Actively Manage Patents for Better ROI

Strong intellectual property and wise management of it are a prerequisite for success in today's knowledge-based economy. With more than 80% of most companies' net value consisting of intangible assets, of which patents are the most notable, careful attention to developing and nurturing these valuable assets is critical. While much has been written about the trapped value of intangible assets in the Fortune 500, the same if not greater entrapment occurs in small and medium sized companies because many SMEs lack the resources to properly exploit IP. Indeed, patents are not just the domain of large companies. Small companies typically generate significantly more patents per employee than large businesses and represent 20%-30% of all active high technology U.S. patents.

To be successful, it is imperative that small companies and individual inventors maximize return on their investment dollars. Unfortunately, lack of time, lack of resources, and a too-narrow focus on product development contribute to a suboptimal return. Broadening the focus to include leveraging intellectual property assets as a supplement to revenues derived from successful products can make the difference between just hanging on and vibrant success. By placing IP on equal footing with product development, new opportunities can be identified to accelerate growth.