Market

Israel: A goldmine of untapped IP potential

Israel has long been recognized as a powerhouse of technological discovery and invention. Where larger Western nations can exploit their natural resources or industrial production capabilities as a means of driving economic performance, Israel exports its ideas and intellectual property to a world hungry for innovation.

A disproportionate number of these inventions are the registered patents of individuals and small to medium-sized companies. Indeed, Israel is truly unique on the international IP landscape for both the quality and quantity of its U.S. registered hi-tech patents owned by private held companies and independent inventors.

In most Western countries, patents with any real value are typically grabbed early by IP real estate tycoons of big corporations, leaving very little in private hands. In Israel, with its strong entrepreneurial ethos, the majority of hi-tech related patents are still held by individuals or small companies. The opportunity to transform these patents into sellable real estate to an eager global market is here and now.

Multinational technology companies are eager to enhance and diversify their IP asset portfolios with the type of quality patents generated by Israeli companies and inventors on an ongoing basis. Owning relevant patents can often tip the balance in their favor, in terms of improving their actual market position or influencing their negotiating power in licensing agreements and litigation.

Professional patent monetization services: Understanding the need

There is a growing consensus that patents as property are integral to the long-term strategic growth of an enterprise; the richer and more diverse a portfolio, the greater the chance to dominate a market space, avoid litigation and/or reach amicable cross-licensing agreements with competitors. Patents in today’s world have thus become leverage points to opportunity.

Billions of US$ per annum are spent in the U.S. alone by large hi-tech corporations seeking to enhance their strategic IP positioning vis-à-vis their competitors. To that end, they buy huge volumes of patents, typically sold in blocks, for low prices. Patent holders – individuals and privately-held companies – who may have true gold in their hands are subsequently not adequately compensated for their inventions.

The simple reality is that these sales are made in such large quantities that it is impossible to properly analyze and assess the inherent value of these patents in real time or consider what strategic value they may hold to a prospective buyer for the long term. Moreover, the brokers that usually handle these transactions have no professional experience and are looking to move properties quickly and efficiently for a set fee, without considering the consequences to the seller.

The need for a professional patent monetization service is clear; only firms with proficient legal, technological and analytical skills in positioning patents on the global stage can serve the best interests of their patent owner clients, ethically and responsibly.