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

kguttag.com

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

#41

Post by jonas21 »

kguttag wrote: post #27
berberous wrote: post #12

Earlier quoted context omitted.

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.

I'm not a lawyer, but my understanding that the effectively J.P. Morgan now owns the patents (unless a court somehow unwinds the deal) and why the assignment was registered with the USPTO. The patents are then being licensed back to Magic Leap. In this way if Magic Leap defaults, J.P. Mogan simply owns the I.P. like if you pawn something and default on the payback terms.

At the very top of the PDF, it says this is a patent security agreement, which is a common way to use patents as collateral for a loan. JP Morgan will only own the patents if Magic Leap defaults on the loan.

You can read more about patent security agreements here:

https://www.ipwatchdog.com/2012/06/21/getting-a-loan-with-yo...

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

#42

Post by jayd16 »

Ididntdothis wrote: post #16

What happened to them? They were in the news a lot for a while but lately it’s totally quiet . I thought they finally had released something. Has anybody tried their tech?

Yeah, they have a devkit you can get. Its neat but with no install base and Hololens looming over them, there's not much to talk about.

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

#43

Post by Nition »

nrp wrote: post #31
foolfoolz wrote: post #14

Magic leap founded in 2010 Raised $2.6 Billion Revenue: $0?

It wouldn’t be $0, since they have likely sold a few tens of thousands of dev kits. Gross profit on those devices is likely zero or worse though.

> a few tens of thousands of dev kits

I'd be willing to bet that it's more like a few thousand at most. Does anyone here know anyone with a Magic Leap One (maybe yes, since this is Hacker News, but still...)?

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

#44

Post by vanniv »

echelon wrote: post #3

How did they ever raise such capital? I want in on it. Capex for R&D is prohibitive.

The Softbank Vision fund is a very interesting and strange beast.

Created by a risk junkie, funded mostly by governments hoping to mix profit with prestige, and ultimately likely to implode as part of the next tech bust.

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

#45

Post by kbar13 »

dannyw wrote: post #39

This is just an anecdote, but everyone and everything about Magic Leap has always struck me as pretentious, elitist, and ego-driven. I walked by their booth at GDC a couple years ago, and tried to struck up a conversation with the representatives. I was essentially shooed away and given a sticker. Later on that night, an invite to their Magic Leap party was sent to a telegram channel with an open invitation to 'come…

if they sent an invite 10 minutes before it was wrapping up it's because nobody showed up lol

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

#46

Post by jayd16 »

tus88 wrote: post #30
echelon wrote: post #3

How did they ever raise such capital? I want in on it. Capex for R&D is prohibitive.

Its called hype - hype around VR/AR specifically.

Ehh, its more than just hype. They have a device that exceeds the Hololens. Its not vaporware.

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

#47

Post by berberous »

kguttag wrote: post #27
berberous wrote: post #12

Earlier quoted context omitted.

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.

I'm not a lawyer, but my understanding that the effectively J.P. Morgan now owns the patents (unless a court somehow unwinds the deal) and why the assignment was registered with the USPTO. The patents are then being licensed back to Magic Leap. In this way if Magic Leap defaults, J.P. Mogan simply owns the I.P. like if you pawn something and default on the payback terms.

No, this is a short-form IP security agreement that's customarily used by a secured lender to perfect its security interest in IP collateral. If you want more details, this page explains why these forms are necessary: https://www.whitecase.com/publications/article/perfecting-se....

Ownership does not transfer to the secured lender as a result of this filing.

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

#48

Post by aaron695 »

If any wanker goes on about Theranos but didn't call out Magic Leap years ago delete them from your feed.

And ML still goes on.

We know its technologically impossible yet people still go on like its something.

But the sad thing is, it's hard to say the actual value of the patents, to ML nothing but as a troll maybe a fair bit.

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

#49

Post by kelsolaar »

kguttag wrote: post #21
kelsolaar wrote: post #10

Looks like his server is in damage control, Web Archive has a copy but is in the same state for me: https://web.archive.org/web/*/https://www.kguttag.com/2019/1...

Thanks for providing the link to the archive. I have up the capacity, but when the cite hits #1 on Hacker News (as it is right now), it looks like the traffic is still overwhelming. It probably does not help that I put the larger associated document for people to download (I was going to put a link up but the link was not working in the Chrome browser).

Thanks Karl! Seems like it is fine now.

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

#50

Post by nrp »

Nition wrote: post #43
nrp wrote: post #31

Earlier quoted context omitted.

It wouldn’t be $0, since they have likely sold a few tens of thousands of dev kits. Gross profit on those devices is likely zero or worse though.

> a few tens of thousands of dev kits I'd be willing to bet that it's more like a few thousand at most. Does anyone here know anyone with a Magic Leap One (maybe yes, since this is Hacker News, but still...)?

Fair. Karl is probably close to the mark with his estimate of 5-8k. I would also guess that the vast majority of those are in the hands of other companies in the AR space rather than end-users of AR experiences.
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