A key question facing executives when they are about to license-out an intellectual property portfolio is “What’s the true value of these assets and who should I license them to so that I further my business objectives?” Answering this question in a timely and accurate manner is vitally important. The ability to quickly [...]
Step 1. Perform an intellectual asset inventory and mapping. Ideally this should have already been done to ensure there are enough high-quality intellectual assets to make a licensing out program worthwhile. Step 2. Evaluate opportunities through technology and market analysis and evaluation. Again, the preliminary work should have already been done by using [...]
Portfolio Mining Process to Create Licensing Revenue Having answered the above questions and formulating a licensing strategy, the company would undertake the following four steps in order to implement a successful licensing program (They are also imbedded in the “Portfolio Mining Process to Create Licensing Revenue” figure):
Ratio of Sold vs. Unsold Patents To determine how to use licensing-out to create value, company needs to formulate a licensing strategy that is consistent with its overall business strategy. Note that not all art offered for license is sold/licensed as shown in the “Ratio of Sold vs. Unsold Patents” figure. In fact [...]
Licensing out is a highly effective way to maximize utilization of an intellectual asset portfolio. The common business objectives associated with licensing out in order of importance to the licensor are: to collect royalties; to enter a foreign market; to exchange technology with an industrial or commercial partner; to support the selling of [...]
Companies doing business in foreign countries or competing with products from other countries are frequently presented with competitive situations in which their intellectual assets can be enforced at various countries borders to prevent imports of infringing/competing products. Various internationally accepted procedures provide for the protection of registered rights, the prevention of unfair trade [...]
A corporate decision to enforce intellectual assets requires careful consideration. The company’s business objectives must always be kept in mind. Typically intellectual asset enforcement because it is so highly specialized is more expensive than other types of business litigation. Anyone undertaking intellectual asset enforcement efforts should be qualified to conduct quality work and [...]
Most companies focus on protecting proprietary technologies that give their products and services an advantage over those of competitors. The classic cases include Xerox, which legally monopolized the copier market for nearly 20 years, earning double-digit margins and earnings growth. When Xerox was forced to license is copier patents under terms of a [...]
The first step in extracting value from intellectual property is to avoid business loss by infringing another’s assets. The proliferation of the Internet and the increased importance of intellectual property in the overall economy have made intellectual property risks among the most significant for many types of businesses. Intellectual property litigation has become [...]
Option 4: Donation The objectives of this approach are: to realize value from immature, underutilized or non-core assets, transfer maintenance fees and other costs of ownership to donee, further improvements required to commercialize intellectual property are avoided, and obtain income tax deduction for fair market value of intellectual property which may exceed value [...]
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