Patent monetization is the term used when referring to revenue generation. It may also be used when discussing a business or person who attempts to make money by licensing patents of which it has the rights. There are several strategies used and many different forms of monetization.
The negative title given to the people who attempt to create revenue via purchase and enforcement of patents against alleged infringers is patent trolls. When this is done, it is considered aggressive and opportunistic. Typically there is no motive to continue development, manufacturing or marketing of the invention that is patented. Other businesses or people, not regarded as trolls, may attempt to gain revenue from patents on things they have created, manufactured or marketed.
The first company to have monetized its collection of patents was Texas Instruments. It did so during the 1990s with its more than 38,000 patents, when the company was beginning to lose share to its competitors. After this example was set, IBM chose to do the same during the 1990s. It monetized its patents, making more than one billion dollars in revenue annually. Microsoft made deals with Android using its patents, which amounted to more than 70 percent of the Android market share.
There are many real examples of patents being used successfully to bring in more money. In fact, Eastman Kodak used its patents portfolio in order to make revenue when the company was financially struggling. It is reported that the licensing programs of Kodak have brought in more than three billion dollars in revenue over the last several years.
This campaign is a process and it must begin with clarity in goals. Begin by deciding on broad objectives that can be tailored to more specific and concrete goals. Some examples of what a broad goal made read like: secure an advantage in the competition by hindering other competitors, bring in revenue, build a strong reputation as a lead innovator. The goals should be put in order of their importance. Often persons will have financial goals that do not align with the other business goals in mind.
Once the campaign has gained some clarity, the patents should be analyzed and chosen for monetization. Large patent portfolios of organizations must be narrowed down and the organizations will have take on the difficult job of selecting which ones to be monetized. There are certain elements related to the patent that should be consider when deciding on what to monetize, these include : value, infringement, strength, core versus non-core.
Because there are so many techniques used to do this, it is important that individuals choose the right method for monetization. Some of the most common strategies employed: direct licensing, indirect licensing, commercialization, enforcement, and sale. Monetizing campaigns may be costly. This is why it is important that the right target and strategy be enforced.
In terms of patent monetization, there is no one solution. There are numerous objectives, types and strategies that may be involved. Still, the ultimate goal of these campaigns is to generate revenue by utilizing the patents portfolio of a person or company.
The negative title given to the people who attempt to create revenue via purchase and enforcement of patents against alleged infringers is patent trolls. When this is done, it is considered aggressive and opportunistic. Typically there is no motive to continue development, manufacturing or marketing of the invention that is patented. Other businesses or people, not regarded as trolls, may attempt to gain revenue from patents on things they have created, manufactured or marketed.
The first company to have monetized its collection of patents was Texas Instruments. It did so during the 1990s with its more than 38,000 patents, when the company was beginning to lose share to its competitors. After this example was set, IBM chose to do the same during the 1990s. It monetized its patents, making more than one billion dollars in revenue annually. Microsoft made deals with Android using its patents, which amounted to more than 70 percent of the Android market share.
There are many real examples of patents being used successfully to bring in more money. In fact, Eastman Kodak used its patents portfolio in order to make revenue when the company was financially struggling. It is reported that the licensing programs of Kodak have brought in more than three billion dollars in revenue over the last several years.
This campaign is a process and it must begin with clarity in goals. Begin by deciding on broad objectives that can be tailored to more specific and concrete goals. Some examples of what a broad goal made read like: secure an advantage in the competition by hindering other competitors, bring in revenue, build a strong reputation as a lead innovator. The goals should be put in order of their importance. Often persons will have financial goals that do not align with the other business goals in mind.
Once the campaign has gained some clarity, the patents should be analyzed and chosen for monetization. Large patent portfolios of organizations must be narrowed down and the organizations will have take on the difficult job of selecting which ones to be monetized. There are certain elements related to the patent that should be consider when deciding on what to monetize, these include : value, infringement, strength, core versus non-core.
Because there are so many techniques used to do this, it is important that individuals choose the right method for monetization. Some of the most common strategies employed: direct licensing, indirect licensing, commercialization, enforcement, and sale. Monetizing campaigns may be costly. This is why it is important that the right target and strategy be enforced.
In terms of patent monetization, there is no one solution. There are numerous objectives, types and strategies that may be involved. Still, the ultimate goal of these campaigns is to generate revenue by utilizing the patents portfolio of a person or company.
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