Making intellectual property work for business - World Intellectual ...
Making intellectual property work for business - World Intellectual ...
Making intellectual property work for business - World Intellectual ...
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Setting up IP services | Providing consultancy services<br />
Support <strong>for</strong><br />
commercialization of IP<br />
40 <strong>Making</strong> <strong>intellectual</strong> <strong>property</strong> <strong>work</strong> <strong>for</strong> <strong>business</strong><br />
valuation methodologies. Due to the unique nature of IPR, the method <strong>for</strong> IPR valuation<br />
is typically selected on a case-by-case basis, and a combination of methods is sometimes<br />
used in an ef<strong>for</strong>t to show a fair range of values <strong>for</strong> a particular IPR. There<strong>for</strong>e, it<br />
is doubtful whether a single universal method <strong>for</strong> valuation can be developed to apply<br />
in all cases to best determine the fair range of values <strong>for</strong> a particular IPR. Regardless<br />
of the selected method or methods, the aim of the valuation is to identify and quantify<br />
the economic benefits that IPR are likely to generate, and ultimately the likely cash flow<br />
from those economic benefits (see below <strong>for</strong> patent evaluation tools).<br />
In conducting due diligence studies of IPR, <strong>business</strong>es and the financial community<br />
need to recognize that because patents are unique, their value cannot be determined<br />
without proper legal analysis. This analysis considers issues such as validity, en<strong>for</strong>ceability,<br />
scope of IP rights, potential revenue from infringement by others, and potential liability<br />
from infringing the IPR of others. Such studies provide more reliable in<strong>for</strong>mation about<br />
the financial value of the IPR, as well as in<strong>for</strong>mation useful in setting <strong>business</strong> direction<br />
and strategy, than do automatic techniques such as “citation analysis”, which at best<br />
provide only a rough guide to patent value, and may be quite misleading.<br />
Some <strong>business</strong> membership organizations help member companies identify potential<br />
clients <strong>for</strong> their IP assets, while others have specific services to help companies draft<br />
agreements with their partners. However, very few <strong>business</strong> membership organizations<br />
provide a comprehensive service to support companies throughout the process of<br />
identification, selection and negotiation with potential partners or clients.<br />
Business membership organizations can assist companies in searching <strong>for</strong> suitable<br />
partners through participation in various net<strong>work</strong>s and databases, international<br />
technology transfer events, commercial missions or through collaboration with other<br />
organizations that promote IP and innovation results.<br />
Some <strong>business</strong> membership organizations have databases specifically designed<br />
to encourage the commercial exploitation of technologies by providing a transparent<br />
plat<strong>for</strong>m <strong>for</strong> technology and knowledge transfer between innovators, academics<br />
and the <strong>business</strong> world. Technology transfer databases help companies interested<br />
in acquiring external know-how under licence, patent-owners looking to license their<br />
inventions, and also academics or companies looking <strong>for</strong> research partners. Such<br />
databases also allow member companies to research the applications-oriented themes<br />
and technologies on which researchers in both the academic and <strong>business</strong> worlds are<br />
<strong>work</strong>ing.<br />
Business membership organizations can also propose an analysis of whether the<br />
company’s idea or innovation is technically and commercially feasible, and whether a<br />
profitable market <strong>for</strong> the innovation or idea exists. The service may assist the company<br />
in redefining an unprofitable innovation into a marketable one. It should be kept in mind<br />
that such services should help inventors and developers to be objective and develop<br />
a clear profile of market features and benefits – as they may not be able to see their<br />
invention’s faults and may be oblivious to the commercial realities. Assessing the<br />
geographical market of the intended product and focusing IP protection ef<strong>for</strong>ts on the<br />
relevant markets will also avoid unnecessary waste of resources 23 .<br />
Be<strong>for</strong>e embarking on an export operation, <strong>business</strong>es go through a series of<br />
crucial steps which range from identifying an appropriate export market and estimating<br />
demand, to finding channels of distribution, estimating costs and obtaining funds.<br />
Businesses should also be advised to take IP issues into account during this phase,<br />
and look into ways in which IPRs could enhance their competitiveness in export markets.<br />
Implementing an IP strategy in the export market will help develop advantageous<br />
market positions, ensure freedom to operate in that market, and build positions <strong>for</strong><br />
en<strong>for</strong>cing IPRs in that market.<br />
23 Recommendations provided by the Chamber of Commerce of Sussex, England
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