The primary reason for having a patent portfolio
One of the primary objectives of holding a patent portfolio is to mitigate risk. Patent Risk can manifest itself in many different ways. Being able to understand where risks lie, how to quantify and communicate risk to the C suite and proposing a strategy for mitigating that risk, is key.
We conducted a global survey on how patent professionals quantify and mitigate patent risk.
Have you ever asked these questions?
How can I prepare my organisation for the patent risks ahead?
Many organisations use economic models (such as the Cipher Optimisation Model) to develop a patent strategy that anticipates and mitigate the risk posed by owners of ‘relevant to technologies’ you deploy.
What information best conveys to the CTO and CFO the value delivered by our patent portfolio?
Many companies cannot point to direct licensing revenue. There are, however, established ways to link the cost of your portfolio to the quantum of patent risk mitigated. Executives are alive to the substantial risk of paying away substantial royalties. Explaining the relationship between your patents and the ability to neutralise threats plays well before this audience.
How can I measure the impact of our portfolio if the primary objective is to neutralise threats from third parties?
The majority of companies agree that a well-balanced portfolio reduces the risk of patent litigation. Calculating your organisation’s exposure to patent risk requires an objective and repeatable model, which takes account of the changing patent landscape and relative revenues.
If these are your issues, Cipher can help you.
How can Cipher help with Risk Mitigation…
Identify Areas of Risk
What are the top areas of risk to your business? Use Cipher to understand where you may over or understocked versus your competitors
Use a Risk Framework and Cipher model outcomes to propose risk mitigation solutions to the C-Suite.
Risk Mitigation Strategy
Measure the effect of risk mitigation strategies and amend as a new risk arises
Whatever your perspective, no-body wants to be unprepared for litigation. In today’s environment, the risks are so large that you want to be ready. While figuring out whether you have a balanced portfolio is hard, it’s something that more and more companies are taking very seriously.
Erik Oliver, COO, Richardson Oliver Insights
Tackling PAE Risk
One area of patent risk to organisations is that from Patent Assertion Entities (PAE, also referred to as NPEs). There are several ways to mitigate or reduce the risk of patent litigation. Becoming a member of organisations that can afford you protection such as LOT Network is one solution. LOT Network has over 1000 members and affords protection to over 2.7 million patents.
Cipher is a proud member of LOT Network and supports LOT Network in maintaining the master list of all the 2.7 million patents owned by members and captured by the LOT umbrella. Analysis of the LOT Network patent portfolio can be viewed in the 2020 LOT Network Report.
Cipher gave us the ability to understand the technology landscape and was an important foundation layer in creating a strategy for protecting our innovations whilst enabling us to understand how best to deal with others in potential conflict areas.
Lucy Wojcik, Head of IP, Ocado