Patents reach trillion-dollar tipping point
17th September 2014
Patents reach trillion-dollar tipping point
- Major corporates, accountants and banks call for data transparency to maximise the value and minimise the risk associated with intellectual property in an industry-wide report launched today
- AISTEMOS launches CIPHER, the world’s first intellectual property analytics tool for the business community – built on input from more than sixty leading organisations worldwide
LONDON, 18 September: AISTEMOS, a London-based IP business intelligence and strategy company, has today released The trillion dollar tipping point: Exploiting the untapped value in patents, a report assessing the barriers and solutions to the monetisation of the intellectual property assets which now account for up to 70% of enterprise value.
This report is backed by organisations such as ARM, EY, Deutsche Bank, UK IPO and Allied Security Trust. It identifies a range of trends that strongly suggest that the development of patents as a functioning asset class has reached a critical phase, including:
- The exponential rise in patent applications, grants and licensing over the past ten years
- The surge in IP litigation and the emergence of ‘patent trolls’ represents a move towards rational pricing
- Financial markets now recognise the substantial value associated with intellectual property, and patents specifically
- Intellectual property strategy is a boardroom issue, as both a key risk and value driver
- The banking community still requires education and support to start lending to SMEs secured on innovation and patents
- The US is developing new business models faster than Europe, and the time for the business community to engage is now.
Nigel Swycher, CEO at AISTEMOS, said: “We are fast approaching a tipping point in the evolution of intellectual property. Over the next few years, we will either see the emergence of rational markets for patent trading, which have the potential to deliver trillions of dollars in value, or an opportunity lost as markets fail to engage effectively.”
“If this opportunity is to be realised, patent owners, lenders and insurers must have immediate access to trusted business intelligence relating to patents as the basis for rational decision making, pricing and intellectual property trading.”
The report, featuring comment from Tony Clayton, chief economist at UK IPO and Kelvin King, a co-author of the UK IPO’s Banking on IP? report, points to a lack of accessible data on patent value and risk as a major barrier to the effective monetisation of IP.
Scott Bell, Head of UK Investment Banking at Deutsche Bank, commented: “Without data about value and risk, including fundamentals such as ownership, strategy and information to support comparisons, it is hard to see how a functional and active market can be developed; and while data is not the only ingredient, the demand for data and analytics to facilitate a better understanding must be met and is an essential starting point.”
CIPHER: The big data solution
Over 60 organisations, including BAE Systems, Marks & Clerk, GE, PwC and Slaughter and May, joined a pilot group to collaborate with AISTEMOS on the development of CIPHER, the first business intelligence product to aggregate, analyse and visualise data relating to patents and related events including litigation and licensing.
CIPHER aggregates, analyses and visualises an unprecedented wealth of patent data, licensed from Thomson Reuters, Lex Machina, Patent Freedom, ktMINE, 1790 Analytics and Relecura. It employs leading-edge data science to search across 30 million patent families and all the world’s patent-owning organisations in real time – to deliver actionable insight for the wider business community.
Swycher said: “We believe CIPHER has the potential to change the way intellectual property is understood and exploited, so that all organisations can participate and realise the enormous value of IP, by making better decisions, creating new opportunities and managing risk.
“Ultimately, by providing access to trusted and comprehensive data, CIPHER can play an important role in helping to create a new marketplace for patents – a marketplace valued at many trillions of dollars – and which could help to drive economic growth by providing SMEs access to vital finance.”
Philip David, General Counsel at ARM Ltd pointed out the vital role that access to reliable data can play in the development of patents as a functioning asset class:
“The monetisation of IP is not about creating new value. It is about eliminating transactional inefficiency and realising and reapportioning value that is already there, by establishing highly liquid, rational markets in which greater transparency of patent data ensures that transactions are shaped by the intrinsic worth of IP assets”.
CIPHER is the world’s first business intelligence product to aggregate, analyse and visualise IP data (relating to patents and related events including litigation and licensing) for the wider business community. It provides answers to questions that previously were just too complex, time consuming or costly to ask – for the first time, business strategy, development or planning decisions can be made based upon real, actionable IP insight.
Pilot Group members include ARM, Ashurst LLP, BAE Systems, BDO, CFC Underwriting, Deutsche Bank, DFJ Esprit, DHL Deutsche Post, EY, Freshfields Bruckhaus Deringer, GCA Savvian, GE, GP Bullhound, Grant Thornton, IP Group, Latham & Watkins LLP, Marks & Clerk, Monitise, Novagraaf, Olswang LLP, PA Consulting, PwC, QinetiQ, Reddie & Grose LLP, Rouse Legal, Shazam, and Slaughter and May.
For more detail on CIPHER, request a demonstration.
AISTEMOS changes the way intellectual property is understood and exploited, so that organisations can make better decisions, create new opportunities and manage risk. CIPHER is the first IP business intelligence product to aggregate, analyse and visualise data relating to patents and related events for the benefit of the wider business community. AISTEMOS was founded in 2013 and is based in London, UK. For more information, go to www.aistemos.com.
For further information, contact:
T: +44 (0)7974 161123