Chapter 13: IP Processes – Page 4 – BusinessInnovationManagement.com

Considerations When Undertaking the Third of Four Top Value Realization Process to Extract Value from IP – Joint Ventures

Option 3: Joint Venture The objectives of this approach are: to leverage intellectual property owners R&D, manufacturing, marketing and financial resources to facilitate new markets, possible acquirer becomes joint venture partner, nature of revenue sharing agreements may provide significant upside potential for intellectual property owner, and contribution into joint venture may be intellectual [...]

pgermeraad2021-10-08T14:21:04-07:00

Considerations When Undertaking the Second of Four Top Value Realization Process to Extract Value from IP – Licensing

Option 2: Licensing The objectives of this approach are: leverage intellectual property value beyond current uses, achieve maximum value through a combination of upfront and running royalty, develop minimum annual payments, maintain right to use intellectual property, control licensee’s rights to intellectual property, and benefit from improvements made by licensee. The concerns of [...]

pgermeraad2021-10-08T14:21:18-07:00

Considerations When Undertaking the First of Four Top Value Realization Process to Extract Value from IP – Selling

Option 1: Selling the Intellectual Property The objectives of this approach are: to realize the value from the under-utilized intellectual property, maximize the value received, accelerate timing of receipt of revenue, transfer maintenance fees and other costs of ownership to buyer, minimize possible recourse to the seller, and possible license back to cover [...]

pgermeraad2021-10-08T14:21:25-07:00

Considerations When Undertaking a Value Realization Process to Extract Value from IP

Establish initial focus of value realization efforts based on internal strategy, corporate inventory and assessment of IP; utilize a process to identify assets of high potential value; use a process to identify core versus non-core intellectual property, license only to competitors or non-core applications; timing of potential value realization (time to market, maturity [...]

pgermeraad2021-10-08T14:21:37-07:00

The Benefits of a Successful Value Realization Process to Extract Value from IP

Shareholder value is created directly by generating cash or strategic value; all intellectual property assets are reviewed and value realization strategies are developed and implemented, ensuring efficient use of the portfolio; create short-term cash to fund the development of holistic intellectual property management system solutions, reducing the risk in the process; low-cost source [...]

pgermeraad2021-10-08T14:21:44-07:00

Processes to Extract Value from IP

The intellectual property portfolio of a company is an excellent source of potential value. In addition to the value an organization can achieve by using intellectual property in its own products and services to generate excess profits, intellectual property can also create value opportunities outside of a company. These strategies a company can [...]

pgermeraad2021-10-08T14:21:55-07:00

Percent Patents Maintained by Company Size

Portfolio Preservation by Company Size When the U.S. patent data was filtered by company size, it was found that companies with over $10 billion in sales filed about 10x more than smaller entities with sales <$100 million. Also, as the “Portfolio Preservation by Company Size” figure shows, larger entities also retain more of [...]

pgermeraad2021-10-08T14:22:05-07:00

Percent Patents Litigated by Year over Their Lifetime

The litigated data is presented to contrast the other patent movement. It is useful to see that the scale of litigation (and invalidation due to litigation) is quite small compared to entities simply choosing not to pay fees. Patent Litigation Frequency With respect to litigation of patents in a portfolio, the percentage of [...]

pgermeraad2021-10-08T14:22:20-07:00

Percent Patents Maintained by Year over Their Lifetime

Another way to get a sense of how much art is typically retained for offensive (litigation and dissuading honest competition), defensive (cross-licensing), licensing-out, and barter (ventures) use, as well as how much is abandoned, the following benchmarks are provided. Benchmarking results by Thom Kobayashi show that companies tend to let roughly equal portions [...]

pgermeraad2021-10-08T14:22:28-07:00

Lognormal Distribution of IP Assets’ Values

Lognormal Distribution Of Asset Values When looking at large portfolios companies participating in the Gathering 1 network found that the value of patents was log normally distributed. Such a curve is shown in the “Lognormal Distribution Of Asset Values” figure. Further work showed that a typical unmanaged IP portfolio has: 1% of its [...]

pgermeraad2021-10-08T14:22:41-07:00