Recognizing value from the intangible
IP is a foundational business asset that drives the majority of enterprise value today. Compared to tangible business assets, however, generating enterprise value from IP can present a variety of challenges based upon its form of legal protection and intended use. Plus, the vast majority of IP departments lack connectivity with business decision makers. They treat IP as a purely legal exercise, leaving them unable to link IP to how the company drives revenue.
Recognizing IP as an asset opens up a universe of sophisticated portfolio management techniques that allow companies to make better decisions about IP, extract value from IP, minimize risk, and position the IP department as a strategic partner to the firm, not just a cost center. IP departments should ensure existing intangible assets are protected; optimize the IP portfolio to generate the highest return for a targeted level of risk; and align the IP portfolio with current and future business needs.