IAM Issue 14

In order to understand the potential of a particular intellectual property,
both owners and investors have to have a clear picture of its worth

The patent system has proved effective at fostering developments in the
traditional pharmaceutical industry but the new area of biopharmaceutical
research is not being so well treated. The consequences could be devastating

The ability to securitise IP can be a valuable tool for companies looking to
raise finance. For any deal to go through, however, a series of important legal
issues must dealt with

There are a number of globalisation trends driving reliance on intellectual
property. One important question for companies is how they should consider
this in their own capital structures

The University of Wisconsin earns millions of dollars a year from WARF, its
technology licensing operation. Ownership of great patents is a prerequisite
but to maximise returns, explains WARF chief Carl Gulbrandsen, flexibility and
business skill are also essential

Senior management inside IP-owning companies will not deal with the details
of cross-bor der tax planning. However , ther e are a number of r ecurring themes
that they will need to be sur e have been addr essed in any pr oposals aimed at
reducing the overall gr oup tax bur den

There are a number of specific issues that need to be considered when
contemplating the securitisation of royalties from pharmaceutical-related patents

The economic pressures to resolve blocking patent positions and extract
value from patents will continue to drive demand for patent pools as a tool
to achieve faster, lower risk and less costly monetisation of IP

Although a series of recent conferences would seem to indicate that the
financial services industry is becoming more patent-literate, worries remain
that short-termism may see many in the sector taking their eyes off the ball

Securitisation may not be the best way for a company to raise capital using
its IP. Instead, many businesses may find that the ideal option is to
collateralise the rights they own

On 5th September 2005, Justice
Wilcox of the Australian Federal Court
handed down a landmark decision
finding Kazaa, the operators of the
world’s largest file-sharing system,
liable for authorising copyright
infringements by Australian users of
the system

Intellectual property resources
tend to be unaffected when natural
disasters strike. But they can play
an important role in getting
economies going again

Although a patent portfolio can
potentially be of great benefit to a
high-tech start-up, the quality of what
the portfolio contains will be decisive

Examination of a rival company’s
patent portfolio can provide crucial
insight into industry dynamics, identify
competitive threats and highlight
market opportunities. Jason Resnick,
of CPA, explains

With a track record of generating
multimillion-dollar awards for his
clients, Ray Niro is not an attorney
you want to be up against in a US
patent litigation

The recent London bombings look likely
to lead both the police and government
to push anti-counterfeit and anti-piracy
initiatives further down the priority list.

Technology companies see potentially
huge financial gains from China but
they need a strong IP regime for these
to become a reality. Providing tools for
the Chinese authorities to suppress
freedom of speech may end up making
the goal harder to achieve.