Tuesday, September 29, 2009

Patent Monetization: Why even bother?


That IP in general and patents in specific occupy a significant importance is much talked about. How much is generally a question that is avoided. The figure above, based on Ocean Tomo's research, shows that Intangible Assets comprised about 75% of the market capitalization of S&P 500 companies. About 22.5% of the total market cap has been attributed to patents which is about 1/3 of all value attributable to Intangible Assets.

In an economy where about 1/5th of the valuation that most companies, especially those in 'knowledge' based industries, derive is due to patents - their monetization is not just a matter of choice anymore. It is a matter of shareholder responsibility.

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