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
Enhancing Innovation ROI by Adding Patents at the Front End: Some Resources
Hey “Patent Experts”: How Do You Like Groupon’s Patent Now? *Crickets*
Yesterday's announcement of the firing of Groupon's CEO and the hope for a rebirth of the company's business model brought to mind a post that I wrote a couple of years ago railing against the self-interested opinions of "patent experts" on why Google offered $6 Billion for Groupon in late 2010. Re-reading the post in the rear-view mirror, it is more clear than ever that Google made the offer for the precise reason I set out below in December 2010:
Google, and other acquirers, buy business models, not patents. As we strategy-focused IP people have been saying for years, a patent is worthless unless it covers a viable business model–either yours or one you want to own. Google is interested in Groupon because it offers them an established business model in an area that fits into their long term business strategy. Are the patents nice to have? Of course,
Is Traction the New IP for Startups? Maybe Not for Yours.
"Traction is the new IP." This emerging mantra results in many startup CEOs eschewing the traditional path of patent and other forms of IP protection. While I am aware of no rigorous studies conducted to date, anecdotal information indicates that startup entrepreneurs are increasingly saying no to patents, and likely to other forms of IP. Instead, these entrepreneurs first seek to validate their business models and then follow business plans focused on generating recurring revenue, often avoiding altogether the step of protecting their business idea or product with IP. From my own interactions with startup CEO's, I can confirm that the pendulum has swung very far to the "IP is worthless" side of things. But, is this emerging conventional wisdom actually correct? There is no doubt that over the years far too many startup company resources have been spent on patents and other forms of IP protection (many of
Do Patents Matter? Lean Startups Should Ignore Expert Advice and Let Their Data Drive Patenting Decisions
Many hold strong opinions on the value of patents to business. Both in person and online, there are any number of "experts" who stridently insist that without patent protection, a company's business goals are doomed. With about 350,000 new patent applications filed in 2012, there is no question that many agree that patents create, and are even critical to, business value. But, as the 2012 US presidential election cycle demonstrated, actual data can illuminate how expensive experts are often flat out wrong. So where's the "real data" that will allow business people to know whether a patent is the right decision for their company? This information is likely even more critical for startup entrepreneurs, most of whom have no choice but to rely on self-interested expert opinion regarding the value of patents to their business.
Entrepreneurs who follow
Patents–Who Needs Them? Not Most Startup Entrepreneurs.
A recent article in TechCrunch indicates that entrepreneurs are less likely to file patents than in the past. Nonetheless, there remain countless patent lawyers and agents who will argue convincingly that an entrepreneur must obtain a patent in order to succeed and who will take their $5-15K to file a darned good patent application that won't provide them a bit of business value in the long run. Even worse, the resources expended in the patent process robs the entrepreneur of needed cash that will allow them to gain customers, and of their most valuable asset: time. But when the only tool you have is a hammer, everything looks like a nail--which is why those still in the business of writing patent applications will continue to make their case to entrepreneurs (and investors) who lack the domain expertise to
A Startup Company’s Experiences with Open Innovation-Part 2: Adventures of a Chief Frog Kisser
A Startup Company’s Experiences with Open Innovation-Part 1: Dealing with a Large Company Having Small Innovation Goals
For the past several months, I have been at the helm of Evgentech, a startup company with game-changing battery charging methodology. Our technology was developed by young men who did not come from a traditional engineering background and, even then, their discovery was a serendipitous result of the co-founders’ recognition of a new principle stemming from investigations initially directed toward something wholly different from battery charging. Put simply, Evgentech’s technology would not have been found if anyone--outsider or not--would have been looking for it. We are now bringing to market the first truly new battery charging paradigm in over 100 years. To put things in perspective, with Evgentech's technology, you will be able to charge your batteries in a fraction of the time possible with existing battery charging methodologies, which means you can charge your iPhone to "full" in as little as 20 minutes, as compared to the about 3-5
Contrarian Viewpoint: Patents Likely Matter Little to US Innovation and Job Creation
Many experts insist that innovation cannot succeed without patents, and that the delays in the US Patent Office stifle innovation. This viewpoint is like to become more widely believed by the public as US Patent Office Director Stephen Kappos sees a way to improve the dismal operations of the Patent Office by equating patents as job creation tools, which necessarily requires patents to be asserted as critical for innovation to occur. I believe it is highly misleading, and even harmful in many cases, to say that patents are the end-all be-all to innovation. I also think that fixing the Patent Office--which will invariably mean that more people will see value in obtaining patents to support their business idea--should be viewed more as a job creation engine for patent attorneys and those who support them (including Patent Office employees), as opposed to creating jobs that can help improve the
IP Strategist on the Radio: 2 Recent Interviews
As my consulting practice becomes ever more busy, blogging must be relegated to times when client work is not pressing--that ever-elusive free time. But now that Summer is here, free time has been hard to come by--it's hard to write when at the pool with the kids or driving to Grandma's house--but I haven't been totally giving up my outreach. I recently participated in 2 radio interviews where I discussed the value of IP Strategy for entrepreneurs and inventors. Here I was on the 40 Year Old Business Virgin Radio Show with Dave Savage, Leader and President of The Inventors Association of Georgia and a person named Mohamed who has a really cool entrepreneurial story (sorry I didn't get his last name). The hosts of the show, Kile Lewis and Ted Jenkin, are irreverent business advisors, and you should enjoy the show. (I appear in the first half).
How the Northeastern Indiana Amish Serve as a Business Lesson about Patents
I have been spending time in Northeastern Indiana--the land of my roots--to introduce my children to their aunts, uncles and many, many cousins. Catching up with extended family has made it difficult to formulate a post in the past couple of weeks, but I have a few moments this morning and wanted to capture a thought that has been rattling around in my head since I arrived here. Anyone who has spent time in this part of the U.S. will be familiar with the presence of the Amish as part of the cultural landscape. My children, as city kids, are fascinated whenever they see a carriage with families traveling along the side of the roads. However, I invariably consider about how stifling I would find it to not be able to interact with the outside world in the way that is familiar to me. In short, I wonder what it