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Unlocking IP/IA Value : Leveraging IP as a Business Tool
David Llewelyn & Ng Lyn
IP Academy, Singapore
21 November 2006, Hong Kong
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Changing Paradigm : Value of Intellectual Assets
IP is not just a LEGAL TOOLIP is not just a LEGAL TOOL
Tradeable“commodity” in
its own right
Tradeable“commodity” in
its own right
Vital tool to sustain a company’s
competitive edge in the global economy
Vital tool to sustain a company’s
competitive edge in the global economy
Asset that is fast becoming a focus of
capital markets and the investment community
Asset that is fast becoming a focus of
capital markets and the investment community
Increased tremendously
in value inthe last decade
Increased tremendously
in value inthe last decade
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Most of Today’s Successful Companies are Asset Light & IPR Rich
5.0
4.0
3.0
2.0
0.5
1.0
200520001945
Ratio of intangible assets to physical assets had risen over 50% by 2002
Ratio of Intangible Assets to Physical Assets
Analysis from PriceWaterhouseCoopers
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Start Thinking Strategically about IA and IP………
As part of the business process
Manufacture/Sell or Partner or License or Start Up or a combination
When considering spending on R&D: ease of copying/reverse engineering?
In employment contracts/in shareholders’ agreements
Launching of new products or services: building the goodwill.
Internationalisation/Breaking into New Markets
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IP Commercialisation : Mind to Market
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Licensing & Franchising
Divestments & Spin-offs
Financing Strategies
Merger & Acquisition
Strategic Alliances & Collaborations
Common Value Extraction Strategies
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Challenges for IP Commercialisation in Asia
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The Challenges
To bring IP out of the marketing and legal departments and into the boardroom
Management Disconnect : Failure to realise how IP assets can be used to support company objectives
To make IP an integral part of the business
To be prepared to spend time (and money) today for value enhancement tomorrow
To build your IP asset-base for the long term
To be proactive and creative
To spend your money wisely
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Some Common False Assumptions…..
“Every time we license or sell a technology we
are selling the farm”:
Licensing out patents/IP does NOT undermine a company’s competitive edge.
Patents are an asset in themselves
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And Yet More Common Barriers to Effective Commercialising….
Lack of Clarity of Ownership
Unrealistic Valuation of IPLimited understanding of pricing
Lack of Skilled Staff to manage IP and IA Assets
Majority do not have the inter-disciplinary educational background which will allow IP to make a full contribution
If the full potential of IP value is ever to be realised, there is a need for adequate educational opportunities that approach the subject holistically from a business, legal and technical point of view
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Best Practices
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It is important to understand the IP life cycle and stage of development a business has to be at, in order to exploit IP.
Protect (IP Law + Strategy)
IP Lifecycle
Rescue & Enforce (Protect market
share)
Commercialise IP :
(Licence, standards strategic relationship)
Create (R+D)
A Virtuous IP Life Cycle
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IP Strategy Is Highly Contextual
Corporate Vision
Corporate Strategic Objectives
Strategies & Roles for IP IAM Purpose
IP Policies &Guidelines
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Generic Best Practices applicable to ALL
Consider your IP and IA position regularly, throughout all the business processes
Evaluate your competitors’ IP and IA positions, to provide competitive intelligence.
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What does Intellectual Asset Strategy involve……..
Create framework where :
IP activities within company are consistent with both
Marketing strategy and
R&D strategy.
Realise where you are: after determining the IPM sophistication level of your company, you will be better prepared to extract appropriate value from your portfolio
Be clear about what kind of value your company is interested in.
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Knowing What You’ve Got
IP Best Practices: To look for strategic and blocking IP opportunitiesAppoint IP Manager who owns the issue
Recording the rightsLab Notebooks
The identification of potential IA and IP rights, and the IP protection process, becomes an integral part of strategy development and R&D projects.
Product Development
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The Other Side Of The CoinRisk Management Strategies
Know Your Enemy – a valuable resource in strategy development and in R&D projects and planning
Use patent information databases
Patent mapping
Trade Mark Searching
Use your foreign partner
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WHEN INTERNATIONALISING:Don’t go undressed
Go prepared
Be proactive, not reactive
Do your due diligence
Or aloneTake advice before it’s too late
Create Leverage: Build the IPR bargaining chips
Finding the right local “partner”
Horses for Courses: Choose The appropriate IPR’s
The appropriate method of exploitation
Internationalisation Strategies and IP
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The Way Forward
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The Future IP Roadmap
Technologies more and more overlapping
Licensing, joint ventures, strategic alliances becoming more andmore common
IP/IA an increasingly important bargaining chip in deal making
Involve your IP team in decision making
Recognise the human dimension : New Breed of IP Entrepreneurs vs Highly Specialised professionals
Take the time to create your IP roadmap
and then follow it
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谢谢!
Thank You!
6 Raffles Quay#17-01Singapore 048580Tel: +65 5363630Fax: +65 5369334
Mr David [email protected]
Ms Lyn [email protected]
Creating an edge in the knowledge economy