How can intellectual property (IP) make your company more valuable? There are several examples of world-leading companies that have successfully increased their value by strategically working with IP. In this article, we provide examples of how Pfizer, LEGO, Apple, and Nike have done just that. We hope to inspire you to embark on a similar journey.

Identify and control your assets
– it makes a bigger difference than you think!

A well-thought-out business strategy enables your company to nurture creativity, drive innovation, and build a foundation for long-term success. But did you know that the path to success begins with recognizing the power of your IP?

Identifying and ensuring control over your intellectual assets is a fundamental step toward leveraging your company’s innovations, ideas, and creations for business. Whether it’s patents, trademarks, contracts, or trade secrets, the value of IP cannot be underestimated. By securing your IP assets, you not only protect your unique contributions from infringement but also gain a competitive advantage in the market and the opportunity to do business with them. Therefore, experts recommend that all companies conduct an analysis to identify the most important strategic assets for the business.
A similar journey was made in 1999 when the pharmaceutical company Pfizer patented the drug Viagra. This was a groundbreaking medication for erectile dysfunction. Since then, Viagra’s exclusivity in the market has led to Pfizer’s tremendous success, with the drug generating billions of dollars in revenue annually. All thanks to thoughtful patenting.

IP Strategy
– a thoughtful connection to the business plan

A robust and smart IP strategy is crucial for all forward-thinking organizations. But what is an IP strategy? An IP strategy is a carefully crafted plan that aligns the management of your IP with your business goals. It may involve registering rights only in markets relevant to the business, being vigilant against potential infringements, and ensuring that IP is an integral part of all types of agreements. IP should be present in all strategic decisions.

Developing an IP strategy can be challenging, so it is important to seek expert help. Experts can assist you in conducting a comprehensive analysis of the company to identify your intellectual assets and then prioritize with you which ones are most crucial for your business and long-term growth.
The LEGO Group, known for its iconic interlocking bricks, effectively used its IP strategy to become one of the world’s most valuable toy manufacturers. By aggressively protecting its patented brick design and distinctive trademarks, LEGO could prevent competitors from copying its successful product. This IP management not only secured their market position but also enabled them to explore licensing opportunities and strengthen the brand’s global reach and profitability.

Explore licensing and partnerships
– generate additional revenue streams

Exploring licensing and partnerships is a strategic approach that can unlock a multitude of opportunities for companies and create significant value from their IP.

Licensing

Licensing involves granting permission for someone to use IP (such as patents, trademarks, software) in exchange for something; specific terms or a fee, for example. By licensing IP to others, one can generate additional revenue streams without investing capital. Licensing agreements can enable a broader reach of IP to new markets or industries, reach a wider audience, and hopefully maximize the commercial potential of what has been licensed.

Partnerships

Partnerships are arrangements where two or more individuals or entities collaborate and share results and responsibilities. Strategic partnerships can allow companies to leverage each other’s assets, combining strengths and resources to create innovative products or services. It is especially important that IP is included in the collaboration agreement.

Embracing licensing and partnerships as part of an IP-driven strategy allows companies to benefit from their innovations, expand their business, and ultimately thrive in a global market.

The collaboration between Apple and Nike when they joined forces in 2006 to create the Nike+ iPod Sport Kit is a perfect example of a partnership. They integrated Nike’s knowledge of running with Apple’s iPod. This partnership allowed runners to track their workouts and sync data with their iPods, enhancing both companies’ offerings and expanding their customer bases.