This topic provides an overview of the nature of intellectual property (IP) and how it is protected and valued. A key issue in successful commercialisation of innovation is the identification, ownership and protection of creative output and proprietary knowledge.
IP can be formally registered (e.g. patents, trademarks) or automatically assigned upon creation (e.g. copyright). The formal registration of IP provides the recognition of rights, but does not of itself provide legal protection. An IP strategy needs to be created that serves to protect IP and foster its development from intellectual capital, through intellectual assets to IP.
It is important to register IP assets within a business via an IP portfolio, to place a valuation on these, and to make strategic decisions as to whether to proceed with their commercialisation or not. Commercialisation is a high risk and costly process and having a formal approach to its management as illustrated by the IDD framework can be beneficial.
Textbooks and readings
Berkman, M. (2002). "Valuing Intellectual Property Assets for Licensing Transactions." Licensing Journal 28(4): 16-22.
Bertolotti, N. (1995). "Valuing Intellectual Property." Managing Intellectual Property 46(February): 28-32.
Hanel, P. (2006). "Intellectual Property Rights Business Management Practices: A Survey of the Literature." Technovation 26(8): 895-931.
Sausmer, J. (2010). "The Income Approach to Valuing Intellectual Property." New Jersey CPA May/June(2010): 28.
Tenebaum, D. (2002). "Valuing Intellectual Property Assets." Computer and Internet Lawyer 19(2): 1-8.