Licensing Model

Once AST acquires a portfolio through a LLC, it grants a license to the members that funded the acquisition. By licensing only those member companies involved in the purchase, rather than all AST members, the maximum value of the portfolio is preserved for its ultimate sale, while providing defensive protection to those that desire it. On average, 20-30 percent of AST members participate in a given acquisition, which clearly demonstrates that “one size fits all” aggregation models are expensive and inefficient relative to the model developed and practiced by AST. The license granted, from the outset, is fully paid up, perpetual, irrevocable, worldwide, and non-exclusive. AST members do not have to worry about a vesting period for their license rights, and even a member who chooses to leave AST takes their licenses with them.

AST does not divulge which companies have a license to a particular portfolio, even to other AST members involved in the same portfolio acquisition. The only exception to this is in the case of a sale of the portfolio on the open market, and then only after consent is granted by a majority of members holding licenses and only to serious potential purchasers which have signed strict non-disclosure agreements.

If a member company that did not participate in the initial portfolio acquisition subsequently desires a license, they can elect a Subsequent License Option or SLO. The license fee for a SLO is the highest price paid by a member, and the license proceeds are returned to the original bidders. New members are allowed to take a license to any portfolio currently owned by AST. Prospective members are encouraged to consider the current portfolios held by AST.

The license agreement used by AST member companies may be downloaded here.