A survey of 300 in-house lawyers and outside counsel reveals that patent monetization is not something relegated to so-called patent predators or “trolls,” but is very much on the agenda of business large and small.
Generating direct ROI from patents, the findings show, is either is a goal of well over half the companies or their legal advisors believe should be.
Defining patent monetization is not a one-size fits all exercise. Most often, it has to do with out-licensing, sale of rights or enforcing infringement claims.
Shift in Attitudes
There has been a shift in attitudes over the recent ten years with 77% of in-house lawyers and 83% of law firm lawyers viewing patent monetization as “both a legitimate business approach and a driver of innovation and economic growth.”
79% of in-house lawyers say more than one quarter of their company’s patent portfolio is underleveraged.
72% of law firm lawyers agree that the significant cost and uncertainty of litigation is a deterrent to their clients’ ability to enforce their patents.
Patent “divestitures” are expected to grow. The sale or spin-off of patent assets-has become a key strategy for businesses optimizing their portfolios. “Leading global brands are increasingly leveraging divestitures to streamline operations, unlock capital and drive long-term growth.”
The Declining Value of Patents
This last trend documented by Burford Capital, the largest litigation funding operation, is dependent on industry, company size and the nature of the portfolio. Clearly, something can be done with underutilized or unwanted patents, but selling in recent years has not been what it was prior to the America Invents Act (AIA) the eBay, Inc. vs. MercExchange, L.L.C., which effectively eliminated injunctive relief for infringed parties in the U.S.
In 2011, before the implementation of the overly zealous AIA, Apple and Microsoft, along with Sony, BlackBerry, and Ericsson), paid $2.5 billion for bankrupt Nortel’s smart phone-related patents.
Today, due to IP uncertainty, no patent portfolio could come close to generating that level of value, unfortunate for innovators of all sizes and types, and a veritable pay-day for many large companies, which have been emboldened not to take patent licenses unless forced to.
Tap here for the full report, “Patent Monetization Survey – In-house and law firm lawyers weigh in on generating revenue from corporate patent assets.”
Image source: Burford Capital
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