The primary reason for having a patent portfolio
Risk Mitigation
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.
On this page:
We conducted a global survey on how patent professionals quantify and mitigate patent risk.
The results of the survey are eye-opening, painting a misleading picture of patent risk as Black Swans.
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…
1
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
2
Develop a Risk Framework
Categorise and rank the different risk areas. Use Cipher’s Portfolio Optimisation model and Benchmarking dashboard to quantify.
3
Internal Communication
Use a Risk Framework and Cipher model outcomes to propose risk mitigation solutions to the C-Suite.
4
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
Cipher can help with Risk Mitigation by…
Benchmarking your competitors
With an objective and repeatable way to benchmark patents in your portfolio against your known competitors, threats and new entrants.
Rightsizing your portfolio
We provide you with efficient access to the data you need to calculate and communicate the balance between the cost of your portfolio, measured against your litigation threats.
Dealing with patent assertion
With Cipher you can efficiently and effectively assess the relevance of large portfolios and be equipped with an evidence based response to the threat.
Insights and Events
Patent Risk Management Webinar
How can a structured approach to the management of patent risk drastically improve communication within your organisation and mitigate potentially catastrophic risks? Watch our webinar to find out.
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Management of Patent Risk
See how patent-owning organisations such as ARM, Infineon and Facebook deal with patent risk and discover why patent risk management is crucial to protecting your organisation’s greatest asset.
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Death, Taxes and Patent Risk
What is patent risk and how best should it be communicated to the board? At a time where 80% of a company’s assets are intangible, understanding all possible sources of risks is paramount.
Read more
Patent Risk Survey Key Findings
82% of patent owners will face patent risk in the next two years. Read the Key Findings of our global Patent Risk Survey to discover how IP professionals deal with patent risk.
Read more
As featured in…
Case Studies
Ocado on balancing IP protection with mitigation of patent risk and conflict
Head of IP, Lucy Wojcik, talks about the need instant answers to who’s doing what and how Cipher helped Ocado implement a world class IP strategy.
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CFC Underwriting on being data led to accurately assess IP insurance risk
Maddi Brown, Intellectual Property Practice Leader at CFC Underwriting Ltd, shares how Cipher has helped to understand and quantify IP insurance risk.
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Red Hat on using the Cipher Optimisation Model
Jared Engstrom, Head of Patent Development, talks about the growth in Red Hat’s portfolio, how he has used Cipher’s custom classifiers and how the Cipher Optimisation model has improved their understanding of the competitive landscape.
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BAE Systems on the importance of competitive intelligence in disruptive technology environments
Chief Counsel for Intellectual Property and Technology Law, Dr. Bobby Mukherjee, explains how his IP team uses Cipher to help communicate the importance of IP internally and to navigate complex technology landscapes.
Read more
With Cipher you can also…
Gather competitor intelligence
Understand who’s doing what by automating patent to technology mapping.
Model cross licensing
Combine patent and revenue data to determine rational licensing outcomes.
Manage your budget
Justify patent budgets to CFOs and others to communicate the impact of your investment.
Optimise your portfolio
Ensure you have the right portfolio to meet your strategic patenting objectives.
Tackle inbound patent assertion
Be prepared with evidence to create a fast and effective threat assessment.
Benchmark your portfolio
Assess your portfolio in comparison to other owners through your own technology lens.
Monetise your portfolio
Identify opportunities to create value through licensing or sale of patent assets.
Predict technology trends
Track new technologies of today and discover the unknown owners of future disruptive innovation.
Conduct Due Diligence
Automate manual reviews for efficient execution of M&A licensing transactions.