Recognizing value from the intangible
IP is a foundational business asset that drives the majority of enterprise value today. Compared to tangible business assets, however, generating enterprise value from IP can present a variety of challenges based upon its form of legal protection and intended use. Plus, the vast majority of IP departments lack connectivity with business decision makers. They treat IP as a purely legal exercise, leaving them unable to link IP to how the company drives revenue.
Recognizing IP as an asset opens up a universe of sophisticated portfolio management techniques that allow companies to make better decisions about IP, extract value from IP, minimize risk, and position the IP department as a strategic partner to the firm, not just a cost center. IP departments should ensure existing intangible assets are protected; optimize the IP portfolio to generate the highest return for a targeted level of risk; and align the IP portfolio with current and future business needs.
- What's at risk
- Changing the perspective
- KPMG can help
What's at risk
- Strategic risk: Critical IP that drives business value is unprotected and in danger of being lost or shared with competitors.
- Lost value: Valuable intellectual assets with significant revenue potential go unrecognized, unprotected, and uncommercialized.
- Wasted resources: IP is expensive to obtain and maintain. Return on IP assets plummets when the scope and cost of protection is mismatched with actual commercial activity.
Changing the perspective
How do companies create a model for IP management that embraces the critical role of IP as a business asset? Consider:
- Connecting corporate and IP strategies
- Managing across the IP lifecycle
- Thinking like a risk manager
- Ramping up data, analytics, and technology
KPMG can help
The KPMG IP Consulting practice helps companies take a strategic approach to IP management, focusing on IP as a business asset instead of only a legal right. We advise companies on the infrastructure, processes, and capabilities necessary to recognize, develop, secure, and manage IP in a way that delivers organizational and strategic value.