Now Is The Time
To Capitalize On Your Intellectual Property

IP News and Information

Pop quiz: Do you know how much your company is worth? Of course, if you ask, most companies could tell you exactly how much they’re worth. After all, the bottom line drives the business world and success is measured by how many zeroes follow the first number in a company’s valuation. Next question: So what about the value of your intellectual property (IP)? Could most companies and other organizations tell you how much their IP is worth?

Would it surprise you to discover that many companies actually have more value in their IP – patents, trademarks and copyrights – than they have in overall sales? In fact, would you believe that some of the world’s largest companies actually fall into this category? This concludes the pop quiz…for now.

For years, intellectual property was just a small part of a company’s overall value. However, in our age of the knowledge-based economy, intellectual property makes up about 80 percent of companies’ corporate assets. That’s an enormous shift from 40 years ago, when 80 percent of companies’ corporate assets were tangible assets.

During the 1990’s, when its business was quickly losing market share, electronics and semiconductor manufacturer, Texas instruments, monetized its patent portfolio by going after infringers. That decision led to long-term gains for the company, resulting in nearly $1 billion annually in revenue from licensing its IP. In some years, TI’s IP revenue has even surpassed revenue from sales.

IBM is another company that has generated billions in annual revenue from IP monetization. Nokia and Kodak have also produced billions of dollars in revenue from aggressively licensing their intellectual property. In fact, Kodak has stayed in business in large part because of its patent licensing revenue.

If those numbers surprise you then maybe it’s time to give your company’s intellectual property a closer look. Consider this: if you own IP have you ever wondered what it might be worth to other companies or individuals in the U.S. or in foreign countries? Perhaps your company or organization is sitting on intellectual property right now that could be extremely valuable around the world?

Universities, companies and individuals envision new ideas and create new products every day. So what happens if they don’t file for ownership of these products? What if they start to sell them before they’ve received a patent or trademark? Can they still file for those rights at a later time? Even those companies that take the necessary steps to claim ownership of intellectual property might still be missing out on big opportunities to commercialize and capitalize on that IP internationally.

Now is the time for universities, individuals and companies – including biotech companies – to start thinking outside the box. It’s time for these entities to stop trying to hide their intellectual property and instead start capitalizing on it. Now for an extra credit question: So how do you capitalize on your IP?

The realm of IP is full of opportunities and there are several emerging markets, strategies and companies designed to help companies, universities and individuals monetize and commercialize their intellectual property. IPTrader has developed an innovative monetization strategy to help organizations and entities maximize their IP value.

Consisting of several different business units including brokerage, patent rights accumulation and consulting, IPTrader experts have a wide range of expertise in the monetization and commercialization of intellectual property and its impact on the international economy. We can help you discover the true value of your intellectual property and capitalize on that value throughout the world.