# Quest Patent Research Corp

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Quest Patent Research Corp).

## Overview

Quest Patent Research Corp. is a U.S.-based intellectual property asset management company focused on acquiring, controlling, licensing, and enforcing patent portfolios. Its business is organized around monetizing patented technologies through license agreements, often in connection with patent infringement litigation and settlement.

## Products & services

• Patent portfolio acquisition and management
• Patent licensing and settlement agreements
• Intellectual property enforcement and litigation support
• Monetization of patented technologies
• Covenant-not-to-sue and related IP rights

- **Patent licensing** (70%) — One-time and settlement-based licenses granting rights to use patented technologies.
- **Patent enforcement and litigation monetization** (20%) — Patent infringement actions and related settlements used to generate license revenue.
- **Intellectual property portfolio management** (10%) — Acquisition, control, and administration of patent portfolios and related rights.

- Patent portfolio acquisition and management
- Patent licensing and settlement agreements
- Intellectual property enforcement and litigation support
- Monetization of patented technologies
- Covenant-not-to-sue and related IP rights

## Customers

The company’s customers are typically operating companies that are alleged to use patented technologies and choose to resolve disputes through licenses or settlements. These counterparties are often technology and industrial businesses that need freedom to operate, avoid litigation risk, or secure rights to continue manufacturing and selling products.

- **Patent litigation defendants** (primary) — Companies that settle infringement claims by paying for licenses and dismissal of litigation.
- **Technology manufacturers** (primary) — Firms that need rights to manufacture or sell products covered by patented technologies.
- **Settlement counterparties** (secondary) — Businesses that resolve disputes through one-time paid-up license fees.

- Operating companies accused of patent infringement
- Technology and semiconductor-related licensees
- Businesses seeking settlement to avoid litigation
- Counterparties buying freedom-to-operate rights
- Parties needing covenant-not-to-sue protection

## Geography

Quest Patent Research Corp. is headquartered in the United States and its monetization activity is centered on U.S. patent enforcement and licensing. The company’s reported litigation activity includes actions in U.S. federal courts, and its revenue is tied to settlements and licenses negotiated in those proceedings.

- Headquartered in the United States
- Patent litigation activity centered in U.S. federal courts
- Revenue depends on U.S.-based settlement and licensing deals
- No disclosed country revenue split in the provided excerpts
- Geography matters mainly through U.S. legal venue and enforcement

## Strategy

The company’s strategy is to build and monetize patent portfolios through acquisition, enforcement, and licensing. It seeks value primarily by pursuing infringement claims, negotiating settlements, and converting patent rights into paid-up license fees.

- **Monetize patent portfolios through licensing and settlements** (short-term) — License fees are the core revenue source and depend on successful enforcement.
- **Pursue infringement actions where needed** (short-term) — Litigation is used to create settlement leverage and generate revenue.
- **Build additional monetizable IP portfolios** (medium-term) — A broader portfolio can create more licensing opportunities and diversify revenue sources.

- Acquire and control patent portfolios with monetization potential
- Use litigation to establish leverage in licensing negotiations
- Convert disputes into one-time paid-up license fees
- Seek third-party funding to support enforcement actions
- Expand monetizable portfolios over time

## Risks

The business is highly dependent on litigation outcomes, settlement timing, and the willingness of counterparties to pay for licenses. It also faces financing, going-concern, and listing-related risks because enforcement activity can require substantial upfront legal spending before any recovery is realized.

- **Litigation outcome risk** [high] — Revenue depends on winning or settling patent infringement cases.
- **Revenue concentration and timing risk** [high] — Revenue is recognized when settlements or licenses are executed, causing large quarter-to-quarter swings.
- **Financing and going-concern risk** [critical] — Legal enforcement requires capital and the company disclosed substantial doubt about continuity.
- **Patent validity and PTAB challenge risk** [high] — Inter partes review or other validity challenges can weaken enforcement leverage.

- Revenue is episodic and depends on litigation settlements
- Patent challenges can reduce or delay monetization
- Third-party funding availability is uncertain
- Going-concern and liquidity risk are significant
- Patent assets may be impaired if monetization fails

## Accounting

Revenue is recognized at a point in time when a license agreement or settlement is executed and control transfers, which makes reported revenue highly dependent on deal timing. Patent acquisition costs are capitalized and amortized over estimated useful lives, while patents are also reviewed for impairment when triggering events occur, making estimates around recoverability important.

- **Revenue recognition for patent licenses** — Creates lumpy revenue and comparability issues across periods
- **Capitalized patent costs and amortization** — Affects operating expense timing and asset carrying values
- **Impairment of intangible assets** — Can cause non-cash write-downs
- **Warrant liability fair value** — Creates period-to-period gains or losses in other income/expense

- Revenue recognized on execution of license or settlement agreements
- Quarterly revenue can be highly volatile and non-recurring
- Patent acquisition costs are capitalized and amortized
- Patent impairment depends on recoverability judgments
- Warrant liability is remeasured at fair value each period

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*Last updated: 2026-04-29T04:50:28.767439+00:00*