Intellectual Property Portfolio Management: Maximizing Profitability with Patent Pruning
In a company’s intellectual property portfolio, there can be a wide range of patents, copyrights and trademarks. However, most of these IP assets do not match the business plan and market demands, costing the owner thousands of dollars in the form of maintenance fee, legal fees, etc. In addition, the most promising assets in the portfolio go unnoticed. Patent pruning is a special technique to identify and monetize assets that perfectly match current and projected business objectives and future market trends, and to ditch idle assets.
Why Prune Patents?
Patent pruning can help companies manage their intellectual property portfolio efficiently and stay competitive in their respective markets. Some of its main benefits are listed below:
- Costs reduction: Why pay for patents, which will not even cover the investment costs? Instead, the money can be used to protect and monetize IP assets, which are highly tradable. Patent pruning helps identify and exit non-performing assets from the portfolio, thus minimizing the costs of maintaining intellectual property.
- Prosecution strategy: During the prosecution phase, claims must be edited taking into account not only the IP office’s guidelines, but also future market prospects and the company’s product line. Patent pruning (adjustment) helps make strategic changes to claims so they align properly with business goals and market trends.
- Monetization strategies for the most promising assets: In an IP portfolio, the percentage of assets that align perfectly with the business plan and future market trends is very low. But, they can help earn a significant amount of money if monetized effectively. Patent monetization strategies are exclusive, non-exclusive, and claim-based licenses, etc.
Today, most companies are spending millions of dollars to maintain their intellectual property portfolios. They don’t even try to figure out if the assets they’re paying for are worth their business or not. With the help of patent pruning, entrepreneurs, IP attorneys, and decision makers can identify the most promising assets in portfolios and turn them into profitable ventures.
Patent pruning is not as easy as it seems, and companies need to be very careful when adding IP assets to the drop-off list. It is recommended that you consult with all departments, including legal, business, marketing, and R&D, and identify technologies that will be phased out. Also, consultation with IP professionals can help you choose which patents to focus on the most, which makes a big difference.