Patent Monetization: Best Practices
Patent monetization is important when it comes to defining the value of an invention. If your inventions and ideas are not generating revenue then it is just a waste of time and resources. To address such issues it is important to come up with a comprehensive, achievable, and realistic patent monetization plan right at the beginning.
This article is aimed at describing some best practices those we can incorporate and inculcate while formulating a comprehensive patent monetization plan for clients.
Step No 1- Setting Goals:
The first and foremost important step in patent monetization campaign are to set goals. Formulating a patent monetization campaign is a dynamic and iterative process that starts with broad goals and then drilling down to more specific ones.
Broad goals may include:
- Arranging and recovering investment in R&D to support strategic advantage
- Generating revenue (either by selling, licensing or enforcing)
- Securing a competitive advantage by hindering a competitor
- Building recognition as a leader in innovation
However, goals may vary depending upon the need of the clients and there is a plenty of room for us to mold ourselves as per the goals of the clients.
Step No 2-Identifying Patents to Monetize:
For organizations and companies having large patent portfolio, it is overwhelming to select patents needed to be sold since they are overburdened with their core business work. In such a situation patent monetization service provider can be of immense use as they are pretty acquainted with selection criteria.
This is one of the most important steps in overall patent monetization process as it helps us identify which technologies in a patent portfolio are likely to be commercially valuable.
Step No 3-Criteria used in selecting patents to monetize
Every patent monetization service provider may have different criteria to meet their specific goals, still, there are some common criteria on the basis of which we can determine which patent should be monetized. Below are some criteria that a business can use:
- How valuable is the patent?
- How strong are the claims of the concerned patents?
- Is someone infringing the patent?
- Does the concerned patent cover the client’s core or non-core technology?
- Establishing market-based pricing mechanisms for IP
Step No 4-Formulating strategies for monetizing patents
Basically, there are mainly five different techniques that any IP Monetization Company offers to their clients, below are those:
- Direct Licensing
- Indirect Licensing
All we can say is that clients have more than one goal and that there are different methods available to accomplish these goals. An effective and comprehensive patent monetization technique involves sourcing technical skills, business skills, and legal skills from various verticals of a business. A professional patent monetization company should be equipped with all such skills.