Wednesday, September 17, 2014

"By now, there should be no argument that intangible assets have become the key and irreversible underliers to success and profitability for most companies.  Remember, it is an economic fact that 80+% of a company's value and source of revenue evolve directly from intangible assets."  (Click to

This comes close to the end of the post as you see but it could very well be the lead in.  The situation at issue here, however, is the Business Plan and its "rigid structure and sequence."  In other words, how is a company to solve the conflict of adhering to its intellectual property based Business Plan when current events mandate change?  Global activity, predatory competition, government intervention, mergers and acquisitions and corporate alliances form a roiling terrain hostile to following a prescripted plan.  However, for most lending institutions, a well crefted Business Plan with a competent management team remain an essential.

It appears too much emphasis is placed on the "rigidity"/inflexibility" of the BP strategy and tactics- a condition at odds with the new normal of IP dominating the asset base.  When a product or service emerges from the R&D cycle with strong market potential and patent protection (pending), a thorough BP Strategy points to options sensitive to the market to be entered;  a) as a patent- protected product, b) a an asset to be licensed for royalties, c) as part of a technology transfer, d) some combination near term/long term of the options.

The onus is on the BP authors to complete a due diligence that includes market research, competitive analyses, business development strategic planning, product planning and a large measure of "what if" scenario planning.  The Plan should be done as close as possible to market entry with any of the options to maximize the revcenue potential and protect the IP.  This provides the flexibility needed with meeting the realities of the marketplace.

Thursday, September 11, 2014

Intellectual Ventures: Patent Troll plans to Start actually making things, not breaking things.

Intellectual Ventures: Patent Troll Funds Startups, New Products - Businessweek:

The worlds largest patent troll, apparently, has decided to go legit. Kinda.

This company, aptly abbreviated IV as in a vampire draining blood, is the largest holder of patents with some 70,000. More than IBM with more than 20 years as the world's largest patenting company, by far.

With such a war chest of patents, it is hard for anyone to make anything that doesn't violate their patents. This is especially the case if you don't actually make anything, as a perfect troll would do.

So IV has been drawing blood for the economy on a rather endless basis. But, if you pay the blood money for a few of their patents, you get "protection" where nobody else can mess with you without having to fight the entire war chest of IV.

It seems like the perfect business model based on pirates and Somalian entrepreneurs.

So why break such a tried and proven business model?

I think on the tax returns, where you put our line of business, entering "Patent Troll" is likely no problem for the IRS. They will take the taxes on those profits just the same as for the companies that actually produced a product.

We have a few ideas why the patent troll would change his stripes, but we would like to hear what others have to offer?

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