“Build, License, Buy or Steal?”
For many businesses abundant R&D and patent filings provide a good foundation for innovation and sales freedom. But that may be changing.
Information technology companies are learning what Big Pharma realized some years ago: a strictly internal pipeline rarely is sufficient to fill all of most business’ IP needs. This is especially true in fast-growing consumer industries like mobility and social networking.
After the Nortel auction, Motorola sale and a spate of momentum changing patent litigation, traditionally tangibles-oriented executives are learning to be less sanguine about their IP resources.
Says Bruce Berman in his bi-monthly column, The Intangible Investor: “When it comes to patents, it is sometimes more efficient to secure what is needed from others rather than roll the dice on what a business might be able to generate internally or get away with legally.”
This month’s The Intangible Investor, “Build, License, Buy or Steal,” looks at how the decision to create, rent or acquire patents is becoming less confusing for some cash-rich companies.
It looks like a new role for C-level executives and activist investors may be emerging, now that IP value is on their radar.
Does this mean that highly significant patent portfolio or IP-based acquisitions will not get done without them? Should they?
A new level of IP/financial oversight will likely be good for most large businesses. Let’s hope we are right.
Image source: http://www.iam-magazine.com