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All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

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Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#101

Post by Bud »

mceachen wrote: post #59
Bud wrote: post #15

I'm amused that anyone ever took Magic Leap seriously. It's basically Apple's Newton; a good idea without the tech, without the infrastructure, without the content to sustain it and make it useful. Check back in after 10 years.

Newton's second release of hardware and software was actually pretty solid. It needed some user training (there were many features that simply weren't discoverable, but were slick one you knew), and it was expensive. It certainly wasn't a toy with a couple half-baked demos and no actual apps. There was a healthy third party hardware and software developer ecosystem. A lot of people (including me!) wanted to see it wo…

I wanted to see it work too; I bought one! But in retrospect I think it's clear that it was a product that was about 10 years before its time. Once it was possible to build something (iPhone) about 5x smaller, about 10x faster, with about 100x the connectivity, and about 10x the display resolution, that's when it really took off.

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#102

Post by gumby »

egdod wrote: post #98
gumby wrote: post #68

Earlier quoted context omitted.

Patents can have value even if you never get a product out the door. Most patents are not worth the money spent getting them in the first place.

While it's true that most patents never get asserted or licensed, I suspect that in a pure sale, very few would go for less than the prosecution cost.

That has not been my experience, on both sides of a transaction.

Sometimes massive libraries of patents are useful (I presume this is why google kept Motorola's patents when they sold the company off) simply because they can be brandished as a counter-weapon when a large company is threatened in a patent battle. But think of it as a sandbag: one grain of sand is negligible and few companies have more than a handful.

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#103

Post by sdinsn »

jonwachob91 wrote: post #100
sdinsn wrote: post #99

Earlier quoted context omitted.

> mid-five-figures in unit profit Their most expensive product only costs $3,290.

You underestimate how the US Military makes purchasing decisions...

You clearly don't understand. If they are selling units to the military for more than COTS, that's illegal.

Let me provide the real facts, instead of your baseless speculations:

Microsoft and Magic Leap were competing on a Army contract. Microsoft won. The contract is $480 million for 100k units. That's $4800 per unit. 4 figures, not 5. The Hololens 1 costed $5000/unit COTS.

Magic Leap's cost proposal couldn't have been far off.

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#104

Post by cududa »

auston wrote: post #85
TheSoftwareGuy wrote: post #19

I’m really hoping magic leap makes it in the long run. They’re a huge tech employer in south Florida, and frankly we could use more tech companies. I’m always afraid a recession will wipe them out and flood the market with experienced engineers.

Sup Guys! Long time Miami native - there are dozens of tech cos: I'm always psyched to meet more people and tell them all about what's going on in miami, feel free to email me: ab@bitsorbricks.com or text me 954-247-1673!

Dudes just trying to be helpful.. no need to pile on the downvotes

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#105

Post by cinquemb »

berberous wrote: post #12
perspective1 wrote: post #8

Earlier quoted context omitted.

So did Magic Leap default, or is the loan newly made with JPM to hold the patents while the loan is outstanding? Seems like the IP in this case isn't very valuable to JPM* and this is more just another way to guarantee the seniority of JPM's loan. * Didn't read the patents themselves, but Oculus, Hololens and others are doing just fine without them. So, hard to imagine they have too much auction value.

It looks like Magic Leap just closed on a new loan in August, not that they defaulted. This filing ensures that if they ever _do_ default, JPM has the rights it expects in the IP as collateral.

There's HQLA like treasuries as collateral, and then there is Magic IP paper as collateral.

Amazing collateral chain these days… anything to keep origination pipelines up, hopefully JPM can securitize enough of this and offload it to a yield chasing pension or something.

Maybe the employees can sell what hasn't been collateralized yet on platforms like: https://softbankfiresale.com/

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#106

Post by jonomacd »

berberous wrote: post #5

The title and tone of this article make it sound unusual that the company used its IP as collateral. You can get better loan terms (such as the interest rate) if your loan is secured. If you are going to get a secured loan, the default is that it's secured by 'all assets', which includes IP. In order to perfect a security interest in IP, you need to make this type of filing -- and a lender will be especially sure to…

The person who wrote this article has a well known vendetta against magic leap. So that explains that.

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#107

Post by jonomacd »

TheSoftwareGuy wrote: post #19

I’m really hoping magic leap makes it in the long run. They’re a huge tech employer in south Florida, and frankly we could use more tech companies. I’m always afraid a recession will wipe them out and flood the market with experienced engineers.

I do as well. I don't see how as they are burning a hell of a lot of money and it still seems quite far from a broad consumer product. But they have probably pushed up the timeline for AR headsets dramatically with the work they have done. Essentially training up people in the technology so when they quit they can go work for Google and Apple who will likely be the ones to eventually productise this when folks have developed the technology enough.

But who knows what they have up their sleeve for v2...

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#108

Post by jonwachob91 »

sdinsn wrote: post #103
jonwachob91 wrote: post #100

Earlier quoted context omitted.

You underestimate how the US Military makes purchasing decisions...

You clearly don't understand. If they are selling units to the military for more than COTS, that's illegal. Let me provide the real facts, instead of your baseless speculations: Microsoft and Magic Leap were competing on a Army contract. Microsoft won. The contract is $480 million for 100k units. That's $4800 per unit. 4 figures, not 5. The Hololens 1 costed $5000/unit COTS. Magic Leap's cost proposal couldn't have b…

If Magic Leaps most expensive product is ~$3,300... Why didn't they win the contract over Microsoft's $4,800 product? B/c Magic Leaps contract for selling to the DOD was higher than that the products listed on their site.

That's why the military ends up buying hammers for $1000 when you could pick up a higher quality one for $10 from your local hardware store.

Re: All Magic Leap Patents Have Been Assigned to J.P. Chase Morgan as Collateral

#109

Post by sdinsn »

jonwachob91 wrote: post #108
sdinsn wrote: post #103

Earlier quoted context omitted.

You clearly don't understand. If they are selling units to the military for more than COTS, that's illegal. Let me provide the real facts, instead of your baseless speculations: Microsoft and Magic Leap were competing on a Army contract. Microsoft won. The contract is $480 million for 100k units. That's $4800 per unit. 4 figures, not 5. The Hololens 1 costed $5000/unit COTS. Magic Leap's cost proposal couldn't have b…

If Magic Leaps most expensive product is ~$3,300... Why didn't they win the contract over Microsoft's $4,800 product? B/c Magic Leaps contract for selling to the DOD was higher than that the products listed on their site. That's why the military ends up buying hammers for $1000 when you could pick up a higher quality one for $10 from your local hardware store.

> Why didn't they win the contract over Microsoft's $4,800 product?

You are showing your ignorance again: the DoD doesn't make decisions like these based on monetary value alone. Technical merit was likely the deciding factor.

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