Q&A: The crucial role of patent monetization

As companies seek new ways to drive value from their IP, patent monetization has become a top strategic priority. In this Q&A, Leah Christoforidis of Red Chalk Group shares insights on building effective patent packages and navigating the evolving IP transaction landscape.

In today’s rapidly evolving market, companies increasingly seek patent monetization as a crucial strategy for generating revenue, defending against litigation, and capitalizing on emerging technologies.

As such, we’re thrilled to share a Q&A with Leah Christoforidis, General Counsel and Head of IP Transactions at Red Chalk Group, building on the insights she shared in our well-attended webinar.

Leah’s many years at Red Chalk Group advising Fortune 500 companies and private equity firms on IP monetization and M&A support give her a unique vantage point. Read on for more from Leah on navigating complex patent sales and maximizing portfolio value.

Q: Why is patent monetization such an important topic among legal leaders this year?
A: Patent monetization has become a strategic priority for legal leaders due to economic pressures, evolving litigation risks, and the increasing value of intellectual property in emerging technologies.

There are four specific drivers:

1. Economic Pressures Driving New Revenue Stream: In a time of economic uncertainty, companies are reassessing the value of their IP portfolios to generate revenue. Whether through licensing, joint ventures, or outright patent sales, businesses want to extract financial value from their patents to strengthen cash flow and mitigate risk.
2. Increased Patent Litigation & Non-Practicing Entity (NPE) Activity: Patent enforcement remains a significant concern, with NPEs actively acquiring patents and asserting them through litigation. Both large tech firms and startups are facing a rise in infringement lawsuits, making defensive IP strategies—such as cross-licensing agreements and targeted acquisitions—critical for risk mitigation.
3. AI & Emerging Tech Transforming Patent Valuation: Artificial intelligence and other advanced analytics tools reshape how patents are assessed and monetized. Companies can evaluate patent strength, market potential, and competitive positioning more effectively. Additionally, new technologies like quantum computing, blockchain, and biotech are driving the creation of high-value patents, further increasing the need for proactive monetization strategies.
4. Stronger IP Enforcement in Key Global Markets: Patent laws and enforcement mechanisms are evolving across significant jurisdictions like the U.S., China, and the EU. Governments are refining regulations to encourage innovation while curbing abusive litigation practices. This has led to a more dynamic global patent trade, where companies leverage patents as strategic assets and bargaining tools in international negotiations.

Q: What are the three most critical questions you get from legal leaders trying to maximize their patent monetization opportunities?
A: Legal leaders want to know the key considerations for building a patent package. When assembling a patent sales package, it is essential to focus on the value to a buyer rather than aligning it with your own business unit or products. The package should reflect what is heavily commercialized or in demand in the market.

A well-structured sales package typically includes 15 to 50 patent families that share similar technological foundations, with 3 to 5 core, strong families potentially infringed upon by the market—these patents drive the sale efforts. While package sizes can vary from single families to hundreds, this mid-range tends to be the sweet spot for most transactions.

Another key consideration is the inclusion of families with foreign counterparts. Foreign counterparts are increasingly essential as demand for patents in Europe, Asia, and South America continues to rise. Buyers actively seek international patents, making them valuable to any portfolio.

Most importantly, evidence of use (EOU) materials, such as claim charts, can expedite the sale process by clearly demonstrating the portfolio’s value. While they are preferred, its important to note that they are not always necessary.

Legal leaders also want to understand the likely timeline of a patent sales process and key milestones. The patent sale process generally takes 9 to 12 months. The initial phase involves identifying patents, preparing marketing materials highlighting the portfolio’s strengths and business case, and creating a targeted list of potential buyers.

Once outreach begins, the process becomes iterative—marketing materials are distributed, follow-ups are conducted, and feedback from the marketplace is gathered. Buyers often have a backlog of portfolios under consideration, and their internal review and decision-making process can take weeks.

Typically, bids start around the 6-9-month mark, with an estimated 3 months required to finalize the deal, depending on the complexity of negotiations and contracting. Over time, as the patent transaction market matures and parties become more experienced, the contracting portion of deals has become more efficient.

Q: I hear a lot that the traditional tech companies that typically hadn’t considered selling assets (especially prior to joining LOT) are now exploring it but don’t know how to market their assets. What should they keep top of mind?

A: It is all about the package you are building. When thinking about the right package and how to market it, you need to focus on the problem your package is solving, and the business case it addresses. Once this is worked through, the rest tends to fall into place.

Q: How does Red Chalk support clients through the process?

A: Our team of IP professionals helps clients navigate complex intellectual property challenges, from managing and assessing their patent portfolios to valuation, monetization, and competitive analysis. We also support clients in selling and acquiring IP assets, working on a success-fee basis to ensure strategic and value-driven transactions. Our goal is to help businesses maximize the potential of their IP assets while staying competitive in an evolving market.

Q: How did you come into this role?

A: I came to Red Chalk through a nontraditional route. At the time, the legal job market was incredibly challenging, and I realized that I had a unique opportunity to explore something different—something that truly intrigued me.

My advice to others in a similar position is this: if you find something compelling, don’t be afraid to dive in and give it a real shot. There’s a well-trodden path in law—litigation at a traditional firm—but there’s also immense value in stepping outside that structure and pursuing what genuinely interests you. If you’re curious and passionate, follow that instinct. The traditional route will always be there, but the chance to build something innovative and impactful is rare.

When I joined Red Chalk, we were a small, highly dedicated team of five. Today, we’ve grown to 25 people, expanding in the intellectual property (IP) arena as well as traditional management consulting. Our work is incredibly complex, presenting challenges I wouldn’t have encountered had I taken a more traditional legal path. That complexity has been intellectually rewarding and has allowed us to differentiate ourselves in the market.

Ultimately, our growth has been driven by focus, execution, and a commitment to excellence. We started small, but through dedication and deep expertise, we built a business that stands out in a complex and evolving landscape.

Q: What is most professionally interesting to you about patent monetization?
A: The field itself has evolved significantly. Fifteen years ago, very few professionals did this kind of specialized work at our current level. The market has become more sophisticated but remains a niche area with much left to uncover. While more professionals are now exposed to this space, it’s still highly specialized—if you’re not doing it regularly, it can be surprising how much there is to learn.

One of the most exciting aspects of my work is engaging with emerging and disruptive technologies. These technologies are constantly evolving, so no two days are the same. Whether it’s the latest consumer electronics, advancements in AI, or next-generation innovations, staying at the forefront of what’s coming next is intellectually stimulating and strategically important.

A significant part of my role involves staying current on the latest technological developments—understanding where the market is heading, what innovations are on the horizon, and how those advancements might impact industries. It’s a dynamic environment that requires a deep commitment to continuous learning. While there’s value in understanding legacy technologies, the real thrill comes from looking ahead and anticipating what’s next. That forward-thinking approach keeps our work fresh, relevant, and impactful.

I also have the privilege of working with a highly skilled team of analysts. We operate as a collaborative group, bringing different perspectives and expertise to dissect complex technological and intellectual property landscapes. This team-driven approach allows us to take on sophisticated challenges and provide meaningful insights to clients navigating fast-changing industries.

Q: Tell me a bit about your contribution to AI Portraits of Cancer.

A: AI Portraits of Cancer is a project at the intersection of art, technology, and storytelling that highlights powerful cancer journeys. As a kidney cancer survivor, and a kidney cancer advocate, I thought this was an inspiring way to share my story and spread awareness in a novel way.

Check out Leah’s story and contribution here.