The IP Story

 What is Intellectual Property or IP?

 “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.

Why Is IP Important?

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.   

The Last Frontier

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.

  • New patent applications are growing six times faster than GDP with over 185,000 new patents granted annually.
  • 3,100 public companies have intellectual property (IP) in the form of granted U.S. patents.
  • Nearly half of the public companies are in the Russell Microcap asset-class of under $200 million in market cap.
  • Of companies ranking in the top quintile for technology leadership, 1 in 3 have a market cap under $200 million.

 

 

“The ‘telephone’ has too many shortcomings to be seriously considered a means of communication.”

– Western Union Internal Memo, 1876

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