Unlocking IP/IA Value : Leveraging IP as a Business Tool

David Llewelyn & Ng Lyn

IP Academy, Singapore

21 November 2006, Hong Kong

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

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

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

IP Commercialisation : Mind to Market

Licensing & Franchising

Divestments & Spin-offs

Financing Strategies

Merger & Acquisition

Strategic Alliances & Collaborations

Common Value Extraction Strategies

Challenges for IP Commercialisation in Asia

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

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

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

Best Practices

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

IP Strategy Is Highly Contextual

Corporate Vision

Corporate Strategic Objectives

Strategies & Roles for IP IAM Purpose

IP Policies &Guidelines

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.

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.

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

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

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

The Way Forward

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

谢谢！

Thank You!

6 Raffles Quay#17-01Singapore 048580Tel: +65 5363630Fax: +65 5369334

Mr David Llewelyndavid_llewelyn@ipacademy.com.sg

Ms Lyn Ngng_lyn@ipacademy.com.sg

Creating an edge in the knowledge economy