This is the first in a two-part series.
Innovation has become a critical priority for many companies and, of course, is essential for technology companies. A recent Boston Consulting Group study of more than 1500 executives found that 72 percent of executives ranked innovation as one of their three top priorities, with 26 percent ranking innovation as their top strategic priority.
The best practices in an intellectual property strategy focus on protecting the company’s products and developing the assets that make the company an attractive partner in collaborations. The development and implementation of the appropriate intellectual property strategy can significantly increase the value of a company in the market and particularly upon an exit. For example, the market value of Oracle increased by 4 percent within the week after the announcement of the $1.3 billion award in its litigation with SAP. The value of patent portfolios alone (without a business) has been recently demonstrated in prices paid patent portfolios: Novell (800 patents for $450 million) and Nortel (6,000 patents for $4.5 billion).
Many books have been written about innovation and intellectual property strategy, and the next article in this series will summarize the major issues in developing and implementing an intellectual property strategy. One of the best books we have read on this topic, Edison in the Boardroom, is being updated and the new version will be available this month.