Above is a chasm graph that illustrates the IP strategy lifecycle. The key here is that you want to build an IP portfolio to increase valuation. Your goals are: freedom to operate, block competitors, support future products, hedge against litigation, attract buyers & investors, monetization, liquidation value.
A strong IP portfolio supports the later stages after the chasm. Your sources of IP can come from internal R&D and filing patents, buying patents, or in-licensing (university, government labs, etc.).
As you can see from the graph, before the chasm is labeled as developing IP position. After that, you begin your IP commercialization and monetization. And eventually, portfolio liquidation.
It is important to keep in mind that IP strategy can determine a product's success, market share, and profitability. A failure to properly address IP issues can result in loss of market share, margin erosion, and reduced market competitiveness.
Hi Mike,
ReplyDeleteNice description of the timeline and strategy for IP growth. I thought it was concise and to the point which is good, but maybe next time, you could evaluate each part of the strategy more. Maybe provide some more insight into what occurs in each stage and how that can affect the cycle as a whole. Nice post nonetheless.
Why is it that you need to liquidate your portfolio? Theoretically, some types of IP can be kept forever? Or until a company's product no longer matters
ReplyDeleteHey Matt,
DeleteAt a certain point, the money generated by keeping the portfolio will have a lower value than if the company simply sold the portfolio.
Hi Michael,
ReplyDeleteI think you should elaborate on the graph more. You only repeat the text that is on the graph and you could improve by explaining the steps in more detail.
The image helped me better visualize what you're talking about!
ReplyDeleteHi Michael! This is a great description of the IP lifecycle! I really like how you highlighted the importance of monetization. At the end of the day, no matter how great an idea may seem, it is worthless if it is not effectively monetized. A strong monetization business model serves as the foundation for a successful IP. If executed correctly, this can be the difference between an average IP and an IP that defines an industry. Great post! Keep up the good work!
ReplyDelete