The ultimate success of brands and businesses in the modern world largely depends on the groundbreaking innovation that sets them apart from the rising competition in the market. Having a robust Intellectual Property (IP) portfolio and strategizing well to maintain it can do wonders in enhancing your brand value and market share. However, keep in mind that using your IP assets to support the current and future market position of your business can prove to be a major challenge.
In this article, we will be making ourselves familiar with the top five IP challenges faced by business firms and organizations, along with efficient ways of resolving them.
- Coming Up With Valuable IP Assets
All IP assets don’t generate value. According to various studies and reports, 80% of the patents issued stay unutilized. A valuable and strong IP portfolio holds immense power for securing a firm’s already existing product lines and services while aiming to gain a strategic advantage over other competitors in the market. Therefore, to have a strong IP portfolio, an innovative and enthusiastic R&D team needs to be set up adequately and fed with IP landscape insights and whitespaces in their field. Furthermore, there should be an innovation-management process for providing feedback to the researchers and innovators concerning the prospective value and feasibility of their ideas.
- Managing the IP Portfolio Well
When we talk about managing an IP portfolio, it is not restricted to only paying the maintenance or renewal fee for the registered IP at the end of their respective protection periods. It also focuses on the efficient utilization of the IP portfolio to fulfill the broader business objectives and goals. Every other IP portfolio should be organized and managed in a way that helps in making the right decisions at the right point in time. Let us consider the example of patents in an IP portfolio to have a better understanding. Ideally, a Patent Protection strategy within an IP portfolio should enable the business firms and corporations to identify the following:
- Patents that may safeguard their present and future product line;
- Patents that may prove to be beneficial in keeping the present and future competition at bay;
- Patents that can be used significantly in licensing mechanisms and deals to generate revenue; and
- Patents that become outdated with time and need not be maintained or renewed to save on the corresponding costs involved.
A well-defined patent protection management plan such as the F3 Analysis can help identify the previously mentioned points. The F3 analysis model helps business companies categorize their patents into three major categories, including fundamental patents, future patents, and fringe patents. Fundamental patents apply to the present product line of a company. Future patients may not have a current application but can be valuable in the upcoming products; for instance, any open or pending Patent Application can be prosecuted strategically to make it a fundamental patent somewhere in the future. Fringe patents are usually irrelevant to a company’s product line and could, therefore, be licensed, pruned, or abandoned. Such an analysis helps a company protect its offerings from copycats and violators in the market. Additionally, it safeguards a business company during litigation or threat from a competitor in the industry.
- Combating the Competition
In every other industry, competitors keep searching for evolving IP assets. Sometimes, it even leads to the replication of innovative technologies and inventions. Consequently, many market leaders and business owners often end up in legal court battles. Without any doubt, winning such court battles can provide a competitive edge; however, losing them can harm the brand image and goodwill. Furthermore, the coming of new entrants into the market adversely affects the market share of the already existing innovators and inventors.
With a robust IP portfolio in place, you can gain a competitive edge over your competitors by safeguarding your product line and services. It also helps you in having the upper hand in infringement lawsuits. Moreover, it may allow you to consider cross-licensing to end IP conflicts favorably with your competitors.
- Facing IP Lawsuits
IP lawsuits coming from Non-Practicing Entities (NPEs) and your competitors in the industry can cause an enormous financial loss to your firm, in addition to putting your brand image and consumer goodwill at stake. When we talk about patent-related lawsuits, you can prevent them from arising with Freedom to Operate (FTO) assessments. An FTO analyzes the patents that can pose a significant threat to your product launch. Modifying your product to overcome infringement or prior invalidity analysis and having licensing negotiations in place for such threatening patents can help you save an enormous cost while maintaining your brand reputation. Besides, to avoid legal matters arising from your supply chain, you should enter into well-defined contracts having proper IP-indemnification clauses with the suppliers.
- Valuable Contribution of IP Departments
It often becomes arduous to explain the valuable role and contribution of the members of an IP department. One can’t deny the fact that intangible assets usually contribute more towards the growth and success of an organization. However, many corporations fail miserably in realizing the same and end up targeting their IP assets during budget cuts.
Due to the COVID-19 pandemic, there have been nationwide lockdowns induced. Many businesses have shut down, which made their tangible assets ineffective. Intangible assets like IP have helped many companies remain afloat during such trying times. Members of the IP departments ensured that the licensing deals kept generating good revenue when the primary product lines or services were comparatively inactive. Additionally, the contribution of IP assets to a business firm needs to be carefully examined by its IP department. It needs to abandon all the unprofitable IP assets that can be an immediate cost-saving measure. Identifying the IP assets that can bring major profits can also help the IP departments generate a tangible value for the business organization or firm. ✅ For more visit: https://www.kashishipr.com/
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