IP Monetization Yearbook from IAMmagazine.

Intellectual Asset Management magazine (http://www.iam-magazine.com/Intelligence/IP-Monetisation-Yearbook/2013) publishes a set of reports each year.  One is the "IP Monetization Yearbook."  The 2014 issue has 11 articles- one of which is Monetization of Royalties and Revenue Streams.  As the techniques for monetization of the enterprise's asset leader, IP, mature, the ways in which to monetize it should evolve to keep pace.  Here, the subject is the multiple ways in which to monetize royalties and other revenue sources from the IP portfolio.

As with most things, there are risks as well as benefits.  This makes due diligence and risk assessment mandatory.  A sample of the risk factors:
-  Revenue stream sensitivity to changes in consumer preferences
-  Technological, product or market obsolescence
-  Infringement risks
-  Risk of invalid IP

These factors potentially impact royalty interest purchases, IP securitization, multiple licenses, etc.

The article summarizes the basic structure of the licensing techniques, the pros and cons, the advantages and disadvantages.  What the article does not explore are the internal demands on the enterprise to develop the business strategies and revenue potentials against other internal revenue sources. (Product Management)  These licensing techniques  have much in common with a financial line of business requiring sophisticated financial plans.  This is not your IP Father's Patent Licensing Agreement from decades ago.

Already, IP Law and corporate finance are seated at the table.  Business Development and Strategic Planning need to join along with IP business managers.  And, once the royalty agreements are implemented, someone will have to manage the royalty collection and certification processes.

What organization in the enterprise owns these license agreements?

Building a Business Plan: The basic components video, and IP too.

Building a Business Plan: The basic components - YouTube: "

Here's the basics about a business plan by yours truly, Dr. Elmer Hall, President of

Strategic Business Planning Company. We help develop the plans that every business needs(tm).

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A business plan helps to plan out the future of the business and estimate its profitability. Also, as the company grows quickly it may outgrow itself. That is, you can fund the growth with profits, but if you exceed that rate then outside funding will be needed. Look at the sustainable growth rate model in finance.

This is the basics of a business plan, but we modify a basic business plan to accommodate Intellectual Property protection (read, sustainable competitive advantage). As you watch Shark Tank to see how venture capitalist think, you will see how seriously important intellectual property is to the success of a business -- and the likelihood of a shark investor taking a BIG bite of the action.

A business plan would likely include these component, as shown in the video, and then have some modification to show the (potential) strength of the IP. We call this IP-centric plan a Patent Business Plan., or for larger companies an IPplan.

Look at the Patent Primer to get an idea of the various aspects of IP and how to build a strong patent competitive advantage.

• Patent Guide 2.0 & Patent Primer 2.0: http://www.lulu.com/spotlight/SBPlan
• (Primer 2.0 Kindle eBook: www.tinyurl.com/IPPrimer2e) 

As it pertains to environmental sustainability -- triple bottom-line planning -- look at discussions over at www.SustainZine.com. The plan here would be a specialized business plan we call a Sustainability Plan. This would be a business plan that also maps out moving to full zero foot print over time: say 5, 10, 20 years, depending on the business/industry.

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These Aren’t The Patent Trolls You’re Looking For | TechCrunch

These Aren’t The Patent Trolls You’re Looking For | TechCrunch:

Wow this is a great analysis/discussion of Patent Trolls.

This is a great discussion of the companies that exercise their IP rights and ways in which they do so. IBM invents a lot (patents) but doesn't directly utilize most of their inventions directly. Plus, even if they do, they often have peripheral uses of the technology where licensing out is a great way to commercialize.

As we often tell clients, you can license key technologies -- especially exclusive licensing for your product -- to control the market.  You don't actually have to invent it.

Kravets does not necessarily propose mechanisms to address "ethical" commercialization from the "unethical" patent trolls.

Maybe that is his next article?

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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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