There are different levels of value to be obtained from an IP like a gold mine. As you go deep and reach new reserves, you’ll gain more. It’s completely same in IP management. The value depends on how you manage your IP in your company and this shows your position in value hierarchy pyramid.
There are different sets of value that a company can generate from its IP Portfolio. The primary goals for companies are to set their business value according to defensive, revenue generation, cost avoidance and strategic/tactical positioning approaches.
First of all, you need to be aware that it’s not one-week journey. Probably, it’ll be 2-6 years of hard work to pass next level according to your position in the pyramid. This long journey includes auditing technologies, establishing IP strategies and policies, creating a corporate IP organization and ownership structure, developing a trade secret identification and protection program, and establishing programs to educate employees and management about the IP. And honestly, tickets are really expensive. You need to be ready to put all your effort, time and money.
As defined in *EDISON In the Boardroom, there are 5 different levels;
The value hierarchy
- Defend Position: In this level, you believe that protection is the main goal of generating IP in order to prevent competitors. IP portfolio could be used as strength in your negotiation with your customers or possible partners. You can enforce your IP by using it as a legal asset to determine boundaries in the market.
- Manage Cost: You still see the IP as legal asset but now it’s time to reduce the cost which includes IP management, maintenance fee, filing, enforcing etc. Main ability you need to develop is tracking your IP. To do so, you need to determine a screening process from idea generation to integration of IP with business case. You only need to keep the IP that&&&&&'39;39;39;39;39;s relevant with your firm’s business.
- Capture Value: After turning your IP stock into a portfolio, you can finally manage to reduce and control your cost. And now, you recognise that besides using your IP as legal asset, you can use it as a business asset and generate revenue from it. This needs a complete change in your mind set which you need to be patient about it. In business terms; strategy is what the company intends to do to reach its long-term objectives; tactics are the activities it pursues in specific business situations to meet short-term goals. And you need both to capture value from your IP Portfolio.
- Synthesis Opportunities: Now, you’re ready to play the game and enjoy what you’re doing. You’ve already accomplished to relate your IP with your business goals and gain more value. But you still need to manage innovation risk, environment risk and intrinsic patent risk. Think your IP portfolio as a strategic asset and determine your risks in order to eliminate or mitigate all risks and barriers through your market.
- Shape the future: You have the power to identify new trends/technologies and position yourself ahead of your competitors. You can definitely lead the future by filling IP landscape in your field. Mostly, you&&'39;39;ll need to define and influence one or more desired future.
What?, your firm is not on the pyramid. !!
Don’t destroy your value, move yourself to first level. I’ll be writing about how you can do it.
* Edison in the boardroom, How leading companies realize value from their IP