aistemos - ip value and risk
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IP Value and RiskImperial College Business School
Nigel Swycher, CEO, AISTEMOS Limited29 April 2014
Background and context• AISTEMOS was established in October
2013 to focus on IP Strategy, data analytics and risk management
• We are developing the first IP data analytics product targeted at corporates, banks, lawyers, accountants, etc. (i.e. those who have no specialist IP knowledge)
The Pilot Group includes more than 25 organisations (http://aistemos.com/cipher-pilot-group.html) and the prototype was launched in February 2014 (http://bit.ly/1gRUIjL)
• AISTEMOS has a close association with the UK’s most experienced IP strategists, including Donal O’Connell, John Pryor, Rob Carter and Marcus Malek
• AISTEMOS’ passion is the continued evolution of IP as an asset class and to encourage the further participation of the financial services sector and insurance markets
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IP Value and Risk
• What matters are all things that will increase the VALUE and decrease the RISK associated with IP rights
• Remember at all times that RISK and VALUE are relative and not absolute measures. The Target (T) has less VALUE than a Comparable company (C1) and less RISK than the other Comparable (C2)
• Achieving a particular position on the Grid should be a conscious decision, and there are often trade-offs to be made. There are few who can achieve or sustain high VALUE/low RISK positioning in any aspect of business, and especially in IP
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The drivers for Risk and Value
Portfolio
Litigation
Licensing
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Understanding Risk and Value drivers
PatentsTrade MarksCopyrightConfidential Information
Portfolio
InboundOutbound
Licensing
PursuitDefence
Litigation
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Managing Risk and Value
Governance and
Management
Awareness and
Education
The vast majority of all “war stories” can be tracked to
failings in one or both
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War storiesOops….
• Product launch frozen• No patent available• No exclusivity• Unwanted competition• Publication of proprietary
software
If only….
• a trade mark search had been undertaken• the filing had been made before the
conference• the supplier had assigned the IPR to us • our confidential information was properly
identified or protected• we had implemented an Open Source policy
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Patent risk and valueIt’s all relative and it’s all about perspective
PlaintiffLicensor
ValueLitigationLicensing
Event
DefendantLicensee
Risk
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CIPHER - IP analyticsBusiness decisions in the field of intellectual property must be informed choices based on all available information:• The size and strength of your portfolio, compared to others• The licensing landscape and current VALUE ranges • The RISK of litigation, from both competitors and non-practising
entities (NPEs)
The starting point is Big Data. The challenge is that not all information is available and not all of it is in one place
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* Refer to Banking on IP, UK IPO report, November2013 http://www.ipo.gov.uk/ipresearch-bankingip.pdf
Evolution of IP
IP is an asset class, but does not perform in the same way as more established assets, such as land, equity or commodities. This means:• Imperfect markets for the buying and selling of IP• Unwillingness of traditional lenders (aka banks) to lend
against IP *• Immature products and services to mitigate IP risk, specifically
IP insurance
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The future is now• There is increased recognition that intangible assets, and IP as an
important part of that, is a significant contributor to enterprise value, particularly in the TMT and biotech/pharma sectors
• The last 5 years has been an intense period of activity in numerous areas such as transactions (Nortel, AOL, Motorola, MIPS), litigation (Apple/Samsung and NPEs, such an Intellectual Ventures, Acacia) and organisations formed specifically to facilitate and mitigate the opportunities and risks (AST, RPX, OIN, Unified Patents and most recently, Patent Properties)
Expect this activity and the rate of development to increase, and for the financial sector to engage. IP is complex and mispriced
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