Helping organizations evaluate, create and monetize their patents and technology portfolios

Prosecution (Creating Patents)

Maximizing Patent Value in Technology Startups with WarpDriveIP

Introduction:

In the journey of a technology startup, three crucial milestones stand out: seeking initial financing, launching the first product, and pursuing an exit strategy, like acquisition or IPO. As a founder, your pending and/or issued patents are invaluable assets, offering not only legal advantages but also serving as compelling evidence of your technology’s innovation and value. At WarpDriveIP, we understand the pivotal role patents play at these critical junctures, influencing investors, customers, competitors, and the broader market.

Developing a Patent Portfolio:

Every startup must craft a robust patent strategy from the outset. Here’s how WarpDriveIP advises startups to build a strong patent portfolio:

1. Identify Market and Strategic Opportunities and Threats:
   • Pinpoint key market segments and future trends to protect.
   • Which patents should you create? Why? How should you prioritize the patent portfolio? Why?
   • Draft patent claims strategically to safeguard both current and anticipated market applications, securing broad protection.
2. Develop a Budget:
   • Make informed decisions by outlining a budget.
   • Is it worthwhile using a law firm for all the work or should I consider a services firm like WarpDriveIP to undertake certain tasks like prior art search, or a freedom to operate report
   • Consider filing fees, attorney costs, and prosecution expenses to prioritize patent applications effectively.
3. Prioritize Target Patents and Countries:
   • Determine priorities jurisdictions based on business needs and market presence.
   • Strategically file patent applications with significant customer bases or strategic importance.
   • U.S. patents are typically the most important and highest priced assets
4. Inventorship Identification:
   • Establish a systematic process for identifying patentable inventions.
   • Conduct regular patent meetings to capture new innovations and prioritize patent applications effectively.
5. Monitor Patent Deadlines:
   • Stay vigilant about deadlines for filing patent applications.
   • Ensure timely filings to secure priority rights and prevent third-party disclosures.
   • You could contract with an external service to manage these aspects, cost-effectively
6. Explore Revenue Generation:
   • Leverage patents for licensing or sales opportunities.
   • Patents can serve as a significant revenue stream through licensing agreements or outright sales.
   • Patents can be valued by proven methodologies – this may be a good investment before monetization
7. View Patents as Assets:
   • Recognize patents as valuable assets with long-term potential.
   • Investing in patent preparation and filing can yield substantial returns in licensing fees, sales proceeds, or court judgments.
8. Government Funding Considerations:
   • Be mindful of government funding obligations regarding inventions and patents.
   • Understand the implications of government rights on patent licensing and enforcement.
9. Standards Bodies Engagement:
   • Develop a strategy for participating in standards bodies if relevant.
   • Ensure compliance with IP policies and consider licensing obligations.
10. Regular Strategy Reviews:
    • Implement regular reviews of patent applications to align with business goals.
    • Adjust patent filings based on evolving product offerings and market dynamics.

Patent Application Timing Considerations:

Timing is crucial when filing patent applications, especially regarding complete vs. provisional filings and foreign jurisdiction filings.

Filing in the US:

• Evaluate the benefits of provisional vs. utility applications based on cost and examination considerations.

Filing in Foreign Jurisdictions:

• Strategically plan foreign filings to meet absolute novelty requirements.
• Consider options like PCT applications or regional patent agreements for cost-effective international protection.

Conclusion:

In the competitive landscape of technology startups, credibility and value are paramount. Patents serve as tangible proof of innovation, enhancing a startup’s reputation and potential for success. At WarpDriveIP, we believe that a well-crafted patent strategy is not just a legal necessity but a strategic investment that can propel startups towards growth and profitability.

Valuation

At WarpDriveIP, we understand the importance of measuring patent value accurately for informed business decisions. Evaluating patents involves quantitative and qualitative methods, each serving distinct purposes. Here’s how we break down the quantitative assessment of patent value:

Cost Method:

• This approach examines the expenses required to develop and patent a similar invention, whether internally or externally.
• It provides visibility into patent costs within company books and increases patent awareness.
• However, it may not directly correlate development costs with future patent revenue, potentially leading to overspending.

Market Method:

• Market-based methods assess patent value by comparing recent transaction prices in similar IP exchanges.
• They offer a relatively straightforward evaluation process and can validate other valuation approaches.
• Yet, limited formal markets for IP and the scarcity of pricing information make direct comparisons challenging.

Income Method:

• Income-based methods gauge patent value by estimating potential income streams and calculating present value based on anticipated future earnings.
• They offer simplicity and may utilize readily available inputs from financial statements and market data.
• However, they rely on subjective assumptions and estimation of uncertain cash flows and discount rates.

Each method has its advantages and disadvantages, requiring careful consideration based on specific circumstances. It’s crucial to seek legal and professional advice to determine the most suitable approach.

The choice of evaluation method depends on the target audience, such as prospective investors or internal management. While each method has its merits, the income approach tends to be preferred by most companies for its comprehensive assessment of patent value.

At WarpDriveIP, we specialize in guiding companies, including boards, investors and c-suite executives through the patent valuation process, ensuring informed decision-making aligned with business objectives.

Monetization

How to Sell Your Patent with WarpDriveIP: A Strategic Process

At WarpDriveIP, our mission is to empower our clients in maximizing the value of their patent assets through strategic patent prosecution and transactions. With our extensive network within the intellectual property (IP) and technology sectors, we specialize in facilitating patent sales and transactions that yield exceptional results for our clients.

We have streamlined a comprehensive five-step process for all our brokerage sales:

Step 1: Preliminary Evaluation & Valuation

The journey begins with a high-level evaluation and valuation of your patent or portfolio. This initial assessment allows us to gauge its market potential and devise a tailored strategy to unlock its value.

Step 2: Identifying Potential Buyers

Drawing from our network and expertise, we compile a list of potential buyers and licensing candidates for your patent or portfolio. We prioritize prospects based on their relevance and potential interest, ensuring a targeted approach.

Steps 1 and 2 typically culminate in a thorough evaluation and discussion within two to four weeks, depending on the complexity of the portfolio.

Step 3: Crafting a Marketing Strategy

Once we’ve established a path forward, we develop a robust marketing strategy tailored to your objectives. Our team creates compelling sales materials that highlight the unique value propositions of your patent or portfolio, enticing potential buyers.

Step 4: Managing the Transaction

a.) WarpDriveIP orchestrates an active brokering campaign, with dedicated IP transaction principals overseeing every aspect of the process.

b.) We initiate an active marketing campaign by distributing the sales materials to our curated list of prospective buyers. Throughout this phase, we maintain regular communication with both parties, keeping you informed of progress.

c.) Our team leads negotiations, ensuring the best possible outcome for you, including the final sales price and any pertinent terms and conditions.

Step 5: Finalizing Agreements and Generating Revenue

As negotiations conclude, we facilitate the finalization of agreements between you and the buyer. We guide you through the review and approval process, ensuring that all legal aspects are thoroughly addressed.

With WarpDriveIP, selling your patent is not just a transaction; it’s a strategic endeavor aimed at maximizing your returns and leveraging the full potential of your intellectual property assets.

Our clients have utilized the funds from patent sales in many ways, including augmenting GTM efforts or enhancing product development. How will you utilize the extra revenues you will unleash?