Articles by Tyron Stading on ArticleSnatch.com

What makes your Patent more valuable

Wed, 24 Nov 2010 23:55:23 -0500

The two February articles covered the concept of IP valuation — the benefits of understanding the value of your IP and the different models in use today for quantifying that value. There’s a missing piece to the equation though: exactly which attributes make your IP valuable? First, it is important to understand that specific attributes of your IP don’t necessarily make it valuable, but you can look for indicators that are consistently correlated to types of value. There are multiple definitions of value depending on the focus of your organization. For example, maintenance, litigation, licensing, defense and strategy each have their own value that is unique to your team or company. Within the context of that focus area, you should try to understand statistical patterns that are correlated to valuable outcomes, as you define them. Based on the desired outcome, you can leverage attributes of your IP to find other IP that also demonstrate those same patterns. The following example illustrates one outcome for litigation value that Innography can help you evaluate. **End Summary** Topics: intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innperspective â A series of articles about the latest trends and updates in the field of intellectual property protection from Innography. In this article edition, we talk about the factors which make the patents valuable and how patent information is useful.

Mergers and Acquisitions Due Diligence: Seven Critical Steps You Canât Afford to Overlook - II

Wed, 13 Oct 2010 07:15:30 -0400

• How much of the IP portfolio was acquired compared to that developed internally? One of the many things your IP portfolio represents is know-how. The inventor of the technology with a patent protection is the ultimate subject matter expert for that technology. You would typically rely on that inventor to extend the technology and to develop complementary technologies to enhance your market position in that arena. If the acquisition target has acquired a significant amount of technology from outside the company, it is possible that there are no subject matter experts to fully exploit the IP the company holds. Even if the technology was developed internally, inventors can also leave the company. The key take-away is that you need to inventory the human resources within the acquisition target to make sure you get the greatest return on your investment. • In emerging markets, who’s likely to be my competition? Emerging markets tend to be risky for many reasons, and entering them makes good market intelligence a must. One of your best sources of market intelligence is your competition. You need to understand in which technologies they are investing. The initial challenge is identifying your competition. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innperspective â A series of articles about the latest trends and updates in the field of intellectual property protection from Innography. Here is a 3 part series of articles on Seven Critical Steps for Mergers and Acquisitions of Companies and how IP management is gaining importance in the Corporate world.

Mergers and Acquisitions Due Diligence: Seven Critical Steps You Canât Afford to Overlook - I

Wed, 13 Oct 2010 03:16:14 -0400

The topic of Mergers and Acquisitions (M&A) has become much more important to many companies today than it has been in the past. The economy appears to be on the mend, and companies are scrambling to find ways to expand quickly. Companies are also being forced to cope with rising litigation risk because the business environment is simply more litigious. It is not unusual for companies to hold back the acquisition offer until an IP audit is performed and cleared. The litigious nature of business today has even created a relatively new product in the insurance industry. If the company being acquired wants the acquisition offer immediately rather than waiting for clearance, they must purchase an insurance policy that shifts the risk from the acquiring company to the issuing company. This increased litigiousness has also produced a more rigorous due diligence requirement that involves more focus on the way intelligence is gathered and the processes associated with it. The process is much more regimented than it once was, requiring companies to ask the following questions: • What IP does the acquisition candidate own? The acquisition candidate should provide an IP portfolio catalog. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innperspective â A series of articles about the latest trends and updates in the field of ip protection from Innography. Here is a 3 part series of articles on Seven Critical Steps for Mergers and Acquisitions of Companies and how IP management is gaining importance in the Corporate world.

Competitive Intelligence: Getting Ahead of the Development Curve

Fri, 03 Sep 2010 03:28:22 -0400

Today companies are being forced to cope with rising litigation risk because the business environment is simply more litigious. This increased litigiousness has produced a more rigorous due diligence requirement that involves a greater focus on the way intelligence is gathered and the processes associated with it. Part of this rigorous protocol is to monitor the IP landscape generally and competitive targets specifically (companies, products and technologies), before a decision is made to pursue one or more candidates. You can monitor technology in a variety of ways as it is being developed. At the inception of a technology, research platforms can provide only limited assistance because patents aren’t typically filed until about halfway through the product lifecycle. The lifecycle of the product usually begins with basic research and progresses through a developmental stage until it is mature enough to patent. After the technology is mature and protected, marketing plans begin to emerge as it is applied to products and finally introduced to the market. Because results of patent analysis rely in part on patent data, there isn’t a way to use it to thoroughly evaluate the technology between inception and patent prosecution. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innography offers intellectual property protection , and IP management to gain importance in the Corporate world.

Benefits of understanding the value of your IP

Tue, 15 Jun 2010 09:04:47 -0400

IP can be expensive to develop, commercialize and maintain—so we intuitively understand that it has value. Many IP professionals wonder, though, just what makes it valuable and whether certain attributes make some IP more valuable than others. First, it is important to understand that specific attributes of your IP don’t necessarily make it valuable, but you can look for indicators that are consistently correlated to types of value. There are multiple definitions of value depending on the focus of your organization. For example, maintenance, litigation, licensing, defense and strategy each have their own value that is unique to your team or company. Within the context of that focus area, you should try to understand statistical patterns that are correlated to valuable outcomes, as you define them. Based on the desired outcome, you can leverage attributes of your IP to find other IP that also demonstrate those same patterns. The following example illustrates one outcome for Intellectual Property litigation. An academic paper produced by faculty members at University of California at Berkley, Stanford, University of Texas, and George Mason University School of Law entitled “Valuable Patents” analyzes key indicators that suggest the relative value of patents in a legal context. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

The Rise of False Marking Litigation

Sat, 24 Apr 2010 07:29:45 -0400

There is a new litigation trend brewing on the horizon: false marking. Much like the increase in litigation in early 2000 from patent trolls, this is now a new source that’s driving increases in litigation. Because of a recent court decision, it is extremely profitable to sue companies who have falsely marked products as patented. For operating companies, this has serious implications for product projection strategies, maintenance decisions, and product management. U.S. Patent Law explicitly permits marking products to indicate they are in some way protected by a patent i.e. Patent Protection. There are a number of reasons a company might decide to expend the effort of marking a product to indicate a patented technology, process, or material was used in producing it. It might be determined, for example, that as a marketing tactic, the mark provides a competitive advantage by causing the perception that the product is superior. Another obvious reason to mark a product is that it puts your competitors on notice that they are barred from copying anything unique about your product without your written permission. A careful reading of the statute (35 U.S.C. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

Bulletproof Your IP Strategy through Business Analytics â Part 2

Sun, 04 Apr 2010 09:17:00 -0400

An excellent and easy to understand example of this strategy is cited by Davenport and Harris in their book, Competing on Analytics. The cited case study is Netflix. The very nature of Netflix’s business requires them to track customer rental habits and it should come as no surprise that they use that data to drive business decisions. One aspect of their business is distribution rights for DVDs. A very basic decision in this part of their business is the appropriate volume of DVDs to purchase in order to distribute a given film. If they order too many copies of a film with very little interest among their customer base, the distribution obviously will not be profitable. If they do not order enough, they will not be able to meet the demand, fracturing their sales model, which is to say customers will stop subscribing. Netflix promises their customers they will receive their DVD order in about one business day and there is no contract; cancel at anytime. Given their business model, it is critical that they use analytics to optimize their distribution decisions. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

Bulletproof Your IP Strategy through Business Analytics â Introduction

Sun, 04 Apr 2010 03:39:14 -0400

Today there is a new and growing trend in business which relies on analytics to drive critical decisions and to be distinct from the competition. Like most disciplines in which success can be objectively measured, business is a blend of art and science. In his book Sun Tzu and the Art of Business — Six Strategic Principles for Managers, Mark McNeilly writes “Like Sun Tzu’s Age of the Warring States, today’s business world is one of continual conflict between companies as they strive for survival and success across the globe. Faced with scarce and expensive resources and an ever-changing environment, competitors seek even the slightest advantage.” The art of business can’t be overlooked, but neither can the science of making strategic decisions based on analytic data. Data-driven decisions can help to ensure that your decisions are sound and are aligned with your business strategy, which should also be based on keen market analysis. Analytic data can provide critical insights into market trends, your competition and even your intellectual property management practice, which now typically governs two thirds of a company’s asset value. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

Maximize Value; Minimize Cost. Your IP and You.

Sun, 28 Mar 2010 12:02:22 -0400

The Total Cost of Ownership (TCO) of your IP is staggering. It"��s estimated that the average cost over the course of the 20-year life span of a single patent is about $100,000.00 "�" or roughly $5,000 per year in maintenance fees. And that doesn"��t begin to cover the initial investment, which on average is about $150,000.00 to develop a single patentable invention. That"��s due in part because the U.S. patent office currently rejects about 65% of all patent applications. Then there"��s the cost of IP litigation, which is estimated at approximately $4.5 million dollars in attorney"��s fees as well as the costs associated with financial compliance regulations such as Sarbanes Oxley. Also, if licensing is part of your business model (as it should be), there"��s the cost just to manage your licensing pipeline. Add it all up and you"��re talking about a huge investment. Given the TCO of individual patents, companies should strive to get a healthy Return on their Investment (ROI). One of the most effective things you can do to maximize your ROI is to embrace the concept of Open Innovation networks. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innography"ï¿½ï¿½s intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

The Power of the User Interface

Sun, 28 Mar 2010 09:08:22 -0400

Apple has always understood how important the User Interface (UI) is — because they’ve always focused on the “U” in UI: the User. I credit their success today for that very reason. From its inception, Apple has concerned itself with the user experience, beginning with the original Apple computer and most recently with the iPhone. They created things that met a market demand and made it easy for customers to use them. It was, in fact, this philosophy that brought the PC to a whole new class of people who really didn’t care about computers and quite frankly thought they had no use for them. Today, this same class of people probably couldn’t imagine life without their Mac or their iPod. That philosophy of embracing the user experience has been paramount to me since I set out to build a better mouse trap. As an inventor at IBM, I saw individuals struggle at the company as they tried to cope with large patent pools and patent related issues such as licensing and litigation that accompany them. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

Breaking the Information Barrier

Sun, 28 Mar 2010 03:03:45 -0400

There is a continuous question in analysis: Do you have enough of the right information to make a smart decision? Without the right information, there can be blind spots, gaps, or incomplete answers. Too often people have access to the right information, but do not incorporate it because it is too difficult to consolidate and bring it all together. It is largely a matter of simplicity — how easy is it to get the right information? Think of your own job; you know your company has knowledge about licensing deals, litigation, etc, but how often do you include it for competitive intelligence? There is a significant barrier today in which a vast amount of internal knowledge about a subject exists, but it is nearly impossible to incorporate that with external analytics. It’s almost universally the case, for example, that research teams and companies develop their own taxonomies of patent management, and they usually view these patents in the context of the market. For instance, a consumer packaged goods company might develop a patent taxonomy such as the following: an oral hygiene patents group containing a toothpaste patents group, which in turn contains a group of tooth-whitening patents. (e.g. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

How Much Is My Intellectual Property Worth? Setting a Value on Your IP?

Fri, 26 Mar 2010 07:05:14 -0400

While no standardized way exists to fully and accurately assess the monetary worth of your IP, you should have a sense of its real value. Several valuation models exist (some of which are more scientific than others) that are widely accepted. Here are just a few: Fair value measurements – Here you are basically asking, “What would a third party be willing to pay?” This analysis uses objective measurements such as price per engineer who created the technology, price per patent, licensing fee per brand recognition rate and price per unit generated from IP assets. This method is relatively simple and easy to use, but it might not produce enough data points to accurately reflect how much your IP is actually worth. Present value of expected future cash flows – This approach is based on discounted cash flows. Essentially, you examine past revenue that can be tied to your IP such as licensing fees, royalties and product sales revenue. You then use that data as a basis for forecasting future revenues. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

Mapping Patents to Products â Why Should You Care?

Thu, 25 Mar 2010 08:31:25 -0400

The business world runs on products. Profits and losses, revenue forecasts, and product offerings are all the lifeblood of a company and they’re all driven by products. It should come as no surprise, then, that you would want to protect your products with patented technology — but it turns out there is more to it than just protection. With a patent to product mapping, you could start assigning a true value to patents. With that improved capability you have a greater capacity to maximize the return on your intellectual property investment. That’s because you would have a better understanding of which patents are your most valuable and which have very little value. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

Intellectual Property Valuation â Intangible Assets and Your Ledger

Thu, 25 Mar 2010 05:43:45 -0400

A topic of interest to many of our customers is intellectual property valuation. IP professionals intuitively understand that IP has monetary value and use a number of ways to approximate it, but there is no standardized method for assigning a value to IP. A number of models exist that are useful to internally assess IP that can help professionals make reasonable decisions in disciplines such as licensing and mergers and acquisitions. Externally, though, these methods don’t conform to Generally Accepted Accounting Principles (GAAP). They don’t contain a way of dealing with critical accounting practices such as the principle of prudence or the concept of depreciation. Without a way to address these principles on a ledger, the valuations can’t assure reliability and accuracy to other businesses in an accepted way. In my view, the industry could benefit from a universally accepted set of methods for accurately assessing intellectual property patents because it’s a fundamental necessity to fully integrate your IP into your business. While a reliable model does not exist today, I’m confident that a GAAP conformant method will emerge within the next decade. Looking forward, what would be the tangible benefit of having such a method in place? **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innographyâs intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.

IPAM + IP Analytics = A Whole Solution

Sun, 08 Nov 2009 10:48:12 -0500

More than two-thirds of a company"��s asset value is represented by Intellectual Property (IP). As a result, companies often invest a lot of human and financial resources in an IP Asset Management (IPAM) system or process. Regardless of how sophisticated or basic the system, though, the effort to manage an IP Portfolio can be significant. It is important to consider the fact that an IPAM is essentially a document management system. Such systems are very good at helping people implement workflows and processes. Depending on how sophisticated the system is it can notify the maintenance requirements, and help understand the existing IP investments broken down by classification and suggest who should do what next. An IPAM can be implemented as a very sophisticated workflow and reporting tool"�"but what they can"��t do is provide analytic data about the portfolio in the context of other companies and markets. These systems range in complexity and sophistication from basic spreadsheets to expensive, enterprise-level patent software applications. Consider, for example, something as basic such as how to make the decision of whether to maintain a patent that is up for renewal. **End Summary** Topics: Intellectual property patents]]> patent infringement]]> patent software]]> protecting intellectual property]]>]]> About the Author: ]]> Innography"ï¿½ï¿½s intellectual property management business intelligence, and patent software solutions enables organizations of all sizes and industries to benefit from rapid results and cost savings to manage protect and exploit their patent portfolios.