IP P®OSPE©TIVE

The discussion of how best to create a liquid and transparent market for intellectual property rights never gets old, and every step taken to offer new and complete information to further that discussion is a step in the right direction. The discussion has morphed from ideas to talking points to individual and collaborative research and publications (See Mark Lemley of Stanford Law and Nathan Myhrvold of Intellectual Ventures' article "How to Make a Patent Market") . . . and now to the ... Read More

(A few words from a macro - and very general - point of perspective) Financing can come in all shapes and sizes. Generally, a start-up will (hopefully) have a great idea and leaders with a vision. However, many start-ups may be doing so without any assets - just a business plan. It may be hard to obtain financing - whether private equity or commercial loan or otherwise - with just an idea. Some start-ups, however, will be fortunate enough to have one (or ... Read More

In 2001, I saw Lebron James play in high school, and I remember telling myself, "that is the next Michael Jordan."  Of course, I meant this from a basketball standpoint, but you can't refer to Michael Jordan without refering to his brand.  MJ's brand is one of the most prolific in sports, and its longevity continues to impress.  It turned out that Lebron lived up to my basketball potential billing.  The brand of Lebron James has not disappointed either.   He recently partnered with McDonald's, ... Read More

For publicly traded IP-rich companies, the correlation between the strength of an IP management and protection plan and stock price is obvious. The track record of the OT 300 pitted against the S&P 500 between 2006 and November 2008 shows this clearly.  The OT 300 outperformed the S&P 500 by just over 460 basis points.  We keep talking about the absence of IP value from corporate balance sheets.  It just may be this absence, in fact, that tends to push such IP-rich companies' stocks ... Read More

Could this be a resurgence of IP securitization?   Financial Times has reported a large IP securitization deal worth $250M executed by Morgan Stanley with Vertex Pharmaceuticals.  Investors' return will be based on milestone royalty payments received from sales of a drug that hasn't even been approved yet.   Before the recession, securitizing intangibles was becoming somewhat popular.  Many are aware of the Dunkin Donuts deal that hit headlines everywhere.  Still, these deals, along with most other deals, have dried up.  The Vertex deal shows ... Read More

I have discovered a very interesting post from a couple of weeks ago on the 12:01 Tuesday Blog, written by Chicago IP attorney Aaron Feigelson.   The post is titled "Patenting the Business of Patents", and discusses tangible evidence of the burgeoning IP marketplace by way of 14 U.S. patents (11 of which have been issued in the past 2 years) covering the method and business of valuing IP.  Feigelson lists all 14 of the patents, which I will recreate the list here: 7,493,262 Method for ... Read More

The newest Intellectual Asset Management Magazine (IAM) revisits what is probably the most important, and most troubling, issue pervading the IP market today: Intellectual property valuation.  I have visited the topic in a number of posts, and this trend probably won't stop anytime soon. The IAM article is another step in the right direction, authored by Pat Sullivan, who has taken the reigns on the conversation of standard setting in IP valuation.  While I encourage everyone to find this issue of IAM, if not every issue, I understand it ... Read More

As individuals and small businesses look to secure funding during a credit freeze, finance innovation has led to a jump in IP-based funding.  In 1997, David Bowie opened eyes when he issued asset-backed bonds on the basis of future royalties, raising over $55 million.  This year, Annie Leibovitz, the famed photographer for Rolling Stone and Vanity Fair, secured $16 million in loans by pledging her life's work of copyrights.  The practice is not exclusively available for stars, however, as companies are turning ... Read More

A few months ago a post on Joff Wild's IAM blog sparked a great debate about the valuation of IP, the difference in valuation contexts, and the viability of a practical approach.  Jumping into the discussion late, Michael Martin of Broken Symmetry posted a "final word" comment on Wild's post and on Broken Symmetry.  A few of his words moved me to revisit the IP valuation discussion on IP Prospective with a few of the standard-setting initiatives that have commenced, old and new.  One of ... Read More

While many companies have chosen to cut costs and ride the recession wave, some savvy companies are taking this time to discover new value in their company; value in the intangibles.  Although some executives equate "cost-effeciency" with cutting employees and holiday parties, others are finding undiscovered or underutilized intellectual property and turning it into a new profit center.   While IP value generally isn't included on a balance sheet, its distinctive worth to a company shines at a time when standard revenue streams demonstrate ... Read More