Apr 9, 2009
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
Mar 18, 2009
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
Feb 13, 2009
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
Jan 26, 2009
The success of "patent trolls" has been the root of a new anti-patent troll model implemented to defeat the patent troll movement and instill value in precious IP. RPX, a San Francisco-based start-up, is a "defensive IP aggregator". It is a firm that buys up free-market patents in an effort to safeguard tech companies from expensive patent lawsuits. The firm sells memberships to companies based on the company's operating income, and then turns around and buys patents on the market that relate, ... Read More
Jan 25, 2009
I might be stretching it a bit to call it a stock market (this early), but developments are on the horizon to push IP in that direction.
The success of public auction events such as the Ocean Tomo auctions has sparked a new concept that will continue the trend toward liquidity of IP value. The Intellectual Property Exchange International (IPXI), of which Ocean Tomo is the founder and majority owner, is "the world's first financial exchange with an intellectual property focus." With its ... Read More
Jan 24, 2009
A somewhat recent phenomenon in the patent arena is the creation of "patent pools", where a number of dynamic companies with different agendas throw their patents onto a single licensing platform making their patents available under common terms. In effect, a company's IP is available to pool members, but barriers to enter the market are effectively erected, causing more prospective competitors to license from the patent pool. Therefore, even when a company's specific patent is not needed, it reaps the benefit. These ... Read More
Jan 23, 2009
This is the "have your cake and eat it too" scheme.
Companies often believe that core intellectual property only holds value in the competitive advantage it creates through its operational use. Although this may be true in some cases, a core IP sale and license-back model may be advantageous in other situations. If a company's IP is critical to its operations, but it needs cash to operate, it may sell its IP to another company in a transaction that allows the selling company ... Read More
Jan 22, 2009
(The following will be the first installment of a series called "Monetizing IP" that IP Prospective plans to run daily over the next week. The topics will cover conventional models such as sale, license-back, and outbound licensing, and then will move to new models, such as patent pools, IP auctions, IP stock markets/investing, and defensive IP aggregators.)
It is no secret that we live in an information society, but consider the following: according to the U.S. Patent and Trademark Office, intellectual property in ... Read More
Jan 12, 2009
IP Prospective will be a source of information and a medium for intellectual exchange at the intersect of intellectual property, law, investment, money, and corporate action.
It is my hope that this online magazine will serve as a center of information and ideas for those with a keen interest in the future relationship of intellectual property and business. Indeed, while some may measure the success of this weblog by the quantity of readers it accrues, it is the quality of readers that will make the success uniquely ... Read More
Trevor M. Blum is a former Associate in the Chicago-based, valuation practice group of Ocean Tomo, LLC., an intellectual property (IP) consultancy. Additionally, he provided instrumental research support to Intellectual Property Exchange International, Inc., an IP exchange start-up. Trevor holds a B.S. from Indiana University and is currently an MBA candidate at the University of Cambridge, focusing on international business and finance. His interests also include entrepreneurship, economics, and informational visualization. He enjoys running and cycling in his free time. Trevor seeks to bring a transnational business perspective to the blog. 