One of the most common questions that are being asked in the arena of Patenting is, if, there exists a way to monetize patents in today’s patent-unfriendly market? The answer is ‘Yes’. However, we need to understand the fact is that it is a dynamic, time-consuming and skills oriented mechanism that has to be executed in a prudent manner. Failing to attain such a mechanism could put you in a hostile environment.
With this article, we came up with some common steps that can help small and medium-sized companies formulate a smart patent monetization strategy that can transform their IPs into revenue generating powerhouse. The whole process of patent monetization technique starts with identifying core and non-core patents. patent monetization strategy
Identifying non-core patents- The whole process of patent monetization starts with the careful evaluation of the patent portfolio of a company. It is done to identify non-core patents from the core patents so that they can be utilized for generating revenue. This is one of those steps that involve categorizing the overall patent portfolio in order to understand what the company owns and where those assets fit within the longer-term business plans. patent monetization strategy
While this can be done internally it could be overwhelming for companies having a huge patent portfolio. In such a situation the best way would be to outsource patent monetization services to a company that is expert in handling such complex projects.
Identifying potential infringing products– This is the second-most important step in the overall process of patent monetization wherein we identify those patents that have clear and provable infringement potential. The basic parameter for identifying provable infringement potential is “current and near-term market”. Here, we consider patents that are in the current and near-term market.
Preparing for the assertion of infringement- This is the third step in the overall process of patent monetization process wherein we search the market to identify various competitors, then, we find products and services that are similar to those disclosed in the patents and then creating claim charts to support assertion of infringement. patent monetization strategy
Estimating revenue based on a reasonable royalty rate range– Theoretically, this could be the last step in the overall process of patent monetization wherein we estimate revenue that can be charged from the infringing party. patent monetization strategy
All we can say is that Smart Patent Monetization Strategies for Small and Medium-Sized Enterprises could reap great benefits in long run provided it is envisioned, executed, and implemented prudently.