Munich Innovation Group is a leading service provider for patent monetization and
IP advisory services.
Patent Portfolio – The Cornerstone For Every Company’s Strategy
Depending on the nature of the industry that a company is active in, its value is often defined by intangible assets – and the intellectual property portfolio is typically a large part of that. In the high-tech industry the current and future patent portfolio defines the strategic scope and possibilities of a company. Without protected IP, new products cannot be introduced into the market unless the risk of protracted litigation, injunctions and reputational damage is being neglected.
The Strategic Importance of Patent Portfolios
By analysing at a company’s patent portfolio, it is possible to get a deeper insight in the products and the industrial focus of the company. But that is just the beginning; a patent portfolio, as well as recent patent acquisitions, gives evidence about the future direction to which companies are heading to. That refers both to the specific forthcoming technical areas being focused on and the future investment in exactly those areas.
A patent portfolio, as well as recent patent acquisitions, gives evidence about the future direction to which companies are heading to.
Patent portfolios are not only in that sense strategic as they tell us about the future alignment of companies, they also bear a strategic value itself. Products being secured by patents are often exactly those products which make up the competitive edge for companies, strengthening enterprises against competitors, creating the freedom to operate necessary and last but not least enabling companies to get their vitally needed further growth.
Even after the flip-sale of Motorola Mobility, Google kept all the patents.
Given those facts, it seems obvious why companies invest huge amounts of capital in their research departments. They therefore strive to get the necessary innovations for enriching their patent portfolios. But it is also an ever growing trend that companies put strong emphasizes on acquiring IP assets from other parties. In this context, the range goes from the acquisition of a few strategic patents up to mainly IP driven company take-overs - including their patent portfolios. Google’s recent take-over of Motorola is just a well-known, large-scale example of a so called IP driven M&A. And even after the flip-sale of Motorola Mobility, Google kept all the patents. Without informing the public many smaller but similar deals are carried out every day.
Role of Professional Companies in the Evaluation of Patent Portfolios
It is highly recommended to ask for the assistance of professionals when acquiring or disposing of patents.
When it comes to an IP transfer, the value of patents needs to be estimated. Licensing companies do this on the basis of discounted licensing revenues. Operating companies need to take account a larger freedom to operate scope or better IP protection for current and future patents. That however, is not an easy task. It rather is highly recommended to ask for the assistance of professionals who are specialized in the areas mentioned. They are able to provide vital assistance both for acquirors and vendors of patent portfolios. Potential buyers of IP assets are provided with useful information about which patent portfolio are offered on the market.
On the other side, the creation of auction-like mechanisms is to make sure that patent portfolio transactions are as profitable as possible for IP sellers. Companies like Munich Innovation have many industry contacts combined with the expertise and experience. That makes transfers of patent portfolios both financially very attractive and as convenient as possible.
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