Firms Seek Talent with Expertise in Managing IP Assets
The slowing economy has pushed more companies to become rigorous in protecting their ideas and find ways to expand and generate income. As a result, a growing number of corporations are focusing on the strength of their patent portfolio. According to PricewaterhouseCoopers (PwC), just 30 years ago most company valuation was determined by capital assets, such as plants and equipment. Today, PwC estimates that intangibles, such as knowledge, probably account for more than 50% of the market value for the average listed company worldwide. The firm goes as far as to say that IP has become the most critical component of value creation for companies around the world.
Despite the growing significance of innovation, R&D, patents, copyrights, trade secrets and IP, a recent PwC study concludes that technology execs believe they are not yet as competent as they should be in the management of IP. Now, as more businesses leverage IP to generate revenue and remain competitive, executive search firm, A.E. Feldman, reports that corporations are expanding IP asset management teams and introducing significantly higher levels of sophistication to their IP asset management. As a result, demand for IP licensing talent is surging. The need for legal assistance is also creating opportunities for attorneys, who are increasingly responding to IP issues. A.E. Feldman says legal jobs are also opening up as top tier law firms with booming intellectual property practices are seek patent attorneys.
Leveraging IP
IP is a core strategic asset, according to PwC. Right now, the focus is shifting from litigation to managing and enhancing its value. PwC quotes Horatio Gutierrez, VP and Deputy General Counsel at Microsoft, IP and Licensing Group, as saying, “We are moving toward a global economy where the true strategic asset is IP. We invest over $7 billion a year in R&D, and then we turn that knowledge, that IP, into licensing revenue.”
Traditionally, intellectual property (IP) systems were established to create a barrier from competitors. Today, however, more corporations are using their IP assets as instruments for developing business relationships and accessing new technologies, reports WIPO. In short, IP assets can be leveraged to access markets, generate dependable income and provide a significant boost to a company’s bottom line.
Two key strategic ways to maximize IP assets include licensing and franchising. Licensing is when an owner of an intangible asset, transfers the right to use that asset to another, for a price, while retaining ownership of that asset, according to WIPO. It provides a legal way to protect knowledge and creativity (i.e. patents, trademarks and copyrights) while simultaneously taking advantage of a valuable tradable intangible asset.
In contrast, a franchise is a specialized license where for a fee a franchisee is allowed by the franchisor to use a particular business model and is licensed a bundle of IP and supported by training and technical support.
Firms Seek to Extract More Value from IP Portfolios
PwC’s report finds that technology executives recognize they must maximize the value of their IP portfolios, but technology execs still do not believe their companies are extracting its full value. The report quotes Forrester analyst, Navi Radjou, as saying that U.S. companies waste an estimated $1 trillion each year by failing to extract the full value of their IP through partnerships.
According to PwC, 83% of technology execs say IP management is either very important (52%) or very important (31%) to the success of the company. Looking ahead, as important as IP management is today, PwC finds that 85% of IT execs expect IP management to become even more important over the next three years.
Law Firms Expanding IP Practices
The need for IP legal assistance has exploded in the past decade as more companies rely on ideas, technologies and processes. That has led to a boom in the number of IP attorneys - a field some consider recession-proof.
Brinks Hofer Gilson & Lione, one of the largest intellectual property law firms in the U.S., recently announced the opening of a new office in North Carolina. The firm added two patent attorneys.
“The addition of these two outstanding attorneys and the new office fits our current practice strategy and addresses an increasing demand from our clients,” said Brinks President, Gary M. Ropski.
Meanwhile, Sheppard Mullin Richter & Hampton LLP announced the addition of two attorneys to its intellectual property practice in Costa Mesa.
Rutan & Tucker LLP also issued a statement to highlight the expansion of its Intellectual Property practice.
A.E. Feldman’s legal and technology divisions are constantly researching industry trends and developments. To learn more about these issues or inquire about existing and future job opportunities, the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s expert legal, financial or IT recruiting teams here.
