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
