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
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.