How to Build IP Success in a
Changing Innovation Ecosystem

IP News and Information

The world of patent ownership and patent monetization has changed. It used to be anyone with a patent could use that intellectual property as a revenue stream simply by maintaining ownership. Many patent owners didn’t even have to manufacturer their product, system or idea. If they wanted to make money they simply had to find infringers and then file a lawsuit to collect a settlement or royalties on their IP. For those that did take their idea to market they could also make money by licensing their IP rights to others who wanted to use them as well. Owning patents have always been a valuable commodity, especially when an owner understands how to monetize them. However, times have changed and the patent game is profoundly different.

The Patent Ecosystem Has Changed

Thanks to the American Invents Act (AIA), plus several other important court decisions regarding patents and their validity, the patent world might not ever be the same. So does that mean that patents no longer have any value? Of course not, patents can, and still do, have a lot of value, but now the quality of a patent matters much more than just the fact of owning a patent. That means most businesses or individuals can no longer expect to make untold amounts of money just by owning patents. So how do patent owners make their intellectual property rights count in this new innovation ecosystem? They have to be doers. Individuals that are increasing their investments and building companies stronger companies by taking educated and calculated risks are the companies that will continue to succeed in this Changing IP environment.

Building a Strong Portfolio

Having an IP portfolio is still an important part of many successful companies, but it’s not enough for businesses to simply own IP. They have to understand how to use it. In order for a company to successfully monetize its IP it has to have a strong IP management strategy in place. That requires several important steps, the first of which is to develop a sound IP portfolio. In many cases, that requires developing organic patents as well as acquiring patents from other companies and/or individuals. It’s also important to make sure that your portfolio covers what your company really needs and that your patent claims are strong. Quality over quantity is a key principle to keep in mind when developing a patent portfolio.

Be Both Offensive and Defensive Minded

When it comes to any IP, it’s also imperative to have a well thought out offense, as well as a strong defensive strategy. You need to have both in order to succeed. That means you pay attention to would-be infringers but you also look for opportunities to license your patents to those who want to use them for their own revenue streams. You also need to work hard to keep your portfolio strong and relevant. That means, “You need to regularly evaluate your portfolio and offload any patents that are no longer relevant to your core business,” according to IPTrader President, Arlen Olsen. “Holding onto these patents can cost you more money just to maintain them, whereas selling them to another party could bring in unexpected additional revenue.” For cases like this it can be a good idea to use a broker, like IPTrader, to help you find potential buyers. The bottom line is that patents still matter, but you have to know how to use them properly in order to extract their true value.