9/30/07

LegalForce IP Marketplace

LegalForce IP Marketplace IP marketplace is changing with more and more awareness about IP assets. With major portion of world assets in the form intangible form (IP, goodwill etc) both Govts. (for GDP calculations, Taxation), corporations (company valuations, book value vs market value) and stock market is increasing aware of these assets:

- Corporations are giving more and more attention and resources previously afforded only to tangible assets: %age increase in Patent filing, % increase in llitigation in US and worldwide.
- Acquiring and disposing IP assets (buying and selling) is becoming easier and safer: with online valuation and marketplace concepts this has greatly reduced the time and risk associated with IP transactions. Earlier it use to take 3yrs for an IP transaction to take place thus eroding 15% of the value of the IP but with information and financial tools for buyers and sellers this can be done in a more rational way. + Global transactions can take place and corporations/individuals can trade geographical rights.

e.g. An American drug company was a able to add a new drug to its product pipeline in less than 6weeks of finding a small lab in Italy.

thats the same kind of revolution thats taking place when that took place for commodities market in late 19th century with setting up of Chicago broad of trade.

Check the increase in transactions after NYSE setup of CME.

Why don't we apply the same prudent approach that we apply to our tangible assets to our IP assets:
- Sell that generates returns below cost of capital
- Maximize the returns by focusing resources that yield maximum return

so, sell or license what you are not using and buy something that will add value.


Cost of maintaining IP assets world wide for licensing = 20K per asset for 20yrs


Black-scholes equation/Real options Theory made pricing more predictable and made transactions grow.

Valuing Patents has recently been made possible because of the data stream translations of the technology Risk-reward unit (TRRU( valuation model.

Check Intangible Asset Market (IAM)!

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