Some of the biggest news in the past few years regarding IP and patents hasn’t come from innovation but rather from acquisition of innovation. One of the most-discussed was Facebook’s purchase of WhatsApp, a free messaging app for mobile devices, that closed for $19 billion.
The big question on everyone’s lips was this: Why would Facebook, which has its own robust messaging system and also costs nothing to users, want to purchase a less popular product with fewer bells and whistles? Even now, reports state that Facebook has lost money on the deal, but they’re still pleased as punch with their purchase.
The reason Facebook is cool with dropping that kind of cash on an inferior app is the same reason that Amazon’s found Jeff Bezos is cool with losing money year after year. Sometimes you have to spend a little cash to cement your spot as the top dog. In Facebook’s case, that cash was spent to eradicate a potential competitor—while also benefitting from any technology IP that was also conveyed with the sale, of course. Amazon’s snapping up patents and IP right and left to keep pushing forward with their expansion plans.
What works for the big boys of tech can work for you, too. With strategic acquisitions of intellectual property and existing patents, you can clear the path of competition while also expanding your current patent portfolio—which, of course, leads to an expansion of the products or services that you can offer.
So, how do you do it? The simplest answer is to give us a call and schedule your free 30-minute consultation. If you need a little more information than that, let’s walk through the steps.
1. Determine Offensive and Defensive Strategies
In the two examples above, Facebook and Amazon, the strategies are opposite. Facebook, while benefitting from the IP acquired with the purchase, entered the acquisition phase in a defensive stance, prepared to acquire IP that presented a threat to the company. Amazon, with their growth intentions, moved patent considerations to the front.
A healthy company should have intentions for both—to survive and to grow. Identifying potential products, technology, and other intellectual property that might present risks to your future bottom line is an important step. Without imminent danger, you should still be looking forward. You should establish an on-going process for gathering business intelligence. One-off exercises for both defensive and offensive strategies do little to provide true value or to inform your strategic thinking.
2. Work with an IP Consultant to Identify Targets
At this particular juncture, you do have a choice: You could use software or you could work with a consultant. Before you choose the cheaper option, it’s important to consider what you’ll receive for your money. If Blockbuster had explored possible patents, they may not have spent so much time on design patents for their rental stores, but they still wouldn’t have seen Netflix or Redbox coming. With a consultant, they may have discovered all the patents filed on the specialized media envelopes or the vending machines outfitted for media. They could have explored the whole IP landscape for potential disruption.
3. Qualify IP and Patent Targets
With an idea of the intellectual property you hope to acquire, you can then pursue qualification. This involves answering several questions.
- How novel is the intellectual property?
- How many patents does their intellectual property cite?
- How many patents cite the IP in question?
- How would this IP strengthen your patent portfolio?
- What geographic markets does the patent cover?
- What is the quality of the patent?
- Are other targets more attractive or viable?
- What options exist if a competitor acquires this IP?
Without the answers to these questions, you can’t make an informed and intelligent decision on the acquisition targets. IPVision’s IP analysis is unique among the various patent search and analysis options available to you. With our help, you can find the solutions to all these questions and more.
4. Identify Potential Competitors
If you have your eye on acquisition targets, your competitors may, also. Of course, many companies don’t begin examining the IP landscape until they’re in trouble. Still others never realize they’re in trouble in the first place. You can’t assume that you’re the only company looking forward or building defenses. Start tracking potential predators who may also be following the portfolios you have your eyes on.
5. Leap
You can’t wait too long when making a decision that could severely impact your company’s future. One day is enough time to change the value of your desired patents or intellectual property, depending on emerging technology, new hires within the target company, offers from your competitors, or dozens of other disruptions.
Of course, no decisions are made overnight. Your tracking and analysis should take the appropriate time, as well as the negotiations. But when you’re sure, don’t let anyone else slip through the cracks.
When you’re ready to work with a consultant to guide you through the identification and analysis process, we’re here. Reach out and change your future.
