Intellectual property (IP) is the most important asset of technology-driven companies. This asset, developed and owned by technology companies, is an intangible asset. How tech companies fail or succeed depends on how they manage their intellectual capital resources and turn them into strategic intellectual property assets. These intellectual property resources will enable them to benefit from a lasting competitive advantage over their competitors. There is a well known saying: “Innovation without Protection is philanthropy.
” Many investigations show that significant and important scholarly capital is squandered in innovation organizations. The lack of an intellectual property culture alone or happily ignoring the importance of transforming intellectual capital into intellectual property by management with internal practices that do not exist or are bad for capturing intellectual capital and transforming it into intellectual property are the main reasons for this. loss. . Financially hungry companies usually do not have an IP budget or end up spending it on unnecessary IP resources. At the opposite finish of the range, there are organizations that accept they have a licensed innovation procedure since they have recorded a few licenses en route. In most cases, these notifications have not been made in any strategic plan and may ultimately be of little value to the owner. Filing a patent before implementing the right IP strategy is like shooting without aiming.
Wake up Call: Infringement Notice
Realizing that there is no real IP strategy, you receive an email in the form of a letter from a law firm alleging infringement of the intellectual property of one of its clients. Basically, these letters are considered significant events and are reported to the board of directors, investors or shareholders or to a potential buyer. It is obvious that changes in the design of any product in a final stage of production to eliminate potentially counterfeit features are extremely expensive compared to an early stage of development. As a consequence, this event may involve legal compensation obligations for partners, distributors and their global channel. In addition, it is also possible that it is difficult to eliminate the infringement function, and yet the patent owner may decide to process the recovery of the previous infringement. However, most companies are completely unaware of the risks associated with intellectual property that they may face when preparing to enter new markets and without having a consistent brand, trademark and patent strategy. An intellectual property strategy is more than reducing risk and exposure. As a result, management, which does not include a robust IP strategy in its overall action plan, makes the company extremely vulnerable to current or potential competitors and other legal challenges. Your current and future profitability and even your survival are at risk.
Essence of a solid IP Strategy
A solid intellectual property strategy must fully support and adapt to the company’s overall business strategy to help achieve a sustainable competitive advantage. The objective should be used intellectual property as a resource:
- Help generate profit and increase income opportunities.
- Minimize legal risk and dependence on third parties.
- Set your company as the sole supplier of goods or services thanks to a number of enforceable rights
- maximize the company’s ROI for its shareholders and
- Promote the company’s valuation regarding its funding and / or exit strategy.
In straightforward bookkeeping terms, the objectives are to augment resources and limit liabilities.
Methodology in Developing a Solid IP Strategy
These are the common steps involved in developing any sound IP strategy:
- Define the overall goals of the organization.
- Assess your internal resources objectively.
- Make a full assessment of the competitive market.
- Create a simple long-term IP management plan
- Implement and measure an intellectual property management plan.
This is done by preparing a detailed personalized questionnaire for the company and conducting targeted control interviews with selected people based on the information provided in response to the questionnaire.
A good intellectual property strategy focuses on intangible assets that make up almost all of the company’s assets, but management generally ignores them because they are not as visible as tangible assets and are not required ”, financial reports. . A well-formulated strategy becomes an integral part of the overall business plan and plays an important role in helping the company achieve and maintain its long-term competitive advantage and restore value to its owners and investors. Investing in intellectual property creation despite long-term subsidies pays off in the long term to maintain full market pressure and become a market leader. The expertise is that it is beneficial to receive such subsidies and that sometimes intellectual property problems such as potential infringements should be avoided or minimized.