“In real life, strategy is actually very straightforward. You pick a general direction and implement like hell.”
― Jack Welch Former CEO of General Electric
Myths abound regarding IP strategy, even amongst intellectual property professionals. It can be tempting for busy leaders to rely on folklore rather than truly digging into concepts to see their value, and as a result these myths can cloud an organisation’s appreciation of the need for an IP strategy (and the commercial value an IP strategy can deliver).
Three of the more common IP myths are discussed below.
An IP strategy only considers intellectual property
Intellectual property rights cannot be considered in isolation to an organisation. While intangible assets and intellectual property rights can be the most valuable part of a business, their creation is not the goal. Although important, the creation and use of intellectual property is only one of a number of building blocks in corporate strategy. An effective IP strategy considers the direction and the goals of an organisation, and then works out how the commercial potential of intellectual property assets fits within the overarching strategy to reach those goals.
A good IP strategist will first explore the opportunities and challenges facing an organisation to obtain a true understanding of its needs. The strategist’s enquiry process often stimulates ideas amongst the leadership team, and consequently is itself of significant value.
Once the IP strategist has a comprehensive understanding of the organisation, the process of crafting an IP strategy can begin. IP strategies typically focus on how IP might enable a business to create value and support an organisation’s commercial strategy, but the role of IP should also be considered in relation to the following:
- Alternative business models
- Scaling up
- Markets
- Licensing opportunities
- Competitive edge
- Research guidelines
- Business & IP valuation
- Third party relationships
- Exit strategies
IP strategy is expensive
There is no doubt that creating an IP strategy will often identify shortcomings in an organisation’s IP ownership, the control they have over those assets, and missed commercial opportunities that need rectifying.
But it also identifies areas that an organisation can work on. A good IP strategy could help identify lucrative opportunities as well as save money.
For example, when information gathering, IP strategists will identify the stages and timings of an R&D program. Often the program does not complement the timing of a commercial launch and/or the procedural requirements of IP ownership options, such as patents.
When considering patents, a common mistake is for a business to apply for registration of its IP rights too early or too broadly, thereby disclosing its technology before it has gathered research data that supports a stronger patent position. IP strategists can use their knowledge of the patent process to not only guide timing and inform the scope of patent applications filed, but also guide businesses on which R&D areas to focus.
An effective IP strategy will also have regard to competitive intelligence to identify opportunities, mitigate risks and ensure that the IP rights owned by a business are aligned with its markets, as well as the markets of potential collaborators.
Whilst the process of devising an IP strategy might lead to additional upfront costs for ensuring effective IP ownership, it is a wise investment which can help mitigate risks, create valuable assets, and open the door to increased opportunities and expansion.
Any IP professional can provide IP strategies
IP professionals should provide sound and valuable strategic advice when advising their clients. Most IP professionals are highly specialised in the areas of law and technology in which they practice, and will offer in-depth advice consistent with their specialisation.
However, it is less common for a specialist in one field of technology or IP rights to provide an IP strategy which takes a whole of business approach.
For example, a patent attorney specialising in genetics may not instinctively think to assess and question legal agreements relating to the IP – such as the document by which a company acquires key IP rights from the founder of the business.
An IP valuer may not appreciate the scope of the IP rights and their relevance to existing and potential markets, competitors and future developments.
A brand strategist may not consider how patent rights can be backfilled in new markets.
The reality is that while many IP specialists can provide IP strategies which go beyond their main area of expertise, many prefer not to do so. It takes a step change to adopt a helicopter view of an organisation, as opposed to applying specialist skills to narrow issues of the type they address on a regular basis.
The holistic vs. the specialist approach
The beauty of an overarching IP strategy is that it identifies multiple issues, recognises links between them, and then coordinates the experts to provide the specialist assistance needed. This avoids overlapping services, and gives greater context to the experts. It will also lead to businesses better appreciating the relevance of the advice they are receiving.
While IP can be mystifying in and of itself, and the myths about IP that abound don’t help, the process of developing an IP strategy with an expert reveals the relevance of IP to an organisation, and is often of value beyond the project itself.
The specialist approach is appropriate for dealing with specific issues and will always be part of a strategic view understood and appreciated by the IP specialist. The holistic approach however will deliver the best commercial outcomes, and is invaluable for a business navigating through the IP and commercial challenges it faces.
