3 Takeaways from Alibaba’s Patent Acquisition Spree

In recent times, Alibaba – China’s largest e-commerce company is making the news on its patent acquisition spree, ahead of its planned IPO in US.


First, Alibaba is prepping up itself well and trying to avoid the mistakes of Facebook and Twitter during their IPO’s.

Second biggest gain for Alibaba is that it is securing from becoming target of existing market competitors and also against any vulnerabilities at these critical times.

Alibaba obtained 102 patents, including 20 purchased from International Business Machines Corp. Alibaba has more than 300 applications in process for various technologies including payment processing, product recommendation engine, image searches etc.

Yahoo Inc. owns 24 percent stake in Alibaba and holds more than 1,500 patents.

Third benefit for Alibaba from patent acquisition strategy is that Patents can help drive up proceeds in IPO’s. Valuation increases with more patents in the folio.

Key Takeaway – Prepping up for IPO with broad patent portfolio is a good strategy in improving stakeholder value.“.

Kameshwar Eranki is CEO of VajraSoft Inc. He is author of the eBook – Managing Innovations for Profitable growth. For free download of the eBook, click here.

About VajraSoft Inc. – VajraSoft Inc. is Intellectual Property (IP) Management Software company, helping customers manage innovations and monetize IP’s. Our award winning products empower businesses and IP law firms to automate the patent filing cost estimation process of creating cost estimation quotes for filing a patent in any country globally. VajraSoft Inc. PatFolio helps customers with Invention Disclosures Management, Drafting Patent Applications, filing, managing patent prosecution life cycle and patent maintenance.

VajraSoft Inc. is Master Class IP Solution provider, and its products won several Cloud awards including – UP Start Awards for Best Industry Application for 2012. Silicon India magazine listed VajraSoft Inc. as Top 100 Technology companies in US for 2013. VajraSoft Inc. is also Finalist of StartmeupHK Venture Program, conducted by the Govt. of Hong Kong and UP Start Cloud Award for Best BI / Analytics Application for 2013.

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