 | IP Management – IP Audit Fact Sheet | |  |
Listed are a number of Facts concerning company value and reasons why an IP Audit should be made.
In the US nearly 40% of the market value of the average company is absent from the balance sheet.
In the EU more than half of all large companies leave IP outside the scope of internal audits.
in 1993 IBM made US$1 Billion from licensing non-core technologies which would otherwise not have been used
In the EU the average value of a patent is worth 500,000 Euros.
In Europe 36% of patents are not used.
Honeywell International uses a separate company Honeywell Intellectual Prperties Inc, to manage it’s IP portfolio. Recently, it licensed its LCD technology to competitors such as Sanyo, LGC, Philips, and Chungwa Picture Tubes Honeywell, in 2000, received a then record award of damages of US$127million from Minolta for technology it hadn’t itself commercialized2% of Patents are used as the basis to form a new company.
In 2002, Korea exported technology worth US$0.6 Billion and imported technology worth US$2.7 Billion through licensing, R & D sharing and Joint Ventures.
Since 2002, Korea has increased its R&D expenditure from 2.6% of GDP in 1998 to ~3.4% in 2004.
In New Zealand SME’s account for 37.3% of GDP and have the highest profits per employee, but most SME’s are unaware of the value of their IP or the fact that there is a good chance that it is being infringed.
the Coca-cola brand is estimated to be worth US$80 billion.
US company Texas Instruments earns more from licensing its unused Patent rights than from its products.
US companies have a fiduciary responsibility to manage IP rights and to report actual company value rather than just book value under the Securities Exchange Act 1934
in an EU survey 28% of companies had no provision for IP ownership in their standard Employment Contract.
50% of EU companies have no strategy for managing their IP rights beyond mere filing or renewal payments.
Next – A Practical Guide to an IP Management