How can I succeed with IP?
How can intellectual property increase my company’s value?
In an October 22, 2005 article titled, A Market for Ideas, The Economist reported as much as 75% of the value of publicly traded companies in America comes from intangible assets. A large part of those intangible assets are the patents, trademarks, copyrights, trade secrets and licenses owned by those companies. Experts estimate that today closer to 80% or even 85% of the value of top performing US companies is found in their intangible assets.
How much of your company’s value is tied to your intangible assets?
Every company strives to differentiate itself from its competition and to stand out in the marketplace. Innovation is the best way to establish your difference. Companies can innovate through business strategies, new technologies, product and service offerings, brand identity, trademarks, internal processes and even just in the information created for a web site or for customers.
Even if you do not capitalize on or protect the value of your intangible assets, your company has and creates new intellectual property all the time. Extending the valuable life of your intellectual property and strategically creating new intellectual property is the secret to the lasting success and increased value of your company. By understanding the business purposes and strategies behind patents, trademarks, copyrights, trade secrets and licenses, you can better use these tools to extend the valuable life of your intangible assets and increase the value of your company in meaningful ways.
Intellectual Property is necessary for capturing and holding on to market share. Imagine the difference in value between an exclusive contract with a worldwide distributor versus a non-exclusive contract; a 15 year contract versus a 1 year contract; a premium price versus a commodity price. Because patents, trademarks, copyrights and trade secrets can provide your company with exclusive rights, those rights are more valuable and can place you in the best negotiating position to obtain the most favorable contract terms, highest prices and greatest market shares. If you do not own the exclusive rights to the innovation your customers want, your competitors will move in to offer the same innovation at lower prices and take a portion of your market share. If you do not continue to innovate and freshen up your offerings, someone else will innovate and bump you out of your market.
Contact Booth Udall Fuller for information on how you can increase your company’s value through protecting its intangible assets and creating a defensible market for your innovation and identity.