By engaging with a longer-term roadmap to patents, taking into consideration a patent is not a one-time event but a long-term asset that needs continuous management, it’s possible to ensure that IP efforts are fully aligned with the wider business strategy and commercial goals.
This foresight is essential because decisions made at the earliest stages of innovation have profound and lasting consequences.
As business objectives evolve with the maturity of the company, it’s important to consider the role IP plays and the strategic actions that should be taken in line with the stage of the business.
Ideation & startup
For businesses in the start-up business stage, potentially being built upon specific IP or a market differentiator, the patent strategy is usually focused on securing foundational IP and attracting investment to help the business grow.
To help position the business and increase the valuation, more focus might be placed on a defensive patent strategy, as per ‘The Shield’ pillar. Key strategic actions during this business stage are likely to include an initial patent filing and securing ‘patent-pending’ status.
Growth & scaling
Moving into the next business stage, portfolio managers will advise on cost-effective global protection strategies so that a business can implement phased international filing, as well as monitoring competitors.
The aim here is to protect the growing market share while also considering global expansion, often utilising the Patent Cooperation Treaty (PCT) route, which enables a company to postpone major IP protection costs for up to 30 months. This provides time to properly scope out international markets, secure the funding needed and align the patent strategy with this approach to growth.
Maturity & new revenue streams
As the business grows and matures, the objectives continue to develop, now with the intention of generating new revenue streams and maximising return on investment (ROI).
At this business stage, it’s more likely that a company will be relying heavily on the four interconnected pillars of patent strategy; carefully balancing the protection of IP with The Shield, creating new value and business growth with The Sword, developing a strong patent portfolio and increasing valuation with The Crown Jewels and using The Bridge to collaborate with strategic partners.
Active portfolio management is particularly important at this stage, and as the IP develops, patent attorneys and portfolio managers might advise to let older patents lapse, as the cost of renewal doesn’t align with the ROI.
Exit strategies - M&A and IPO
In the final business stage, the objective is all about maximising the valuation of the business and ensuring that all IP is documented and defensible.
Although it can be difficult for a start-up or even a newly scaling business to think this far ahead, the patent strategy needs to be planned for the long-term. During this stage of business maturity, patent attorneys will become the ultimate due diligence partners, helping to validate the strength of the portfolio and assisting in valuation discussions.
The ability to clearly articulate the commercial value and strategic importance of the IP is critical to achieving the highest possible exit valuation.
Find out how the long-term patent roadmap aligns with the wider approach to patent strategy in our guide: Transforming patents into business strategy
