Selling patent portfolio: A ray of hope

There has been a recent buzz about Kodak’s patent portfolio sale. After filing bankruptcy yesterday, Kodak – a Rochester based company, aims at selling and licensing its patent portfolio with a whopping 1,100 digital imaging patents. Valuation experts estimate the portfolio worth $2.6 billion. While companies are striving for maintaining cash flows and operating profits, there are chances when you lose priority of your existing patent portfolio. Interestingly, in case of Kodak (which reportedly registered the first trademark in 1888), the robust digital imaging patent portfolio has been a large asset to the company. 

Kodak, already filed lawsuits against Apple and RIM in 2010 for infringing upon their digital imaging technology patents. The emerging assessment is the fact that it is highly essential for businesses worldwide to drive maximum advantage of their IP portfolio.You can  monetize by selling, licensing, cross- licensing, franchising your IP assets depending on your business requirements and global reach. Looking at the case of Kodak’s bankruptcy, the sale or licensing of a well structured, robust patent portfolio is proving to be a ray of hope. This is definitely a survival strategy and patent portfolio has imparted maximum contribution here. We hope, from now onwards, fellow entrepreneurs and businesses start taking their IP portfolio more seriously!

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Valuate your IP timely

When we talk about tangible, brick or mortar assets, we have an estimate of the monetary value. In case of intangible assets like Intellectual Property, the valuation becomes challenging. Unlike tangible assets, Valuation of patents, brand trademarks, license agreements, copyrights and designs pose a great deal of strategic insight and analysis. A timely IP audit is an excellent way to keep track of your firm’s current IP portfolio and impart clear statistics to the IP valuation process.

While, there are many approaches adopted for an IP valuation, DCF method (Discounted cash flow) or the income based approach has been the most promising apart from the market and cost based approaches. IP valuation holds utmost importance for your firm when you undergo M&A, takeovers, patent sales, raising capital for start-ups, financial securitization, estimating damage claims, and collateralization, financial forecasting and licensing deals. In a nutshell, IP valuation gives you the monetary worth of your intangible business assets.

Since, IP is an integral part of your business assets, take wide measures to compute the right value of your projected portfolio. For start ups having right inventions or patents in their kitty, valuation by far is the most viable method to raise venture capital and angel funding based on the current worth of your intellectual property assets. Besides that, if you wish to sell or collateralize, IP valuation comes in handy. It is recommended for early technology based start ups and established firms to undergo well timed IP audits and valuate the worth of your intangible assets portfolio.  

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