New Patent Could Turn U.S. Debt Portfolio Market on its Ear

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS published a story this morning on its blog–The Business of Receivables–regarding the announcement of a patent issued by the United States Patent and Trademark Office to TriCap Technology Group. TriCap owns the open market debt portfolio exchange platform, ARxChange.

The new patent (# 8234209) has material implications for the U.S. debt markets as a whole, and specifically for any ARM company that buys delinquent debt or services purchased delinquent accounts.

Here’s an excerpt from the post:

“[T]he IP announced today extends protection to TriCap and its core ARxChange platform over the organization, sorting, ranking, valuing, and posting of debt and accounts receivable across all U.S. consumer markets, not only those derived from the healthcare industry. Specifically, IP # 8234209 affords TriCap exclusive rights to whenever receivables in any market are:

  • organized by a computer into a portfolio
  • sorted
  • ranked
  • scored whereas the final score represents the collect-ability and base value of the portfolio
  • and whereas the final score is posted to a secure website on the Internet.

The implications of adding this second IP to TriCap’s patent portfolio are at once elementary and (quite possibly) revolutionary. Simply put, the patent secured today by TriCap seems to substantiate an acknowledgment by the USPTO that the basic attributes of how the debt purchasing and servicing market functions in the ARM industry are indeed patentable. Transformative in that IP # 8234209 appears to govern the structure of an entire market, agnostic of asset class or type of receivable.”

Click here to read the entire post, How A (Non-Apple) U.S. Patent Might Just Change the World, and share your feedback on what this patent might mean for U.S. creditors,  the debt purchasing market, and the entire ARM industry.


Michael Klozotsky is the Chief Content Officer at & Follow him on Twitter @mklozkgc and @insidePF.


Continuing the Discussion

We welcome and encourage readers to comment and engage in substantive exchanges over topics on Users must always follow our Terms of Use. Also know that your comment will be deleted if you: use profanity, engage in any kind of hate speech, post an incoherent or irrelevant thought, make a point of targeting anyone, or do anything else we find unsavory. Your comment will be posted under your current Display Name, shown below. If you'd like to change your Display Name, you must update it on the My Profile page.

  • avatar Ryan Watson says:

    I don’t see this standing under a decent legal challenge. Absolutely atrocious.

  • avatar andy-raddatz says:

    So you’re not allowed to sort portfolios anymore? Will Microsoft have to pay out to TriCap every time I sort A-Z in Excel?

  • avatar Ameripay says:

    The problem with a legal challenge to this is the same problem we face with FDCPA litigation only worse. When you get sued for IP violations in Federal Court defense attorneys are looking for a $50k retainer to fight your patent infringement. It makes defending an FDCPA suit look like chump change. The litigation is protracted and very complicated.

  • avatar john pratt says:

    I like the folks at TriCap but I think the patent and its implications will be hard to enforce. As I read this though it would only apply if one created a “score” and posted it to a secure website.
    This ought to be fun to follow.

  • avatar dann-king says:

    I agree. It sounds to me that companies like NLEX are impacted by this. I find it hard to believe that every creditor that sorts, ranks and scores their portfolio prior before offering a sale file to a group of qualified buyers would be impacted.

  • avatar jessie-gomez says:

    I don’t see why everyone is getting their panties in a up roar over this. A lot of debt sellers already have steady buyers that is paying a fair price why pay someone to auction off your debt. TriCap Technology Group can not tell ever debt seller out there that you must used my services because I have a patent.

  • Jessie–

    The “auction” aspect has nothing to do with the potential implications of this patent, nor does it involve TriCap compelling buyers and sellers to process transactions through it or ARxChange.

    The fact is, the U.S. government has issued the patent on a process. That’s the issue.

    If you haven’t already, I encourage you to read my entire (longer) post on


  • avatar jmapes says:

    Based on that we could shark frenzy on patenting all kinds of standard processes. That sounds dumb but dangerous to me. It makes me think of how the “Happy Birthday” song received copyrights and how the wheel barrow got patented by some legal students centuries after it had been invented. Sometimes things get carried a little too far…

Leave a Reply