The different models available for the effective management of an intellectual property portfolio.
Intellectual property (IP) plays a crucial role in innovative and dynamic companies, to maintain competitiveness and drive growth. Effective IP portfolio management ensures that companies and individuals can protect their various inventions, designs, and trade secrets, while monetising these IP assets.
What is Intellectual Property Portfolio Management?
IP portfolio management is a strategic approach to identifying, managing, and protecting a company's intellectual property assets. A further important branch of intellectual property management relates to the monetisation of a company's intellectual property assets, which include patents, trade marks, copyrights, and trade secrets. IP portfolio management is integral to safeguarding a company's creative efforts and ensuring their potential and current value is fully realised.
Efficient IP portfolio management involves several processes, including, evaluating, protecting, enforcing, monetising, as well as making strategic decisions about maintaining or divesting certain IP rights.
Models of Intellectual Property Portfolio Management
Companies should be aware of the various models available to effectively manage their intellectual portfolio:
- Defensive Model – This model is typically employed by companies aiming to protect their inventions from competitors. The focus is on securing IP rights to create barriers around their tech and prevent competitors from copying and/or using their innovations. An example of a company using this model is IBM. With one of the largest patent portfolios in the world, IBM leverages its patents defensively, creating a protective moat around itself.
- Offensive Model – Organisations using this model actively seek to generate revenue from their IP assets. This might be through licensing or selling their IP rights. The offensive model can be an aggressive strategy that involves asserting IP rights against competitors to achieve a market advantage.
- Hybrid Model – This model combines the defensive and offensive strategies. Companies employing a hybrid model protect their core technologies while seeking opportunities to generate revenue from their IP. Google is a prime example, it vigorously protects its core search engine technology, while also leveraging its IP portfolio to generate licensing revenue and gain strategic partnerships.
Managing Your IP Portfolio
Effective management of an IP portfolio requires a strategic approach and continual assessment. Here are some steps to consider:
Evaluation: Regularly evaluate your IP portfolio to identify and determine key assets. This process can help pinpoint gaps in the portfolio that need to be filled and identify opportunities for monetisation.
Protection: Ensure that your intellectual property is properly protected. This involves filing patents, registering trademarks, and recognising trade secrets and copyright protections that require additional precautionary measures and protocols to be adopted by the company.
Enforcement: Have a plan in place to enforce your IP rights if they are infringed. Ensure that measures and considerations have already been taken to enforce your rights as soon as possible. A delay in enforcement may result in being unable to fully protect your IP and lead to significant long-term consequences.
Monetisation: Explore opportunities to generate revenue from your IP. This could involve licensing your tech to other companies, divesting IP rights, or using your IP to form strategic partnerships.
Companies should additionally take note of innovative and creative IP portfolio management models that do not revolve around the protection of or monetisation of a company's IP but relate further to awareness, marketing, and adoption.
- Freemium Model: This model provides access to the basic services and/or products free of charge but requires a once of payment or subscription for premium features or benefits. Frequently used in the software industry, examples of companies that utilise the above model are plentiful and include the likes of Adobe, YouTube, and Zoom.
- Creative Commons (Free Conditional Use) Model: The use of Creative Commons (CC) licencing agreements allows owners of various forms of copyright to permit certain types of free use while potentially reserving rights for commercial uses or derivative works. The use of a Creative Commons licencing agreement is often used in relation to open-source software. Allowing users to amend and create an ecosystem around the specific software, which allows for the growth and adoption of the product, creating an optimum environment for the generation of additional revenue streams.
Although there are typical IP strategy models, there is no one-size-fits-all solution for a company's IP stratagems and initiatives. The most appropriate strategy can easily be determined upon diligent consultation with IP specialist attorneys who also have commercial inclinations. IP portfolio management is a critical aspect of any company's strategic planning. By choosing an appropriate model, companies can not only safeguard their innovations but also explore avenues for revenue generation and growth. With the rapidly evolving business environment, an effective IP portfolio management strategy is more important than ever.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.