ARM Holdings is giving up their "holding" to Sprint/SoftBank

ARM Holdings, the maker of chips and chip making technology has week a favorite here at IPZine. They are basically an IP company holding lots of patents on lots of stuff. They specialize in energy-efficient, reduced instruction set (RISC) chip technology; build it and then license it out to chip makers.
They have really taken off into the work of the Internet of Things.
Today SoftBank (parent of Sprint) has offered to by ARMH in an all cash bid. The stock is up 50% today. Even at this elevated price, the price-to-earnings ratio is 70!. Compare that to Intel (INTC) with a paltry PE of 15. Profit margin of 35% vs 20% for INTC.
ARM has remained independent and resisted the various take-over pressures. Until now. This changes somewhat the ARM dynamic of licensing tech to multiple players and making lots of money from licensing revenues (nearly pure profit). ARM has focused on tools and R&D and left the heavy work of manufacturing, distribution, etc. to their clients.
This is probably a good time to start getting out of the stock; SoftBand (Sprint) is not nearly the same type of investment. Sprint is more of a utility play, not R&D.
The drop in British Pound has made ARMH a far better deal to acquire. (ARMH is UK based.)
On a separate note, SoftBank's interests in buying up chip makers might become more complicated with ARM Holdings, in the company's holdings.
In the end, the independence of ARM Holdings didn't hold.

Patent law changes alter entrepreneurs' planning

Patent law changes alter entrepreneurs' planning:

This is a nice article by Laura Baverman about patents and how they needed to be integrated into the business plan and entrepreneurs' strategy. Since the US is now first-to-file, inventors must get their foot in the proverbial patent door early, often with a provisional patent while the details are being worked out.

This article also slips in the key provisions related to the laws and fees that were enacted in March of 2013.

Although the fees have all been dramatically increased, especially the follow-on maintenance fees, there is actually a micro-entity option that is only 25% of the full fee structure for large entities. (To qualify as micro, you must not have a high income and not have too many patents in your name.)

There are a few things that are are perfectly touched on in such a short article. There's a quick look at the staging process to protect the invention without bankrupting the small inventor. There's a side story about the great use of a business incubator for a specific company, EnerLeap, the next-best Lithium battery.

There's the indication of how IP must be specifically budgeted into the business plan. Your business plan must have the budget for IP, it must have the timing for IP expenses (patent, TM, Lawyer, R&D, engineering, etc.), and it must accommodate contingencies for litigation.

Of course, you still want to include the high margins and royalties from licensing in your income stream, you simply need to demonstrate that you have a sound plan for getting to that point.

Great article Laura!

Check out the Patent Primer 2.0, part of the Perpetual Innovation(tm) series, by Hall and Hinkelman (2013) at: http://www.lulu.com/spotlight/SBPlan   ... or ... Kindle eBook at: www.TinyURL.com/IPPrimer2

Visit SBP's IP web site at: www.IPplan.com 

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The Rise of the Intangible Economy: U.S. GDP Counts R&D, Artistic Creation - Businessweek

The Rise of the Intangible Economy: U.S. GDP Counts R&D, Artistic Creation - Businessweek:

WOW. GDP is going to be re-calibrated to include Intangible assets. They hadn't been included because, well, they were kinda hard to measure. ? Huh ?

So expenses on a bridge or a factory becomes part of GDP and part of the "capital" of a working economy, but investment in R&D is simply an expense, with no intrinsic value for the future of the economy and economic development.

It is about time that Intangible assets finally get some respect.! Intellectual Property has been the Rodney Dangerfield of assets. Yet they are far more important than anyone in business schools will admit. And more critical than most companies realize (except media like Disney and Big Pharma).

It looks like the book Perpetual Innovation: A(tm): Guide to Strategic Planning, Patent Commercialization, and Enduring Competitive Advantage, Version 2.0. is simply ahead of its time.

Reference

Hall, E. B. & Hinkelman, R. M. (2013). Perpetual Innovation™: A guide to strategic planning, patent commercialization and enduring competitive advantage, Version 2.0. Morrisville, NC: LuLu Press. (Available at the LuLu Press Store for SBP at: http://www.lulu.com/spotlight/SBPlan.)

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June 28, 1846: Parisian Inventor Patents Saxophone | This Day In Tech | Wired.com

June 28, 1846: Parisian Inventor Patents Saxophone | This Day In Tech | Wired.com:

Wired. This day in Tech.
It was a great day, June 28, 1846 with a great sound: the Sax.

Even then, coming up with a great idea was no guarantee that you'd make money at it.

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IP Creates Jobs for America | BIOtechNow

IP Creates Jobs for America | BIOtechNow: "In May, the Global Intellectual Property Center (GIPC) was proud to unveil the results of our state intellectual property (IP) jobs research, which has been a year in the making. The study, IP Creates Jobs for America, provides real, tangible evidence that the economic benefits of IP are broad and far-reaching."

Go here for the original GIPC report and the interactive US Map.

Key points related to IP Job creation and value generation:

• Jobs created: 914k
• Output: $75B
• Exports: 75.3%
• Avg Wage: $44k

Interesting is the number of IP jobs created in some state. Of course, CA, FL, NY, MA and TX. But the Great Lakes area has a LOT of innovation as well.

This is some really great information for those who are IP proponents! (And those who question the value of IP to have more to think about.)

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Court Refuses to Hear Case From Apple Mac Clone Maker Psystar - John Paczkowski - News - AllThingsD

Court Refuses to Hear Case From Apple Mac Clone Maker Psystar - John Paczkowski - News - AllThingsD:

This is an interesting what the case being presented is.

"Hackintoch" is a good and descriptive term for them. And, somehow they don't see a problem here with ripping off the Mac OS and more.?

It is a good for intellectual property that this company finally fades away.

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USF is ranked #9 in Patents/Innovation.

USF is ranked way up there with the BIG research universities. The only one from Florida in the top 14.
http://news.usf.edu/article/templates/?a=3509&z=158
Pretty cool.