Market Coverage Measures To obtain a good return on patent licensing, it is helpful to be able to license the technology in the major commercial markets of the world. In the “Market Coverage Measures” figure, we see the markets that are covered by patents in this portfolio. In this case, there are over [...]
Technical Strength and Business Utility Measures Here the individual axes rely heavily on citation counts, reference counts, and examiner codes. Looking at the pattern in this figure, there are no exceptional attributes. However, there are over a half dozen attributes in the B+ range. This is important for negotiation. The sports analogy is [...]
Validity and Enforceability Measures Scores derived from the company’s portfolio and the portfolios of other comparison patents (each from specific assignees) are ranked between zero and the maximal value on any one axis of a radar diagram. There are times when the average value is quite low compared to the maximal, and other [...]
Understanding Exceptional Performance In addition to comparing a company’s portfolio to be licensed-out to other portfolios, statistical measures of value can also be applied. The teachings of Edward Deming and the Quality movement are very helpful here. The “average plus three standard deviations” was often set as a limit to discern when a [...]
When preparing for negotiations, it is important to understand which patent attributes are likely to play a central role in the negotiations, versus other attributes that are not a point of distinction or value. Several entities have engaged in creating patent scores, patent strength, and patent rating algorithms that apply a single value [...]
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 [...]
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