How do you know when it is time to conduct a portfolio analysis for intellectual property protection?
The biggest factor indicating a need for analysis, when looking at your intellectual property portfolio, is if you recognize a giant gap between your expectations and reality. If you are consistently staring at your patent monetization expectations from across the void, it is definitely time to reevaluate your patent portfolio.
An IP portfolio analysis allows you to understand why your intellectual property is under performing. When you know what is going on and, more importantly, why it is happening, it is a great starting point for aligning your patent portfolio with your business goals.
The following five investor success tips are helpful for refining your intellectual property so your patent monetization efforts are fruitful.
1. Invest In Smart Patenting Processes
One way to ensure your patent portfolio is primed for patent monetization is to intimately understand and predict where innovations in your industry may be headed in the next five to 10 years. That is no small order, which is why it is smart to invest in a strategic patenting program.
Partnering with an ip consulting firm that is well versed in IP portfolio management protection assists you in strategically patenting technologies that hopefully develop and grow in value over time, so you are never wasting resources again.
2. File For Patents Quickly And Efficiently
The America Invents Act enacted in 2013 changed the U.S. patent system to a first-inventor-to-file system. What this means is that disclosing your invention to the patent office before a competitor is paramount for protecting a strong patent portfolio. Getting to the patent office first protects your investment in your portfolio.
As an investment strategy, in order to file for patents before your competitors, you need to stay on top of technologies and have insight into where your industry is likely going next. It is highly recommended that you partner with a proven intellectual property consulting firm that acts as your eyes and ears in the field at all times to ensure intellectual property protection.
3. For A Patent Acquisition, Consider Its Value Over Time
When it comes to enriching your patent portfolio, keep in mind that patents have a shelf life. It would be shortsighted to ask for future royalties for a license to use an expired asset.
To get the most from your investment, you almost always want to purchase intellectual property with an optimal shelf life. An industry-relevant patent with 15 years before its expiration date is normally more valuable than a similar patent with only three years left on it. However, keep in mind that the older patents have earlier filing dates and could likely be better suited to survive validity challenges.
4. Put In The Appropriate Amount Of Due Diligence
To be effective and meet your investment goals, IP portfolio management is a labor-intensive project. You need to know the market, the technology and the patent’s potential. You also need to have a good intellectual property protection firm on your side.
You must know when there is a possibility of patent infringement and when that can eventually lead to patent licensing or an infringement suit. Also, since not all of your patents are going to be cash cows, you may need to consider if pruning your portfolio makes the most sense long-term.
Partnering with an intellectual property consulting firm helps you identify potential infringers to pursue licensing and/or lawsuit strategies, or possibly even parties who could be interested in monetizing your under performing patents.
5. Do Something With It!
It is not likely that a competitor is going to approach you, hand you cash, and ask politely for a license to your patent. Owning a patent gives you the right to exclude others from making or using the claimed invention. Without at least considering exerting your rights, your patent is not worth much to anyone.
You get out of your patent portfolio what you put into it. When your patent application is granted or you acquire a new patent, it is important to have a strategy in place. Your plan may involve anything from making a product to enforcing your intellectual property through patent litigation.
Patents are not meant to be collectibles you put on a shelf to admire. Many people want to license their patents then sit back and collect royalties, but a licensing strategy is only feasible if you are willing to invest the necessary time and effort. The important thing is to keep your patent portfolio active.
If you are looking to better align your patent portfolio with your business investment goals, it’s time to conduct a portfolio analysis with the help of an intellectual property consulting firm. As you begin to understand your portfolio’s strengths and weaknesses, you are then able to set a strategic plan to get your intellectual property working in your favor.
Ready to learn more about portfolio analysis and how to apply investor tips to turn around your under performing intellectual property? Contact the patent portfolio experts at TechPats today.