IP Look-Ahead for 2022: Fewer Big Patent Wins, More Efficient Monetization

In the decade since the adoption of the America Invents Act (AIA) patent licensing has become more arduous for many technology companies and independent inventors.

The days of single patent, inventor-generated patent licensing and headline-grabbing damages awards may not be over, but they are no longer the future.

Increasingly, IP rights depend on WHO owns them and HOW they are used. Litigation-based models will yield to more efficient ways of extracting value. Patents today are often worth more in the context of M&A, as a part of a company sale, than they are individually – despite however strongly they may read on an infringer’s product.

New Meaning

Many tech patents are CHEAP. In the hands of the right buyer, they can take on new meaning and greater value.

Six of 13 IP trends for 2022 likely to impact the Intangible Investor:

  • More IP rights, longer disputes, fewer large damages awards that stick
  • Continued high hurdles for small and medium enterprises (SMEs) and independent tech inventors
  • A few large IP holders will file less and aim for greater quality
  • Others will continue to file in volume, largely for defensive purposes
  • A wider range of capital providers will be willing to offset IP-related risk
  • Smarter private equity investors will learn where and how to place their IP bets

For an additional seven trends read the full Intangible Investor column on IP Watchdog here. 

Penny Stocks?

Sooner or later, for better or worse, individual investors will be trading IP rights like penny stocks. That may not be the best thing to happen, but like stock-buyers, it encourages the more serious-minded seeking return to learn how underlying values are generated.

The days of single patent, inventor-generated patent licensing and headline-grabbing damages awards may not be over, but they are no longer the future

Do not underestimate the power of social media. It has turned some meme stocks into winners, and it has made crypto more attractive as an investment than a currency. NFTs are in their infancy and IP rights will play a role — even if it has more to do with their absence than presence.

Value, Transactions, Capital

The transition to greater IP awareness is underway. It will materialize slowly over time, but when it does, expect to see higher values, more transactions, and even better access to capital. Increased participation from a wider range of parties is no panacea, but it will put IP rights and values on the business radar in a way that did not seem possible a few years ago.

Image source: UnifiedPatents via limestonereport.com

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