officer Gerard Pannekoek said: "We believe
this letter from the Department of Justice confirms our long-standing view
that IPXI is innovative and promotes efficiencies.  With this review complete,
we anticipate announcing very soon the official launch of the marketing period
for our first offerings that will pave the way for trading on the Exchange."

Pannekoek added:  "While we recognize that our market model is new and
innovative, and may be difficult to predict with precision, we are gratified
that those few practices that the Department identified as potential 'risks'
are largely practices in which IPXI will not engage. We are confident that
when our Exchange is in full operation, we will meet the most stringent of any
test under the competition laws."

Marshall Phelps, an IPXI Holdings, LLC independent Board of Managers member,
said: "IPXI's members and prospective market participants can now conduct
business on the Exchange with the added confidence that IPXI is a vehicle for
bringing transparency and efficiency into what has always been an opaque
market. The new model that IPXI offers is a major breakthrough in the way that
IP will be licensed on a non-exclusive basis."  Phelps is widely known as a
pioneer in the field of IP licensing, including implementing groundbreaking
initiatives for two of the world's largest IP companies, Microsoft and IBM.

The DOJ noted that, among other benefits of the IPXI model:  "IPXI's proposed
exchange potentially could generate efficiencies for the IP marketplace and
encourage innovation through increased licensing efficiency, sublicense
transferability, and greater transparency."

In regard to increased licensing efficiency, the letter stated: "...IPXI has
the potential to benefit both patent holders and users of technology with
lower transaction costs and more efficient matching of licensors and
licensees.  The result may produce savings for downstream consumers."

The BRL went on to address the benefits to licensees price transparency in the
IPXI model:  "By increasing price transparency, licensees may be able to
manage their IP budgets with more precision and make efficient research and
development decisions that lower overall costs."  In addition, the letter
indicated that if IPXI's model can facilitate and advance licensing based on
"F/RAND" or "fair, reasonable and nondiscriminatory terms", "…it may generate
significant efficiencies."

The DOJ further noted certain potential benefits that IPXI can bring to the
market when patents of more than one owner are offered together. Addressing
this concept of Pooled Unit License Right™ (ULR™) contracts, the Department
stated: "IPXI's platform for pooled ULRs has the potential to generate
additional efficiencies by reducing the time and expense of acquiring and
disseminating all the pooled patents to potential licensees, reducing the
amount of stacked royalties, clearing blocking positions, and integrating
technologies that are necessary to practice an industry standard or field of

The IPXI Founding Members include some of the world's leading innovative
corporations and most prestigious universities, as well as cutting-edge
national laboratories. The Founding Members have committed to sponsor
offerings on the Exchange with an aggregate target market value in excess of
$750 million.  

Among the IPXI Founding Members are: Ford Global Technologies, LLC, Philips
Intellectual Property & Standards, a division of Koninklijke Philips
Electronics N.V. (Philips Electronics), Hewlett-Packard Company, J.P. Morgan
Chase & Co., and Sony Corporation of America.

About IPXI

IPXI is the world's first financial exchange for licensing and trading
intellectual property rights. The mission of IPXI is to meet the price
discovery, transaction efficiency and data distribution needs of intellectual
property owners, investors and traders by creating the central marketplace for
tradable IP assets. IPXI is funded by a group of U.S. and European investors,
including CBOE Holdings, Inc. (Nasdaq: CBOE), parent of the Chicago Board
Options Exchange (CBOE), and Royal Philips Electronics (Philips). For more
information on IPXI, please see the Exchange Fact Sheet or visit

SOURCE Intellectual Property Exchange International, Inc.

Contact: Ellen G. Resnick of Crystal Clear Communications, +1-773-929-9292 or
cell, +1-312-399-9295,
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