Patented Matchmaking

A Pasadena company plans to launch the first Internet-based auction for patented intellectual property. Patent & License Exchange, or PLX, said it will open its site this summer, allowing patent holders to find buyers for the patents through an auction format. The company hopes to take advantage of the growing online business-to-business market that many believe will eclipse online retail applications.

PLX officials said patents and other intellectual property are perishable goods that would benefit from the more efficient market that online auctions promise. Currently, more than 600,000 patents are available for sale, and an additional 265,000 come on the market every year, the company said.

Already, the company has signed on Credit Swiss Re Group to develop a package of patent validity, infringement and enforcement policies, while Chicago Title Insurance will supply patent escrow services.

PLX said it hopes to earn revenue from transaction fees, annual seat fees and premiums off royalty management fees. For now, however, PLX plans to burn through $1.5 million a quarter.