Patents – Page 4 – BusinessInnovationManagement.com

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

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

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

Step Three of Three Steps Used in the Valuation of Intellectual Assets

Step 3: Determining Ultimate Value Though quantitative tools provide evaluation/pricing starting point, they must be used in conjunction with careful evaluation of qualitative factors to ultimately determine fair market value. Those factors are instructive as to a fair split of excess benefits between the negotiating parties. As well, and the actual budget constrained, [...]

pgermeraad2021-10-08T14:22:48-07:00

Step Two of Three Steps Used in the Valuation of Intellectual Assets

Qualitative Factors in IP Valuation Step 2: Applying Approaches Assuming the availability of adequate data, income approaches often provide the most useful measure of value. Of particular significance is incremental income approach, which compares the intellectual asset covered returns with the returns the next best alternative. Products or services containing unique intellectual [...]

pgermeraad2021-10-08T14:23:00-07:00

Step One of Three Steps Used in the Valuation of Intellectual Assets

Given this background of the three general methods of valuation, the process of valuation of intellectual assets thus proceeds in several steps: Step One: Choose An Approach Optimally, an intellectual asset valuation, just like valuation performed when selling a home, should employ each of the three approaches noted above. Data and information [...]

pgermeraad2021-10-08T14:23:07-07:00