Forget patents and focus on communicating value

Duncan,

What an astute comment about Change Management being the guide for  "intellectual property evangelists" communication efforts.  And, I agree that one must "forget about the patents and focus on value."  After many years of diligently obtaining patents (at great value to myself, but necessarily for my clients in the end), I have totally changed my view of the IP world and. along with you and others, I am working hard to elevate the conversation as an "intellectual property evangelist". 

This conversation has as a central premise is what matters for clients is not the legal end product (patent, trademark, etc), but how IP creates and drives value within a company. 

Unfortunately, relatively few IP counselors can demonstrate THEIR OWN value without showing a tangible result, for example, # of issuances or cost to the organization.  Moreover, at least in the States, IP counselors obtain the vast majority of their compensation from hourly billing.  One cannot generate significant income for oneself by saying "no, you don't need a patent etc" when one gets paid by the billable unit. 

So, to circle back around to the entry point of this blog post, more broadly than change management, I believe that IP evangelists must recognize that change is unlikely to happen if we talk to IP counselors about the need to "forget the patents and communicate value" because many  IP counselors likely do not have the incentives and, perhaps, skill set to refocus their efforts.  Rather, we need to develop and deploy opportunities to speak to BUSINESS decision makers and drive change from that direction. 

Only when the clients require their IP counselors to demonstrate the value of their services to driving and maximizing corporate value will change be likely to broadly happen. 

Thanks Jackie - this goes way beyond IP Counsellors of course.  They are a very small part of the overall picture.

I fully agree with Duncan and I would widen the need of good IP communication even further. From my own experience as a strategy and communications consultant in the 'Battle of the Software Patents' in Europe (2004 - 2006 and possibly 'to be continued'),  I know how important communication is to convince politicians and NGO's of your viewpoints. Many leaders in the IP business are highly intelligent lawyer-cum-nerds, but politicians, NGO's and society at large don't buy your arguments just like that. Convincing them requires a conscious effort of trying to understand their motives, their logic, their language. People like Bruce Berman are  well aware of this need and it is indeed very encouraging that the IP community is now starting to see the light.

I totally agree with your post about the importance of IP communications -- and not just because I’m an IP communications consultant myself.

While Jackie Hutter is certainly correct that metrics for IP value are often hard to come by, it would be possible for IP-holding firms to issue, for example, a narrative annual report to shareholders and investors on the impact their IP efforts have upon corporate performance. Where have cross-licensing and IP collaborations deals enabled the company to enter new markets or jointly collaborate on new product development? How has IP enabled the firm to be more successful in the marketplace, in terms of increased market share or margins? What new business opportunities are being enabled by the company’s IP strategy?

All of the above, while certainly not as quantifiable as licensing income, does nonetheless indicate tangible business value that shareholders, investors, boards, partners and even the general public should be made aware of.

IP communications also has value in the policy arena. With anti-IP forces gaining greater and greater influence among policy makers and the general public, it’s becoming increasingly important for firms to engage in  the public debate over whether IP really does stimulate innovation and economic growth for all of society, or simply the profits of Big Business as IP opponents claim? Corporate leaders have traditionally avoided policy controversies, but in a time when regulators around the world are making decisions and taking actions that materially impact companies in whole industries, companies can no longer afford the luxury of sitting out the debate over IP policy questions.

How many firms have dedicated IP communications functions? Not very many, unfortunately. This has to change.

These are all great comments - thanks everyone for your thoughts.
So what is the next, practical step to take ot move things in the right direction?

Duncan,

I enjoyed meeting you in Chicago at the IP Business Congress, and I completely agree with your comments here.  I also thoroughly enjoyed listening to David Kline and Marshall Phelps, and I wrote a book review regarding Burning the Ships at http://AwakenIP.com, pointing out that they also understand the concepts you mentioned above.

Since my blog is very new, I would certainly welcome any thoughtful comments, especially since it doesn't have any yet.

Thanks again.

jk

Hi Duncan,

Great post, as we told you before by twitter!

Big part of the problem resides on the communication issue, because, the big majority of the CEOs and other company responsibles, still live in the though, in the view, that the tangible is the only source of wealth.

They know what is the intangible, they know the conceptualisation, but, they don't fully reach the value and profitability issue surrounding it, because, they know that a trademark, a patent, a piece of design or copyrighted work, has value, but, they see it only in their materialisation.

So, we, that do this IP strategic management work, must be ready to know to, and how to, communicate, and answer that Jerry Maguire's question: where is the money.

When we are able to show them that the money is in the Value, in the Intangible, we have achieved a big part of our job, and, like you say, "Communicating value sounds easy, doesn't it?  It's not.".

Once again, great post :)

Stimulating Post.
Taking up a parallel, can IP communications be related to the Intellectual Capital representation in the balance sheets? Can that give clues for the relationship between PR and Chief IP Officer?

Companies have to come out of the closet on their IP licensing information - open you are, more the perceived value.

Regards
mukundan

Dear IP friends,
allow me a Euro-centric contribution to this US-centric debate on IP and IP awareness or strategic relevance within Corpns and institutions.
All the ideas submitted are good and useful but perhaps a more radical approach is needed to obtain full and ready ascendance to Boardroom, Ministry etc. VIP treatment and consequent value strategy.
Here in Europe the objections to IP are centerd on ... IP, whereas as soon as one talks about Innovation, R&D, TechTransfer, Technology etc. (NB. all children or cousins of  IP) all doors open !
That is because IP is perceived as a legally-dominated strategy, predominantly pursued by scientists ... i.e. lead by hardly 2 key categories  for a Company or public Body.
Europe is wholly committed to technological innovation through patenting etc. but hates any strategy based on litigation, enforcement, legal exploitation at the expense of industrial exploitation ...
In the BIllions poured by the EU over Innovation and technology none is granted for legal IP ! All is for Industrail and Competitition-linked IP, including patenting !
Now, you may or may not agree with this but you cannot deny that Corporate or Institutional strategies are more concerned with the creation of actual economic value from innovation and technology (thorugh industrial, commercial or financial developments), rather than unpredictable value from complex, multi-year, legal strategies ...
I hope IAM magazine and others will focus on this to me healthier European approach, which is likely to lead to a less volatile, more fundamental IP sector intrinsically liked to Corporate strategy at the very top level ... and long-term so !!
I have not even touched upon the perception by the media, where everything I wrote is even more true ...
Best,
Giancarlo, MgoodIDEA, Rome.