Monetizing your intangible assets

Posted by Baxter IP on

As the holder of intellectual property (IP) rights, it is crucial that you are fully aware of new opportunities to monetize your IP.

In my last article [IPFS] I described the exciting opportunities offered by the Singaporean Government’s Intellectual Property Financing Scheme (IPFS). However, there are also a number of other developing and established avenues through which you can seek to monetize your IP rights.

Established avenue – partnership with public listed companies

Unfortunately, there are countless examples of IP holders who have been unable to bring an action or enforce their IP rights, due to financial constraints and the potentially heavy financial burden associated with legal action. These IP holders may well be missing out on the opportunity to capitalize on their hard work and investments.

One way to resolve this situation is to partner with another organization, with the financial capacity to support you in pursuing legal action. One such organization is IMF Bentham Limited, an Australian listed company that provides appraisals of prospective cases and offers funding terms, and is present across multiple jurisdictions. Further, American listed company RPX Corporation offers an alternative pathway that may be better aligned with some IP holder’s business goals and strategy.

The company acquires patents from IP holders, and then licenses them out to third parties. There are several other companies that also purchase patents, offering you the opportunity to negotiate on sale price for your IP – these include Marathon Patent Group Inc. and Spherix Incorporated, both American listed companies.

Developing avenue – sovereign patent funds (SPF)

Governments around the world are becoming increasingly aware of the importance of protecting IP rights, and are implementing new IP strategies accordingly. Several governments have formed funds, either in conjunction with private sectors or wholly government-funded, dedicated to acquiring and managing patent portfolios in order to protect domestic IP holders from infringement by foreign competitors.

France Brevets, formed by the French government, is one of the very first sovereign investment funds dedicated to patents with a worldwide perspective, with commitment of € 100 million in place. The French government has also created a second SPF called Fonds Souverain de la Propriété Intéllectuelle, managed by France Brevets and with € 100 million at its disposal.

Patent funds like these in numerous countries offer unprecedented opportunities for you to monetise your IP rights.

‘Tangiblising’ the intangibles

Current developments in the IP marketplace around the world provide immense opportunities for IP holders to ‘tangiblise’ their intangibles – which is why it is crucial that you get a thorough understanding of possible monetization options at all stages of planning, developing and structuring your IP portfolio.

In marketing, the ‘4P’ concept (PRODUCT, PRICE, PLACE AND PROMOTION) is widely used. Nowadays most businesses have well and truly embraced it, adopting the 4P model to successfully achieve their business goals.

There is comparable model used in the field of IP: ‘4W’ (WHO, WHAT, WHY, WHEN). Unfortunately, it’s far less well known than the 4P model – having good grasp of the concept will dramatically increase your opportunities to monetize your IP rights.

At Baxter IP Patent Attorneys, we pride ourselves in providing not only the best legal approach, but also the industry-specialist knowledge necessary to capture the essence of your intellectual property and guide you through the process of obtaining IP rights, building and strengthening your IP portfolio – and most important of all, to help you to ‘tangiblise’ your intangibles.