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Monetizing Intellectual Property in a Receivership

CRA Annual Conference 2025 | St. Louis
Panelists: Sonette Magnus (Thompson Coburn), Greg Milligan (Moderator, Harney Partners), Joshua Pichinson (Sherwood Partners), G. Edward Powell (IPX)

Introduction

Intellectual property (IP) has become one of the most valuable—and complex—assets in modern businesses. At the CRA Annual Conference 2025, the panel “Monetizing Intellectual Property in a Receivership” explored strategies for valuing, preserving, and maximizing returns on intangible assets in distressed situations.

The Rise of Intangible Value

The panel highlighted a dramatic shift in corporate asset structures over the past four decades. In the 1970s and 1980s, roughly 80% of a company’s value was tied to tangible book assets. Today, 85% of a tech company’s value often resides in intangibles such as patents, trademarks, and proprietary systems

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For receivers, this shift means that IP can no longer be treated as an afterthought—it may represent the most significant opportunity for recovery.

Valuing Intellectual Property

IP valuation is as much art as science. Panelists noted that intellectual property often functions like a “prediction market,” where value is tied to the future potential of innovation rather than current revenue.

Key considerations include:

  • Maintenance fees and ongoing costs that affect the value of patents.

  • Portfolio pruning to identify which assets are worth keeping, selling, or abandoning.

  • The need for subject matter experts (SMEs) to work with examiners when assessing technical or specialized IP portfolios

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Pre-Receivership and In-Receivership Priorities

Managing IP begins well before the receivership process.

Pre-Receivership Focus:

  • Identifying and cataloging all IP assets.

  • Reviewing assignments and ownership records to avoid gaps.

  • Determining whether encumbrances or liens exist on patents or trademarks.

In-Receivership Focus:

  • Preserving and maintaining valuable IP.

  • Addressing missing assignments and chain-of-title issues.

  • Bucketing IP assets into categories that align with potential monetization strategies

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Challenges in Monetization

Panelists discussed common hurdles receivers face when attempting to monetize IP:

  • Incomplete records: When assignments cannot be located, ownership claims become difficult to establish.

  • Systems limitations: While patent databases can pull existing company patents, they may not reveal encumbrances or security interests.

  • Strategic decision-making: Determining what to preserve versus what to let go requires balancing short-term value with long-term potential

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Planning a Pathway to Value

Maximizing returns on IP requires deliberate planning. Receivers must:

  • Evaluate the true value of patents beyond their face registration.

  • Resolve problems with ownership or documentation promptly.

  • Segment or “bucket” IP assets into categories (core, non-core, encumbered, etc.) to develop tailored strategies for sale or licensing

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Conclusion

As companies increasingly derive their worth from intangible assets, intellectual property management has become a critical competency in receiverships. The CRA panel on “Monetizing Intellectual Property in a Receivership” reinforced that valuing, preserving, and strategically monetizing IP requires both legal and technical expertise.

By approaching IP not just as a legal formality but as a market-driven asset class, receivers can unlock significant recovery opportunities in distressed situations.