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Choosing a Path to Value for your Intellectual Property

Posted on Thu, Jan 21, 2010

Is there a better way?Choosing a Path to IP Value photo

Consider the cost:

  • In 2008 485,312 patents or 1,867 per work day were filed with the U.S. patent office yet only  54% will eventually receive approval
  • The Caerus Institute reports that for the years 1990 – 2007, $23.7B was spent in the United States on patents that never issued and $19.9B on securing patent that had no value to the patent holder.  [No value means not being used for licensing revenue or cross license transactions, or does not read on any current or future products/services of the patent owner.
  • The Office of Public Affairs reports that only 3,000 out of 1.5 million patents that are presently in effect are commercially viable.
  • And in a study of the results of patent litigation at the appellate level during the years 2002- 2004 patentees lost 76% of the time against accused infringers.

In pursuit of reward:

  • The Economist reports that in the U.S., technology licensing revenue accounts for an estimated $45B annually and worldwide around $100B. IBM realizes about $1B per year and HP $200M.
  • In a 2004 McKinsey survey of corporate executives 75% of the executives expect to buy as well as sell more licenses over the next five years with 43% expecting a dramatic increase in licensing revenue.
  • For every $1M spent on R&D tech companies are filing two patents
  • It is estimated that three quarters of the value of publicly traded companies in America come from intangible assets

Intellectual Property and Value

  • IP includes patents, copyrights, trademarks, and trade secrets
  • As a defensive measure IP can protect company innovation and invention value from infringers
  • IP can create on-going licensing revenue streams to an organization without being capital intensive
  • Investors in start-up companies especially Venture Capitalists want patented technology that if need be can be sold to protect their investment
  • Intellectual property can be shared, exchanged and cross licensed to create and accelerate markets
  • The more patents a company has the more credibility a company has as a leader and innovator

Pace of Change

Intellectual property, patent management enforcement and the body of law are rapidly changing as are technology, invention innovation and market cycles. Any mismanagement of IP resources not only costs companies wasted dollars each year but causes them to miss out on the direct impact a strategically managed IP program can have on company value. Strategically driven IP programs can spur investor interest, strengthen a company’s balance sheet and earnings results and contribute to the ongoing health and sustainability of an organization.

The Executive Dilemma

Even though intellectual property holds promise as a key driver of business value most company executives discover that realizing it is easier said than done. The typical company applies traditional patent processes using conventional tactics to solve immediate patent problems. There is a lack of a strategic roadmap that integrates the near and long term market, technical, legal, financial and business considerations for the company. The result is many organizations find themselves spending too much time and costs on patents that have little strategic impact while at the same time under investing in intellectual property that could create new levels of organizational value and competitive advantage.

IP Path to Value℠ from The Sage Group and the Juhasz Law Firm

The IP Path to Value℠ provides organizations a better way to strategically develop and manage intellectual property assets. Co-developed by The Sage Group and The Juhasz Law Firm, IP Path to Value℠ is a nine stage multi-disciplinary strategic program that enables executives in companies of all sizes to identify, grow and realize a patent’s portfolio value. It is unique and innovative because it integrates business strategy, legal strategy, technical innovation and product and market readiness into the patent management process. IP Path to Value℠ assists executives in making more informed decisions as to balancing increased levels of investment and risk with return. It is a complete intellectual property solution from patent development to patent enforcement and monetization.

Announcing ‘Choosing a Path to Value for your Intellectual Property’ Seminar from The Sage Group and The Juhasz Law Firm

We are announcing a series of seminars around Choosing a Path to Value for your Intellectual Property to be held February through April in the Greater Seattle, WA and Austin, TX area with other locations soon to follow. Intellectual property has moved out of the R&D labs and hands of patent lawyers and landed in the corner office and board rooms. The seminar is intended for executive management and those in the organization held accountable for better patent decision making and return on investment.

To enroll in one of our seminars please contact or contact me at

And please feel free to visit our strategic alliance: The Juhasz Law Firm at

Choosing a Path to Value for Intellectual Property

Tags: Path to Value, IP Path to Value, Intellectual Property, Patent, lawyering, patent seminar