Sensex wary investors may soon have a new asset class to augment their financial returns.
The concept of trading in IPRs and leveraging arbitrage opportunities is fast gaining ground in India.
IP can create value including cash in a number of ways.It, can be bought, sold, licensed ,contributed as capital in a joint venture,offered to enter in to a strategic alliance,can be integrated with a new business or applied to create a new one,and as much used as a collateral when it is mortgaged or pledged.
‘Ocean Tomo’ the Chicago based Patent Trading firm has mooted the proposal of setting up a separate exchange for IPRS in India, an IPR bazaar of sorts where ‘buy and sell’ orders for IPRS are facilitated.
An IP exchange could provide an added fillip to the innovation ecosystem.Allowing companies to convert technology in to an independent revenue stream through this mode opens up a plethora of funding opportunities as well especially so for SME’s and grassroot innovators.
Through this all, valuation of IP remains somewhat of a black art with various models floating around.Two common factors seem to be included in most of these, namely marketability and the IP generation potential.With the burgeoning IP market,experts specializing in Patent Analytics could be much in demand.
CPA, the world’s top intellectual property (IP) management specialist and the leading provider of outsourced legal support services, in conjunction with Ocean Tomo, hosted India’s first ever “Live Intellectual Property Auction – Asian Simulcast and Symposium” in Bangalore, recently.
Nearly 65 lots of IP assets were offered for sale in 20 categories including smart cards, manufacturing and automation, online and mobile commerce, lighting technology, telemedicine, computer systems and software, digital media systems, domain names, security and authentication systems, messaging and electronics and handheld devices. Total sales for the live auction conducted in Amsterdam came to USD $12.6 Million (INR 544 Crore), including buyers premium.
With the IP market and transactions getting more sophisticated, business organisations are sure heading for a paradigm shift in realigning their IP assets with their growth strategy.