Patent Intelligence for Open Innovation
Intellectual Property is a boardroom issue. Patent intelligence – the transformation of content found in multiple patent documents into technical, business and legal insight – is a key element of competitive advantage. When applied to open innovation, the transfer of ideas and assets between innovative parties becomes a higher-value, shorter-turn competency. In an era in which more than 80% of market value is defined by intangible assets, leveraging patents for in- or out-licensing provides powerhouse opportunities for revenue enhancement and cost avoidance while building sustainable product differentiation.
Importance of patent intelligence to licensing as related to open innovation
Patent out-licensing is a key source of value extraction for all types of technology, service and product companies. Patent in-licensing is a growing approach to “fencing in” or “fencing out” innovation in important strategic areas. Both licensing activities together create the engine of commerce around the growing markets for freely tradeable technologies - intangibles and ideas.
The key to exploiting patent intelligence for open innovation involves correlating data discovered in patents to other market and financial information to enhance the identification, management and leverage of product development, no matter what the source of that development. Specifically, patent intelligence when used effectively creates an “information inbalance” - where more or less certainty within one party can drive deal terms, pricing, speed and ultimately market dominance.
In order to take advantage of the enormous insights available from patent intelligence as applied to open innovation, it is important to equip decision makers with the knowledge of how to extract and articulate the value of such intelligence. More than dialogue is required – demonstration is the key. Typically, the returns from patent licensing can be quantified more than the value of simply collecting intelligence. Therefore, it is important not only to establish metrics but also to develop lines of communication that briefly, succinctly and measurably visualize the link between the rights transfer and technology transfer from licensing-driven open innovation. To accomplish this, managers must be well-versed in aligning the technical, legal and business value from patents to their own product portfolios. Source
Importance of patent intelligence to licensing as related to open innovation
Patent out-licensing is a key source of value extraction for all types of technology, service and product companies. Patent in-licensing is a growing approach to “fencing in” or “fencing out” innovation in important strategic areas. Both licensing activities together create the engine of commerce around the growing markets for freely tradeable technologies - intangibles and ideas.
The key to exploiting patent intelligence for open innovation involves correlating data discovered in patents to other market and financial information to enhance the identification, management and leverage of product development, no matter what the source of that development. Specifically, patent intelligence when used effectively creates an “information inbalance” - where more or less certainty within one party can drive deal terms, pricing, speed and ultimately market dominance.
In order to take advantage of the enormous insights available from patent intelligence as applied to open innovation, it is important to equip decision makers with the knowledge of how to extract and articulate the value of such intelligence. More than dialogue is required – demonstration is the key. Typically, the returns from patent licensing can be quantified more than the value of simply collecting intelligence. Therefore, it is important not only to establish metrics but also to develop lines of communication that briefly, succinctly and measurably visualize the link between the rights transfer and technology transfer from licensing-driven open innovation. To accomplish this, managers must be well-versed in aligning the technical, legal and business value from patents to their own product portfolios. Source
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