A business should actively manage its intellectual property (IP) portfolio, including patents, trademarks, copyrights and trade secrets. IP portfolio management is an essential strategic practice for businesses, yet not all do it.
Here is what to know about this process:
What is it?
IP portfolio management is the process of identifying, acquiring, protecting and optimizing a business’s patents, trademarks, copyrights, trade secrets and other intangible assets. Basically, it’s when a business:
- Knows exactly what it owns
- Files for new IP or buys existing IP from others
- Confirms that no one is using its IP without permission
- Renews registrations and updates ownership records
- Finds opportunities to turn its IP into money
- Ensures its IP aligns with business goals
It’s important for a business to do such management frequently to fully benefit from it.
Why do businesses do it?
IP portfolio management helps a business:
- Maintain its competitive advantage by identifying and preventing infringement earlier
- Build strong barriers to entry, making it difficult for competitors to mimic products or processes
- Expands its market share by acquiring new rights
- Mitigate risks by ensuring renewal fees are paid to prevent losing rights
- Generate revenue by licensing or selling its rights to others
- Removes assets that do not support the existing business goals
- Cut costs by removing underperforming assets (those that do not generate revenue or protect a key product) to focus on high-value ones, since IP fees can be high, especially when maintaining a large portfolio
A business that does IP portfolio management can see higher profits and avoid legal trouble compared to one that overlooks the process.
Some business owners avoid IP portfolio management until they are in a crisis. But this is not the best way to approach it. Learn more about how to protect your inventions and market share to avoid last-minute panics.