A key component of Intellectual Property Strategy (IPS) is the patent portfolio. Building up a strong IPS with a well thought out patent portfolio pays off in the long run because it will mitigize risk for an investor and increase overall value of your startup. Patent portfolios are a significant investments and competitive weapons supporting the business strategy.
One type of patent portfolio is an aggressive IP portfolio. An aggressive IP portfolio supporting the decision making process is often embedded in the company’s day-to-day operations. Identifying which additional patents are required results from evaluating the progress of innovations towards commercialization, re-evaluating the strategic importance of each innovation, and generating new patents. Patents become an important value driver, with the primary business goal being extracting value from the patent portfolio.
This is a typical feature of high-tech firms. Patents are important tools because they provide a serious competitive tool supporting a primary business goal.
In this context:
- the patent portfolio extracts value from patents
- grants the company a monopoly that prohibits others from commercializing the patented technology
An Aggressive portfolio requires holding of a large number of patents, leading to a blanketing patent strategy where each patent has a large blocking power but comes with high costs.
Having an aggressive patent portfolio is a useful instrument in negotiations or cross-licensing agreements, and the mere existence of an aggressive portfolio can reinforce the bargaining power of patent owner. It also represents a source of income, helping the company finance measures to strengthen its competitive advantage.
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