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A Follow-Up: From Patent Wars to Patent Profits
Last week, I published my review of Fred Warshofsky's The Patent Wars, a book published in 1994 that chronicles the transformation of U.S. patents into weapons of economic warfare. In response, one of my readers kindly suggested I look at another book from that era, Rembrandts in the Attic (2000), noting it might be "potentially relevant" to my perspective on the U.S. patent system.
I am grateful for the recommendation. I have now read the book, and I can confirm it is not just relevant but also a necessary next step in strategy.
If The Patent Wars describes the battlefield, Rembrandts in the Attic provides the battle plan. It moves the conversation from the courtroom to the boardroom, explaining how patents evolved from legal swords into powerful, revenue-generating corporate assets. For any European professional seeking to understand the business logic driving American competitors, this book is an indispensable guide. It explains how to implement the aggressive, value-driven strategies that Warshofsky's book only began to describe.
Background and Perspective
Published in 2000, at the peak of the dot-com boom, Rembrandts in the Attic captured a pivotal moment in US corporate strategy. The old industrial economy was giving way to a "knowledge-based economy," and for the first time, the intangible assets of a company—its ideas, its brands, and its patents—were becoming more valuable than its physical factories and inventory.
As a European patent attorney who had just qualified at that time, I remember this shift well. My training had been rooted in the technical and legal precision of the European system. This book, however, describes what I started to perceive as the American, business-centric view of patents. It was not about securing legal rights for their own sake; it was about generating shareholder value. To me, it looked like a new way of thinking, where patents were no longer just a concern for the legal department but had become a core responsibility of the company's leadership.
Author's Purpose
Kevin G. Rivette and David Kline wrote this book not for lawyers, but for business leaders. Their purpose is stated directly in the title: to show C-suite executives how to find the "Rembrandts in the attic", the masterpieces of innovation hidden away in their companies' patent portfolios, and turn them into sources of profit and competitive advantage. The authors aim to provide a practical, strategic primer on making intellectual property (IP) a central pillar of corporate strategy.
Main Themes of the Book
- Patents as Tangible Business Assets: The book's central metaphor reframes patents not as abstract legal rights but as valuable, albeit underutilized, assets that can be managed, leveraged, and monetized just like real estate or equipment.
- IP as a C-Suite Responsibility: It argues that IP strategy must be driven from the top down. The book uses the case of Xerox's then-new CEO, Rick Thoman, to illustrate how a leader with a clear IP vision can transform a company (p. 57-61).
- Actionable Strategic Frameworks: The authors introduce concrete tools for IP management, including the "Grow-Fix-Sell Triage" for aligning patent strategy with business unit goals (p. 68-69) and the IP Audit Map used by Dow Chemical to identify licensing opportunities and save millions in maintenance costs (p. 67-68).
- Patents as Financial Instruments: The book explores how patents can be used to generate new revenue streams through licensing (IBM's $1 billion/year program, p. 58), secure financing for startups, and even form the basis of asset-backed securities.
- Patent Mapping for Competitive Intelligence: It demonstrates how analyzing patent data can reveal competitors' technology roadmaps, identify acquisition targets, and help companies avoid costly infringement lawsuits.
What Makes This Book Unique
While The Patent Wars tells the story of conflict, Rembrandts provides a playbook for value creation. Its uniqueness lies in its practicality and its executive-level focus.
- Aimed at the CEO, Not the Lawyer: This is its most radical and important feature. It speaks the language of business, such as market share, shareholder value, and P&L. And it makes a compelling case for why the CEO must lead the company's IP strategy (p. 64, 89).
- Provides Concrete Tools: The "Grow-Fix-Sell Triage" and the IP Audit Map are not abstract theories; they are practical, visual frameworks that managers can apply directly to their own businesses.
- Focus on the Internet Economy: The book was one of the first to analyze the strategic importance of patents in the then-nascent e-commerce sector, using examples like Priceline.com's business method patent to show that the "first to patent" was becoming more important than the "first to market" (p. 174).
- Case Studies in Proactive Strategy: The stories of Dow Chemical, Xerox, Dell, and IBM are presented not as litigation war stories, but as case studies in how to build a corporate culture around proactive IP management.
Did the Author Succeed?
Yes, I think so. Rivette and Kline succeeded in creating a landmark text that helped define the field of intellectual property asset management. The strategic principles it lays out, namely auditing your portfolio, aligning patents with business goals, and using IP for competitive advantage, are more relevant today than ever. While some of the financial figures and specific legal precedents are now dated, the core strategic logic is timeless.
Strategic Lessons for European Practitioners
For European patent attorneys and their clients, Rembrandts in the Attic offers a glimpse into the American corporate mindset. While European practice often emphasizes technical precision and legal aspects, this book shows that U.S. competitors view patents as tools for achieving specific business and financial outcomes.
Understanding this perspective is important. When negotiating with a U.S. company, you are likely dealing with a team that has already mapped your patent portfolio, assessed its own competitive gaps, and calculated the financial value of a potential license or acquisition. They are not just thinking about legal risk; they are thinking about shareholder return.
Bottom Line
Is this book still worth reading today? Absolutely.
Read The Patent Wars to understand the battlefield of U.S. patent litigation. Read Rembrandts in the Attic to get the battle plan.
This book is the perfect strategic companion to Warshofsky's historical narrative. It provides the frameworks, tools, and executive-level mindset needed to navigate the world that The Patent Wars described. For any European professional advising clients on U.S. patent strategy or facing American competitors, it remains essential reading. It helps explain not just how the U.S. system works, but why it is driven by a relentless pursuit of value.
Martin "Patents with a Purpose" Schweiger
IP Lawyer Tools by Martin Schweiger
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.
