Framing an effective IP strategy in the Corporate

For a corporation, the value of its IP forms a substantial asset for them and multinational institutions and corporations rely on their IP for garnering major revenues. The corporation innovates various IP and use them for their products or can license them to the third parties, which generate revenues for the corporation in the form of license fees. If we take some current examples, various major technology companies are in the tryst for making software of 5G technologies and making their substantial move in the field. This development will increase the bandwidth of the revenue generation for the company since the future is in 5G. Therefore the corporations are very cautious in their move for creating and protecting intellectual property (IP). For any such valid infringement, the prerogative to sue the other for the intellectual property violation always lies with the corporation. The crucial role that the IP has and the potential impact it can make on the corporation/firm’s revenue shows how important is to have strong and strategic intellectual property management within the firm. The business model and plan must deliver this strategic management with utmost precision.

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Strategy and Management of IP

From the management perspective, the strategy will pertain to the fact of creating a set course of action to achieve a set of goals. In other words, it’s planning for the future, governing the present action. The planning that is made in advance purposefully for structuring the present action. In the corporation, this strategy, as specified, will be for the growth and for increasing the revenue of the corporation. But for this, specifically in the management perspective, the strategy doesn’t come from a single course of action. Hence, it increases the bandwidth under which we understand the speculation for a strategy. Therefore, for a strategy to be successful, it is pertinent to not only rely upon a single course of action but should rely upon a continuous course of action. This frames an important part since this continuous course of action must be effectively decided and a specific pattern must be followed concerning the strategy. Here, an important point to note is the consistency that has to be followed. If a strategy maintains demands multiple courses of action, then it is of the utmost priority that such multiple actions must be consistent.

The decision for an effective strategy in compliance with the consistency in the multiple courses of action can be intended. Intended in the sense that the corporation intends to achieve a figure or a certain goal in the prescribed period. Or the other hand, such a decision might also be unintended, in the sense that it might not be intended by the firm but still forms an important part of strategies. These strategies form an intrinsic part of the organization and bind the workforce for a particular aim. The shared aim coupled with the intention of the members of the organization is driven by the stronger commitment towards the strategies in force. Not only to drive the profitability of the organization, but the strategy also pertains to the effective response of the organization for outer competition. The corporation always demands long-term profitability. For deriving long-term profit, it is necessary to have strategic actions against response to market competition. The unintended decision which the author was talking about also includes the strategic response to the market competition.

Valuation of IP

More often, various industries do not value their IP as they prioritize other sectors. With more advent of technology, there has been a huge change in the perspectives. The considerations related to IP have been increasing where more and more companies and top-level managers are at the forefront for extracting the value of IP. The cautious approach in managing IP has made the corporations realized to have a stronger targeted IP management. For ensuring the targeted management of IPR, the firm should ensure the development of potential IP so that its portfolio management should be strategically targeted towards its profitability. So an important point that can be inferred here is to ensure a stronger development of IP which must ensure that the business achieves its intended results. Therefore, the development of such an IP must align with the strategy that is aligned with the business management. Hence, a close connection between the business and strategizing IP is visible to us. Hence, as we have previously discussed that the strategy must be made keeping in mind the course of action; similarly the IP strategy must be made in consonance with that course of action. Because case, if that strategy of effectively evaluating IP does not align with that of the systematic course of action, it might not be able to contribute to achieving the desired result. All the factors that we inferred will play a tremendous role in this strategizing. It will be imperative for the firm to understand that the first step for initiating the strategy will be the knowledge of using the IPR for gaining a competitive advantage in the market. This is important because this effective use of IPR sustains the market value, thereby, increasing the market capitalization of the firm. It must also be noticed that IPR affects the industry structure, where it affects the entry and exit barrier of perspective inventions. This establishment of such an entry and exit barrier connotes that effective usage helps the firm to gain power in the market and the position concerning the demand and supply chain. Preferably, without any strategic evaluation, the firm might end up losing the power that it exercises through the creation of an effective entry and exit barrier. Through all these explanations, the author wants to specify how important the structuring of IP is for the firm’s organizational design and the putting the strategic course of action.

Author: Saransh Chaturvedi an associate at IP & Legal Filings, in case of any queries please contact/write back to us at support@ipandlegalfilings.com.