Is Patent Monetization In Your 2021 Strategic Plans
by: Tom Hochstatter, President
What’s holding you or your company back from really taking a hard look at your patent portfolio for more monetization opportunities? Is it politics, legal headwinds, lack of personnel or resources, lack of understanding, basic ambivalence, or lack of tools that has your portfolio aging on the shelf? It could be a little bit of all of these.
When I help clients dig into these problems (aka: opportunities) I am reminded of one client I worked with a dozen years ago that had 17 gating approvals to get a single patent or family to the “front door” of the corporate just to make it available for sale or license. Wow! I thought it arduous, but surmountable. Then. The client informed me that those same 17 gating approvals also had to approve the transactions if you we were ever so lucky to get the patents out AND find a prospective buyer or licensee.
Reminds me (yes, I’m this old) of the 1977 movie “The Gauntlet” with Clint Eastwood and Sondra Locke. The patents would end up looking like that bus on City Hall’s steps at the end of the movie - before they even got to their first prospective buyer. What would be the point?
Further, who in their right mind would want to travel that path to see a patent actual get transacted? If you have an interest in a career at your company, you wouldn’t take the first step. I wouldn’t either for that matter.
So, firstly, I hope your firm doesn’t have 17 gating approvals to transact a patent. Secondly, if the path isn’t well lit, well-worn at your company then you may suffer a similar, if not as drastic a fate as that bus…get help. It is well documented that 85%+ of the value of firms is tied up in intangible assets. I certainly know that and my team at Techson knows that too. What we also know is how to articulate to your decision makers how best to extract that value in a safe, meaningful manner that keep the politics at bay, the “bullet count” low, and increases the odds and value in your transactions.
The Power of Threes
1) Hire Help - that’s me and my team. Outsiders can have a positive impact, or at least take risks that insiders can’t (or shouldn’t). We will speak from experience and speak truth to the situation as we find it. We can illustrate successful outcomes across industries, portfolio size, geographies and steer you away from the pitfalls.
2) Establish a Plan - “fail to plan, plan to fail”. Heading into Q1 of any calendar or fiscal year is the best time to launch these types of efforts. Folks are mentally ready for new ideas, new beginnings, and they are more risk tolerant. But, we can’t just pose an idea, we need to have a well thought out plan that is realistic, has measurable outcomes, establishes responsibilities, and success. Then it is simply working the plan.
3) Educate Along the Way - people want to back winning projects. This is the single biggest misgiving I have encountered when endeavoring upon the monetization path in large corporations. My clients and internal champions (usually falsely) assume most everyone they encounter will be as passionate or informed as they are about the virtues of patent monetization. Too many times I have witnessed the exact opposite; thus, take for granted we will need to make education a major part of the plan. Surprisingly, this can be the most fun. No, really.
Ok, so we have your interest, we have the calendar on our side (for the moment), and we have a plan. The good news is you also have major momentum in your favor. Patent monetization is no longer an esoteric or abstract concept. It’s real; money is pouring into the sector from all sides; patent transaction volume is on the rise; law firms are getting savvy to monetization. Let’s do this.
Hey, 2021 could use a few new heroes. Why not be one in your company or law firm - like Clint Eastwood and Sondra Locke. They ultimately got the mob - you can too.
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