This month’s Patents2Profits® Newsletter discusses how IP creates value and how this might be captured. We all like to think our inventions will be valuable, but the truth is that this depends on finding a good use for them. And if our IP no longer suits our needs, then another company might make better use of it.

Strategic Alignment

The most valuable IP for our company is that which aligns with our strategic objectives. It should enable the creation of products and services which aim to deliver our company’s goals. But Intellectual property is often created long before market needs are understood. So we should keep checking if it is still aligned.

Defensible Advantage

Protecting a competitive edge is the best way for IP to create value. DeepTech startups often build a portfolio of patents and trade secrets to defend their products’ most valuable features. By enabling benefits which competitors lack, your IP can help capture market leading customer value.

Perils of Patenting

Sometimes a busy IP landscape can constrain what is patentable. By the time your patent is granted, it may be much weaker than intended. And failed patent applications can give your competitors an advantage when they are published! So you might also benefit from reading others’ abandoned and expired patents.

More than Patents

Technology companies tend to perceive patents as the most valuable form of their inventions. But every strong Patent needs a lot more work to become a great product. Insights into product architecture, system integration and production processes can add huge value. Good product designs can provide a competitive advantage even without a granted patent. Trade secrets can be also powerful, especially when they are hard to reverse engineer. Intellectual property includes a lot more than just patents.

IP and Pivots

Our strategy can change as our company matures. Intellectual Property which once seemed advantageous might suddenly be less useful. Our latest products may target a different market with a new value proposition. And we may create more IP which fits better with our new strategy. While a large IP portfolio creates a good impression for investors, it can be expensive to maintain. This is when it’s good to consider which IP is essential for your future success and what is less useful to you.

Surplus IP

When IP is no longer needed then it’s hard to know what to do with it. Cancelling patent fees will kill any remaining value. Waiting for opportunities to utilise patents may extend costs unnecessarily. Seeking potential buyers can be time consuming. This is where Alliance has helped our clients in the last few years.

Helping you divest your IP

Alliance’s systematic process makes it easier to define an IP value proposition for potential acquirers, identify suitable prospects and approach them. The IP Value obtainable depends on both the advantages it provides and the buyer’s motivations. We help you position your IP to create the maximum acquisition value.

From Inventions to Income

Our ‘Patents to Profits’ tagline was conceived to describe how we help clients build profitable businesses from their inventions. This means developing their IP into products which meet unmet needs, to create and capture value.

But sometimes your quickest path to profit is not straightforward. Plans can change and other companies may have a better chance of commercialising some of your IP. In this case it might be easier to sell some of your inventions and invest the income into your other projects. We can help you do that.

If you’d like to discuss how to turn your intellectual property into cash, please get in touch!