Are You Accounting for IP—or Making It Work?
We quantify headcount, revenue, market share, and margin in quarterly reviews. We report customer wins and churn. Yet, in most boardrooms, one of a company's most valuable assets—IP as a business asset—gets barely a line item.
Not because it lacks value. On the contrary, IP is often the most commercially potent asset in books. But in too many companies, it's still managed like legal hygiene—segmented from growth planning, overlooked in M&A scenarios, and not embedded in the sales narrative.
This approach is no longer a knowledge gap—it's a leadership problem.
The Opportunity: Reposition IP from Protection to Power
Imagine if your patents, trade secrets, or trademarks could do more than just be protected. What if they could be the driving force behind your business, influencing dealmaking, partner strategy, pricing, and investor narratives? This is the power of IP when it's not just a cost center but a performance engine.
The companies that make that leap? They're not just "IP-aware." They're IP-native in how they build, buy, and scale.
The Strategic Use of IP as a Business Asset: It's Not New—but It's Rarely Done Well
We're well past the stage where IP is an abstract concept. Global patent filings have surged over the past decade, and almost every sector—from semiconductors to pharma—is saturated with rights. But more IP doesn't mean more value.
What sets IP leaders apart from mere accumulators is their strategic intent. They don't just amass patents and trademarks- they have a clear strategy and take decisive action to leverage their IP for maximum value.
Case in Point: Philips' Patent Factory
Philips is not the only company that has successfully monetized its IP. Companies like IBM, Qualcomm, and Microsoft have also built successful business models around their IP, generating significant revenue through licensing and other IP-related activities.
Over 50% of Philips' patent portfolio in LED is licensed to competitors or partners.
That takes confidence. But more importantly, it takes maturity to view IP as a revenue stream, not just a wall to guard the castle.
From Filing to Fundraising: IP as a Trust Signal
When VCs or acquirers evaluate your company, the pitch deck slide that says "Patents Pending" isn't impressive unless the patents have real teeth.
What matters is this:
- Are they in high-value jurisdictions?
- Do they cover core differentiators?
- Are they blocking competitors or creating licensing options?
In startup ecosystems, the math is brutal:
📌 Startups with patents and trademarks are 10 times more successful in securing funding, according to a study published by the EPO and the EUIPO in 2023.
📌 IP-backed startups enjoy higher exit multiples—but only when those assets are articulated as part of the business model.
Simply having a collection of IPs isn't enough in today's market. Investors expect a comprehensive IP strategy, not just a legal team. Your business is responsible for taking a proactive approach to IP management.
Licensing: Passive or Proactive?
Most large companies could be licensing their IP. Very few are doing it systematically.
Ericsson, InterDigital, Dolby, and Qualcomm aren't just collecting royalties but shaping market standards. They write the rules and charge rent to play.
But even in mid-market B2B businesses, there's hidden potential:
- Could a component patent be licensed into adjacent industries?
- Could a method patent unlock value in non-core regions?
- Could IP sharing accelerate a stalled partnership?
These aren't legal questions. They're growth questions.
Executive Takeaways: Shifting the IP Conversation
Let's end the passive mindset. Here's what a progressive, business-integrated IP approach looks like:
✅ IP as part of go-to-market strategy – Can your IP justify pricing premiums or exclusivity?
✅ Portfolio scoring tied to business impact – Not just patent count, but relevance, enforceability, and commercial potential.
✅ Cross-functional IP steering committee – Legal, product, M&A, and commercial heads at the table.
✅ Clear monetization scenarios – Licensing models, cross-licensing swaps, carve-outs, or spin-offs.
✅ Investor messaging – Make IP a feature of valuation, not a footnote.
Final Thought: The real question isn't "Do You Have IP?" It's "Is It Working for You?"
I can be a defense. However, the winning companies use it as leverage, currency, and a signal.
This approach is no longer optional. The markets are saturated with innovation. What's scarce is differentiation with teeth—and monetization with discipline.
Our next piece will explore how companies build ecosystems through IP, not just defensible positions but collaborative dominance.
