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19th June 2021

Pulling Back the Curtain: Calculating Return on Investment of Patent Portfolios

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Measuring the return on an organisation’s greatest and most expensive asset

Return on Investment (ROI) is a widely used measure of efficiency or profitability of an investment. It measures the return on a particular investment relative to its cost and has been applied across virtually every area of business from R&D, brand, marketing and information technology. Although ROI is routinely used to identify ways to enhance the performance of investments, it has not been applied to patent portfolios. 

With $40 billion spent on patent portfolios every year, it’s no surprise that more questions are being asked about the value of those patent assets. And indeed, whether the organisation is receiving maximum returns on such a substantial investment.

Jeremiah Chan and Jonathan Liu from Facebook, and Nigel Swycher and Steve Harris from Cipher authored a report titled, Pulling Back the Curtain: Calculating Return on Investment of Patent Portfolios. The report covers the following areas:

  • Why is it important to measure ROI?
  • Is Portfolio ROI too difficult to measure?
  • The building blocks of ROI analysis
  • Applying the ROI calculation to a hypothetical company

While there is some inherent complexity in calculating Portfolio ROI, the message in this report is both simple and direct. Portfolio ROI identifies which parts of your portfolio are delivering value to your organisation and which are not. The steps in the process will be enlightening, and the destination delivers clarity about what needs to change and why.

The data, the tools and the model are all ready to be used. Perhaps it’s time to pull back the curtain.

To access the full report, fill in the form below.

Access ‘Pulling back the curtain’ Report

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CALCULATING ROI OF PATENT PORTFOLIOS

Discover how you can measure the value of your patent assets

  • Why is it important to measure ROI?
  • Is Portfolio ROI too difficult to measure?
  • The building blocks of ROI analysis
  • Applying the ROI calculation to a hypothetical company

ROI of Patent Portfolios Report

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With Cipher you can…

Portfolio Optimisation connecting cogs

Optimise your portfolio

Ensure you have the right portfolio to meet your strategic patenting objectives.

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Competitive Intelligence

Gather competitor intelligence

Understand who’s doing what by automating patent to technology mapping.

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Cross Licensing

Model cross licensing

Combine patent and revenue data to determine rational licensing outcomes.

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Manage your budget

Justify patent budgets and communicate the impact of your investment.

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Conduct due diligence

Automate manual reviews for efficient execution of M&A and licensing transactions.

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Tackle inbound patent assertion

Be prepared with evidence to create a fast and effective threat assessment.

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Benchmark your portfolio

Assess your portfolio in comparison to other owners through your technology lens.

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Monetise your portfolio

Identify opportunities to create value through licensing or sale of patent assets.

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Predict technology trends

Track new technologies and discover the unknown owners of future innovation.

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Create Risk Mitigation Strategies

Understand the materiality of your threats to define your risk mitigation strategy.

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Improve your patent strategy now

Speak to the Cipher team today.

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