Intellectual Property is proving to be the primary driver of corporate earnings.

According to some experts, over 85% of the market valuation of the S&P 500 is represented by intangible assets. However not all patents are valuable and intellectual property is often mismanaged.

• Fewer than 3% of patents generate royalty income.

• The Harvard Business Review reported that more than $1 trillion annually is wasted in patent assets. Failing to harness the power of IP is equally as negligent as failing to assign value to a company’s IP portfolio. For instance:

•  Some authorities have calculated that patent licensing alone    should soar from the $110 billion it generated in revenue in 2000 to $500 billion by 2015.
•  Qualcomm has generated as much as $430 million in licensing revenue in recent quarters while IBM has consistently brought in between $1.5 and $2.0 billion annually in licensing royalties. 

Of course, mismanaging IP may lead to loss of patents, allegations of patent infringement and reserving enormous sums of money. For instance:

• Research in Motion settled its patent dispute for $612 million.

• Lexar won a $425 million judgment against Toshiba for misappropriating trade secrets. 

• Pfizer lost its patent for Viagra in China.

• Brody Berman Associates estimates that the cost of patent litigation on major cases averages $4 million to $15 million and can exceed $100 million.

Don’t miss this unique opportunity to listen to world-renowned authorities discuss a multitude of methods for deriving value from intellectual assets. Hear the best strategies for insulating your patent portfolio from legal challenges. Here's your opportunity to learn the groundbreaking techniques for valuing an IP portfolio.

Intellectual Property is a Primary Driver of Corporate Value and Corporate America’s Achilles Heel

Today’s most powerful value driver of an enterprises’ growth lies in its intellectual property portfolio. As Alan Greenspan said, "the economic product of the United States has become predominantly conceptual." The ability to introduce innovative products, to secure better production methods, to become the sole provider of particular merchandise all emanates from securing intellectual property rights. 

Most institutional investors and corporate managers respect intellectual property as a legal construct. However, both Wall Street and Corporate America have failed to appreciate the value generating ability of IP. Thus, Corporate America has neglected to actively manage its IP portfolio and professional investors have been remiss in trying to assess the value of IP resident in the companies in which they invest. 

Savvy business and portfolio managers are beginning to appreciate the fact that IP is more than a legal claim on ingenuity. IP is becoming a revenue producing asset, a crucial ingredient in enhancing corporate brand equity and a weapon to attack competitors. However, the value of IP portfolios may be diminished by reverse engineering and patent expirations. Also, asserting rights to IP is often a necessary, albeit dangerous, proposition as such assertions can boomerang in viscous countersuits.

Don’t miss this unique opportunity to listen to leading IP professionals discuss best practices for managing, defending and valuing intellectual property.

I look forward to meeting you in San Francisco on July 20th.

David Wanetick
Managing Director
IncreMental Advantage