
“Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.”
– World Intellectual Property Organization
From an entrepreneur’s inspired idea to management "know-how" to foundational patents for a breakthrough innovation, Intellectual Property or IP – otherwise defined as creations of the mind used in commerce – is the engine for value creation and economic growth.
Competitive success depends upon the information and knowledge a company possesses, whether the result of research or the skills of its people. Therefore, we believe it is critically important to create knowledge, improve skills and convert these capabilities into assets, preferably in the form of patents.
Patents are a leading indicator of innovation, they have been shown to be predictive of future financial performance. Analyzing patent growth and patent impact on an industry can provide valuable clues in determining leadership, as well as changes in competitiveness. Successful innovation often leads to significant competitive differentiation; in turn, resulting in market share gains, pricing power leading to higher margins and higher returns on capital.
More than half the value of the $12 trillion Wilshire 5000 Index is based on intangible assets with intellectual property as the largest contributor at over $7 trillion in public market value.
“The ‘telephone’ has too many shortcomings to be seriously considered a means of communication.”
– Western Union Internal Memo, 1876
