Exploit4U evolved out of the award winning IP Wales programme (www.ipwales.com) run by University of Wales Swansea . The purpose of that programme was to assist small and medium – sized enterprises (“SMEs”) based in Wales with the development and protection of their intellectual property. The academics running the IP Wales programme found that SMEs are good at inventing and then filing patents. In particular, at the time of filing their PCT, they include all possible territories because it has no cost implications at that stage. However, when it comes to national filings and fees become due, all but a few major territories are abandoned. This is set against a background where many SMEs are more interested in the technical aspects of their inventions and future work, rather than in becoming engaged in the commercial slog of finding licensees.

This haemorrhaging of intellectual property at the national filings stage led the academics into thinking that there could be a commercial opportunity for someone to try and find a licensee in the territories which would otherwise be abandoned when fees became due. There is a gap of approximately 12 months between the PCT being published and the deadline for national filings; this provides a window of opportunity to find licensees with any income shared (net of expenses) with the patent applicant. If no licensee is found, then the patent applicant would be no worse off, because that particular territory would have been abandoned anyway. If a licensee is found, then any net royalty due to the patent applicant would be pure profit.

Accordingly, in early 2005 the academics approached Compton Group, who agreed to take the Exploit4U model forward: this involved acquiring the shell company which owned the idea, domain name etc.

This business model has been further developed by approaching larger organisations (e.g. large companies, universities), who may have IP assets about to be dropped. The service to the larger organisations again operates on a “no success, no fee” basis.

A company search on Exploit4U Limited (company registration number 4218368) at this stage will reveal nothing more than the dormant accounts of a shell company. However, Exploit4U is part of the established Compton Group: more information on Compton Group can be found by clicking here.

For statutory information on Exploit4U, click here