In a recent article published in BusinessWeek, Thomson Reuters CEO Tom Glocer provides insight into the factors driving the professionalization in the developing world. Among those factors is the patent boom in China. He explains that as the nation’s economy shifts to one focused on innovation, China is creating a legal system with a greater focus on protecting property rights. Read the full article.
Kevin Bonsor, Marketing Manager, IP Solutions Economy, Global IP, Patents Economy, Global IP, Patents, property rights
This may be a great time for companies that are relatively stable to put thought into refilling their pipelines for the future. One of the things they can do is keep tabs on the appearance of distressed intellectual property in areas of interest to them.
What is distressed IP? Companies who may have great product ideas and talented staff may be having difficulty raising capital, and may use their IP as collateral to secure funding. In some cases such companies actually may be in bankruptcy with their IP in receivership. Distressed IP has been with us a long time, but will surely be on the increase in the current economy.
The value in these financially challenged companies will be squandered if their IP and their inventor know-how is not rescued. The worst kind of patent is a lapsed patent on a great idea, because it serves as a prior art hurdle to the development of that idea down the road. Entities that aggregate such patents are already operating, (variously named as trolls, anti-trolls, NPEs and so on), but there is no reason that manufacturing companies cannot rescue IP and talent in their own special interest areas.
The logical drivers of this opportunity for companies might be new business development or M&A departments. They could use an alerting service or a consulting service to help them identify technology in this category, and then vet the candidates internally for fit with their business development plans. I think it is important to emphasize that not only might they find valuable intellectual property at bargain prices, but they might find talent looking for a home as well. It’s like going to a restaurant and getting a great meal, and then taking the chef home with you too.
I can’t find anything wrong with this idea for a manufacturing entity, and in fact it may mitigate future risk. Is there anyone out there who can see a downside?
Sue Cullen, Ph.D., IP Consulting Director, IP Solutions Economy, Patents Economy, patent