Companies make huge investments in developing and maintaining patents. It is a complex task that requires resources and efforts. Therefore, it is imperative to develop a robust patent licensing and monetization strategy through expert advice. This helps an organization to not only safeguard its investments but also maximize returns.
The monetization of a patent usually begins with its valuation. A patent may either directly increase revenue or indirectly decrease costs, thereby increasing profits. In some cases, patents do not directly affect the revenue but serve other purposes such as technical security. A tech-based company might accumulate patents as promotional tools to enhance its reputation as a technological leader. Hence, patent valuation needs to be done after identifying the purpose of the innovation and its effect.
The valuation is followed by patent licensing and cross licensing. Through patent licensing, the owner can allow one or two companies to use the patented invention in exchange for royalty or compensation. In cross licensing, two or more parties grant rights to each other to use their individual patents.
A patent owner also has the option of divestiture or selling off the patent to the highest bidder. This requires due diligence, risk analysis and checks for potential infringement. Thus, organizations need an expert’s guidance to conduct the patent licensing and monetization process smoothly.
Patent litigation is another crucial aspect that needs a consultant’s expertise. It involves complicated and judicial proceedings against an alleged infringer. Therefore, patent owners should consider the possibility of patent infringement litigation during any monetization process and make it a part of its strategy.
External consultants are required to support litigation teams. These consultants should hold unbiased opinions and can assist in creating an iron-clad case. They can (a) evaluate the potential for infringement, (b) assess validity risks, and (c) conduct market and economic analyses.
In conclusion, patent licensing and monetization is critical to managing an Intellectual Property (IP) portfolio successfully. Understanding intricate nuances of patent valuation is not easy, as it requires expertise, experience, and judgment. Not employing the right monetization strategy or inaccurate IP valuation are oversights that can prove to be expensive for the company. This is where external consultants can add exclusive value. They apply an unbiased approach to assist an organization in designing a smart, flexible, and savvy patent monetization strategy that is both profitable and effective.