Enhancing Innovation ROI by Adding Patents at the Front End: Some Resources

A new client has asked for some information on how consideration patents and IP at the front end of the innovation/product development process can enhance business value.  Readers of this blog might find this material informative, also. This is a published article from Innovation Management article entitled “How to Improve Innovation ROI with Early Stage Patent Expertise.”  In this article, I discuss how IP can help orient innovation teams in a direction that can enhance value capture.  Practical steps to implement such a program into innovation processes is included in this article. Here is a YouTube video that explains my process simply.  In short, including IP at the front end of a company’s innovation process allows one to enhance their calibration with respect to the IP rights of others to better ensure that they will achieve the desired ROI on innovation investment. This blog post describes how a large company failed to capture the full value of its deep investment in a new product innovation.  These folks (the name has been changed to protect the not-so-innocent) failed to grasp that their innovation was not a product, but a customer solution.  This first-to-market Fortune company did not understand that the customer Continue Reading →

How to Improve your Innovation ROI with Early Stage Patent Expertise: In Depth Management Article

This article, How to Improve your Innovation ROI with Early Stage Patent Expertise,  was published in late 2010 as a pay for download article in Innovation Management Magazine.  It later became free for download, and I can share it with readers in this link.  I hope those responsible for creating value from IP in their organizations can find the insights in this article helpful.  Here is a synopsis: Innovation teams are often removed organizationally from a company’s patent matters. This can mean that corporate innovation processes move forward with little or no consideration of whether competitors can legally “knock off” the resulting consumer offering. Companies may then not attain expected ROI because competitors can legally copy the innovation—be it a product, technology or otherwise—without incurring legal liability. It may not always be necessary to protect innovation efforts with patents, such as where a product has a short shelf-life or where the company may desire to maintain trade secret protection for the technology. However, for innovation endeavors where go-forward financial models assume exclusivity, companies often require patent protection. Also, the absence of patent insights at an early stage frequently means that innovations are not properly scoped for potential infringement risk until significant Continue Reading →

Companies Adopting Open Innovation Must Incorporate Patent Information at the Front End

(Editorial note:  This is a repost from this blog over 2 years ago, but the content is more relevant than ever.  On January 20, 2010, I am participating in a Yet2.com webinar with Ben DuPont and Jason Lye where we will be sharing our thoughts about marketing technology to “non-traditional” technology buyers, many of whom come to the table because they are adopting Open Innovation into their product and technology development processes.  I thought this “classic” post would be a good overview for anyone of my viewpoint for those who find my blog as a result of this event.  For regular readers, well, I hope you enjoy this too.  I will post a link to the recorded webinar when it is available. ) Open Innovation is unquestionably becoming a “hot” area of focus for U.S. companies, especially in the current economic climate in which businesses are more than ever focused on smarter ways of doing business. And, why wouldn’t Open Innovation be an intriguing business model when companies can fill their product and technology pipelines for significantly lower cost and with more variability of ideas than typically is possible from their own R&D infrastructures? As a result, more and more Continue Reading →

My Gift to You: Free (or almost free) Patent Searching and Analysis Tools

Happy Holidays everyone!  I woke up this morning to the Christmas sunrise over Miami Beach on Christmas morning.  Having grown up in this town–where Christmas means a trip to the beach, not the joy of new ice skates–I am feeling a whole lot of holiday spirit.  This made me realize that I have been meaning to respond to some inquiries folks have made about patent searching tools that I use in my daily IP Strategy work.   Since most of these are free (or almost) free, consider this your holiday gift from me! I hear it now:  “Free?  Did she say free?  But, such and such company wants to charge me $1500 a month, which is a much better deal than my lawyers charge me for monitoring patents in my business space on an ongoing basis.  And, this consultant offered to do a whitespace analysis that would solve all my innovation issues for $20K, which seemed like a deal, given how much time he said it would save my team so that we could get our new product lines to market so much faster.” Certainly, in the last few years, there have been countless business models that have sprung up to Continue Reading →

How Patent Whitespace Analysis Can Set a Company Up for Sustainable Failure

I spent a few days last week at the Innovation Cubed Conference in Orlando.  While there, I heard two instances of use of a term that I absolutely hate, at least when it is used by innovation professionals to define in some manner the innovation processes of their respective organizations.   This word is: PATENT WHITESPACE ANALYSIS Not only do I hate this phrase, I think that companies that utilize patent (or IP) whitespace analysis to define their product and technology development pathways are quite possibly setting themselves up for failure.  And, it’s bad enough that a single innovation project might fail as a result of the faulty data inputs that can occur from relying on whitespace assessments, but I think that most corporate processes incorporating patent whitespace analysis are based upon faulty methodology, thus setting the organization up for sustainable failure. For the uninitiated, when applied to the patent world, the term “whitespace” designates an analysis methodology that identifies the absence of patents in a particular product or technology area as a primary driver of innovation decision-making.  This term has been used for some years by patent and business professionals alike to provide information about whether one can obtain Continue Reading →

We’re Measuring the Wrong Things: Inventiveness and Patents Do Not Equal Innovation

Few things infuriate me more than supposed experts who make statements along the lines of “patents are critical to innovation.”  I have avoided stating my views widely in this forum because I didn’t want to get into a contest of one upmanship with my patent lawyer peers.  However, in the last couple of weeks, several pieces of information have hit my radar screen that make this seem like the right time to go public with my views. Let my position be very clear:  we create a false dichotomy when saying “innovation is not possible without patents.”  The issue is much more complex and nuanced than this:  in a particular instance, patents may be critical to innovation, but they might also be only slightly important or–likely in the majority of situations–they might be wholly irrelevant to innovation.  (I talk more about this in this recent interview in Innovation Management Magazine.) Unfortunately, where you stand also depends on where you sit, and sitting behind a desk writing or examining patents may color your belief that patents are the cure for America’s innovation ills.  (The cynic would likely note that relying on a patent practitioner or the Commissioner of the US Patent Office Continue Reading →

Patent Information is a Necessary Calibration Tool: How the Pilgrims’ Journey is a Metaphor for the Innovation Process

Regular readers of this blog will recognize that I am a strong advocate of the use of patent information in the front end of innovation processes.  (More on this here, here and here.)  Relatively few innovation professionals actually do so, however, likely because it can be difficult for innovators to understand how to change the longstanding paradigm where lawyers are perceived to be the people who “put the ‘no’ in innovation.”  Put simply, I find that innovation professionals prefer to leave anything smelling of legal advice out of the front end of their processes because they think they will not be able to do their jobs if the lawyers show up to their meetings. Of course, it makes little sense for innovation professionals to make significant business decisions involving new products or technology without also knowing whether they will be able to own the fruits of their innovations or whether a competitor will be able stop them from moving forward.  To this end, I have been working for sometime to develop a metaphor to demonstrate how the use of patent information can improve the outcome of innovation processes.  And, I think I have succeeded in doing so–in one word:  PILGRIMS. Continue Reading →

Jackie Hutter Speaking at the Minneapolis May LES Meeting

I love meeting my online friends and collaborators IRL (“in real life”).  If any of you are located in the Minneapolis area, please consider attending May 11, 2010 LES meeting where I will speak on collection and analysis of patent data.   I am being sponsored by this event by my client Clyde Hanson of Venture Isles. Here is the information as circulated by Mr. Hanson: You are welcomed to attend the luncheon even if you are not a member.  Ms. Hutter is an advisor to Venture Isles and we have worked together on many projects.  She is a self-described “recovering patent attorney”, a prolific blogger and a sharp intellect so it will be a high-energy event.  The food is by D’Amico has been consistently good.  Save room for dessert.  Please register at: LES USA/CANADA How to Properly Collect, Analyze and Leverage Patent Information to Enhance Your Licensing Programs Speaker: Jackie Hutter, MS, JD    The Hutter Group:  IP Business Strategy Patent data can provide much value to licensing programs by allowing one to identify potential licensees, partners or infringers.  However, one must know how to collect and analyze such data in a way that provides relevant and actionable insights.  An experienced Continue Reading →

How to Improve the Performance of M&A: Determine Whether the Target Really Provides Durable Competitive Advantage

Recently, I was asked to speak to a Georgia Tech MBA class about IP Strategy–specifically about the inter-play of IP in M&A.  A significant portion of my talk addressed how poorly existing due diligence and IP metric methodologies traditionally perform to predict the financial success of M&A transactions.  There is no question that improvements are needed in this regard.  For example, in 2006, Inc.com reported that 60-70 % of acquisitions fail and more than 90 % of acquired businesses lose value. These somewhat dismal results leave no doubt that acquiring companies need better sources of information to properly vet and select acquisition targets. Having been involved in M&A transactions as a legal and business advisor over the years, I have developed unique insights on the the due diligence and IP metric processes from both sides of deals.  In these deals, the highest (and presumably most expensive) advice of investment bankers and M&A attorneys directed the deal flow.  Significantly, however, much like a real estate transaction, these advisors took their money at the close of the deal and left my client with the property.  These advisors had no incentive to ensure the house was in good shape after they walked away Continue Reading →

Beware of Bogus Patent Analytics: Forward-Citation Analysis Leads to False Conclusions about Significance of Client’s Patent

Patent application filing and issuance data can be a useful tool to extract valuable competitive business information that is “hiding in plain sight.”  For example, in industries where patents are viewed as pertinent for creating and protecting long term value, patent filing data can present a strong signal about where your competitors are investing their time and money in innovation that may result in their future product or technology offerings.  In another example, such data analysis, also known as “patent analytics” or “patent landscaping,” can provide useful information about potential new markets for your company’s technology.  In this regard, for example, a chemical manufacturer can review how others are utilizing their products by reviewing patent filings.  For patent owners, analytics can reveal whether infringement may be occurring or whether it might have a higher value using forward citation analysis, which is a review of how many times a patent is cited in the later record of other patents. Various flavors of patent analytics are offered by any number of companies today.  As a corporate IP attorney, I purchased such products, which certainly do not come cheap.  In the last couple of years, I have also evaluated a number of these products to see whether they can provide value to my IP Strategy clients.  Continue Reading →