Amid Recession Firms Focus on IP Asset Management Teams
Facing economic uncertainty and a liquidity crunch, corporations are seeking to capitalize on the high value associated with intellectual property (IP). With more patents on the market than ever, companies are on a shopping spree being driven by the recessionary economy, according to Law.com. A recent Reuters report also states that even in a tough market for selling IP, patents can often yield much-needed cash as companies seek to avoid bankruptcy or as creditors attempt to maximize the funds they can recover. The report quotes Stephen Gray, a Managing Partner at restructuring firm CRG Partners, as saying that when it comes to patents, “You never know what they’re going to be worth, or how they’re going to be monetized.”
The slowing economy has pushed more companies to become rigorous in protecting their ideas and find ways to expand and generate revenue. IP assets can be leveraged to access markets, generate dependable revenue and provide a significant boost to a company’s bottom line. As a result, a growing number of corporations are focusing on the strength of their patent portfolio. Now, as more businesses leverage IP to generate revenue and remain competitive, executive search firm, A.E. Feldman, reports that corporations are expanding their IP asset management teams and introducing significantly higher levels of sophistication to their IP asset management process. As a result, demand for IP talent is growing.
Leveraging IP
Intellectual property (IP) refers to creations of the mind: inventions, works of art and literature, symbols, names, images, and designs used in commerce, according to the World Intellectual Property Organization (WIPO). Intellectual property is divided into two categories: industrial property, which includes patents, trademarks and industrial designs as well as copyright, which includes literary and artistic works. PrincewaterhouseCoopers (PwC) argues that IP has become the most critical component of value creation for companies around the world.
The supply of patents on the market has increased as more companies realize that IP is an asset that can be bought and sold, according to Law.com. The report adds that a number of patent attorneys predict the recession will only cause more companies or inventors to put their patents up for sale. Industry experts recruiting for A.E. Feldman add that technology executives are currently seek to maximize the value of their IP portfolios, which have become increasingly significant to a company’s bottom line.
Explosion of Patent Litigation
Meanwhile, the number of patent infringement suits continues to increase, states Law.com. The report argues that a growing number of lawsuits being filed is not only an indication of the high value associated with IP, but also a sign of how buying others’ patents is being used as a weapon in IP litigation. Specifically, big tech companies are buying patents since the best defense against a high-stakes IP suit can often be the ability to threaten the other side with suits based on your own portfolio, states Law.com.
Push for Patent Reform
Amid the wave of patent litigation and the drive towards a more knowledge-based economy comes the push for the biggest changes in patent law in decades. A bipartisan group of lawmakers have reintroduced legislation to overhaul patent litigation, claiming the changes are needed to drive innovation in a recessionary economy.
The Senate Committee on the Judiciary held a hearing on “Patent Reform in the 111th Congress: Legislation and Recent Court Decisions” on March 10th. The Committee Chairman Patrick Leahy (D-Vt.) and Sen. Orrin Hatch (R-Utah), a senior member and former chairman of the Committee, and House Judiciary Committee Chairman John Conyers (D-Mich.) and ranking member Lamar Smith (R-Texas), introduced the Patent Reform Act of 2009.
“The legislation makes needed updates to the system that will improve patent quality and increase certainty among parties in litigation,” according to Sen. Leahy’s website.
Opposition to the bill, however, remains fierce. Critics of the bill, which include small inventors and labor unions, argue it would reduce the likelihood of major damage awards and increase the standard of proof for willful infringement. Opponents of the legislation also contend it would encourage intellectual property theft, discourage innovation and cost the economy even more jobs.
A. E. Feldman is working with well known companies who are leveraging their IP portfolio to generate additional revenue. Are you looking to extract more value from your IP portfolio? If you want to grow your career or discuss your company’s talent needs, contact A.E. Feldman’s President, Mitch Feldman today.
