An impressive patent portfolio gives you a competitive advantage, sure! But did you know that intangible assets such as patents could also generate revenue for your business?
These intellectual assets signify heavy investment in innovation which can be identified by looking at a company’s IP portfolio. This allows any business to avail maximum revenue and to maintain a competitive edge in the market.
If you still think that investing largely on patents is unnecessary for your business, allow us to change your mind.
How to extract ROI from your patent portfolio?
Let us begin by understanding how you can assess the Return on Investment (ROI) value of your company’s patent portfolio. To initiate with, one needs to recognize their company’s ‘star patents’ or ‘gold patents’.
These are the patents whose licensing becomes crucially integral because of its unique technology implementation, especially in a tech domain. Such gold patents avail the maximum ROI and help the company to earn revenue in millions.
An impressive strategy to help the patent portfolio management is to create a taxonomy of the patents. The patent portfolio of the firm should be sorted as per the value they offer to the business. Such a value-based classification ensures patent protection as well as in the recognition of star patents which would unearth maximum ROI.
An exhaustive patent search can be implemented by the R&D domain of the business to identify and classify the patents based on their ROI values. The ‘core patents’ are the ones that are associated with the company’s upcoming products, target audience, and suppliers.
These are the patents that hold great value as they provide a strategic benefit in the market competition. Hence, core patents are best monetized and provide the maximum ROI through an increased market share, sales revenue, and an enhanced enterprise value.
Another important type of patents that shall be considered while creating an impressive patent portfolio is the standard-essential portfolios.
These are defined as the patents which provide standards to use a protected innovative technology and are of great value to the producer company. This encourages innovation, especially in the field of technology.
Next in line are the ‘non-core patents’ which presumably are of greater importance to a third party than the actual producer company. Such patents might provide comparatively low ROI and can be considered in the end while creating an effective patent portfolio.
What are the benefits of extracting ROI from patents?
One of the most common advantages of patenting an innovation is its protection. However, through these years large corporations and small businesses have realized the importance of availing ROI from their patents.
Earlier, businesses considered that a patent license was the only important part of an IP system and consider it to be an intangible asset that needs the least investment.
However, with the advancing technology people have realized the need to create an efficient patent portfolio as an integral part of its processing.
- ROIs are very important for boosting any investment the company makes. Thus, the identification of patents that avail the highest ROI becomes crucial for the company’s investment strategy.
- It also develops a strategy and provides a vision to the company’s flow of innovation, which provides promising results in the upcoming future with comprehensive portfolio management.
- ROI identification and extraction allows the company to carry out a strategic analysis of IP data, creating a focused and organized structure for the development of innovative technology or product.
- Increased productivity and tax advantages are also enjoyed by the company which invests in patent portfolio management to avail ROI.
IP portfolios of any company provide an elevated sense of business management and development that enhances its productivity, processing, as well as sales of the innovative technology.
Hence, management of the patent portfolio does not only protect the company’s Intellectual Property but also a way to avail maximum potential it possesses.
Patentskart is an IP support services company that provides services related to patent portfolio management, patent litigation and prosecution, portfolio analysis, ranking, patent infringement analysis, and competitive landscape analysis.
They help in maximizing the business potential by providing patent licensing and patent analytics services to build an impressive and highly effective patent portfolio.