Saptaswara Chakraborty| North Eastern Hill University| 27th June 2020
Meaning and Scope of a Patent Portfolio
A patent portfolio may be defined as a collection of patents owned by a single entity, e.g., an individual or a corporation. In the patent portfolio theory, an important feature that makes it stand out is “relatedness”. The patent portfolio is more narrowly focussed on a particular technological field. The reason for it being “relatable” is because the broadly diversified stock portfolios are well suited for the holder that lack detailed information about any individual industry or technology. However, in the case of patent portfolios, they are held by knowledge of the industry and the technologies. Relatedness helps the patent portfolios to be a part of the specified spectrum but with a diverse approach. The efficient and effective way of making a patent powerful is through its ability to leverage the differences collected from the patents. Several successful high technology companies recognize that a comprehensive intellectual property portfolio can be of substantial value. A patent is a significant part of the intellectual property portfolio which means that it is a right granted by the government that allows the one having the patent or the patent holder to exclude the others from selling, making, distributing, etc. anything whose patent has already been claimed. The very need for such patient protection is that patents are necessary to solve by problems that would otherwise plague the production of innovation of products and processes. The scope of a patent portfolio is immense as many companies do recognize that a well-crafted patent portfolio may be used for a variety of business objectives such as bolstering the market position, protecting the research and its development, generating revenue and many more.
The Patent Portfolio Audits
Patent information can act as a treasure for the functioning of business intelligence. However, the challenges instead arise during the process of organizing and interpreting that information so that it can be used for the working of the technology. Patent portfolio audits are very much crucial for a business that has even a small patent portfolio. It is very similar to a financial audit as to how a financial audit can provide a strategic understanding of business finance, such a patent portfolio audit can significantly add insights to the strategic development of the intellectual property. It also can enable its business ability to differentiate itself in its focussed market, which can also have a meaningful impact on its financial growth prospects. A patent portfolio typically is a process by which a business reviews the condition of its patents granted, licenced patents and the pending patent applications. This also acts as a tool to review the policies and strategies for effective patent portfolio management. The basic or the initial step of such an audit is to focus on a complete listing of the general information related to patents filed and owned by the business. However, the most essential feature and the most effective way of maximizing the value of the patent and the patent portfolio audit is through an additional business-oriented method. A patent portfolio audit which is designed to provide insights and to produce results that provide actionable insights for business fundamentals and is growing.
Objectives of a Patent Portfolio Audit
While starting with the patent portfolio audit, it is essential to have unique goals for the portfolio audit. In general, there are four goals that a patent portfolio audit requires to achieve. They are streamlining portfolios, ensuring portfolios are well-positioned portfolios for optimal monetization and that ensuring the portfolio provides coverage. Similarly, a much sought after objective of a patent portfolio audit is to align with the business strategy. To achieve this, there is a requirement of a higher level of detail, and often it includes an additional research initiative. The determination of how well the patent strategy aligns with the corporate strategy. Specific patents protect the identification of the products patented and the unique features of those products and services
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The functioning of a patent portfolio audit
Following are some of the general process that provides a framework for the functioning of a patent portfolio audit:
- Firstly, the patent portfolio audit recognizes the need and buys-in from the stakeholders, executives, in-house legal counsel, outside legal counsel and the merger and acquisition team, product management, marketing manager, etc. After getting a buy-in, patent portfolio audit may be executed regularly as part of the proactive management or through an event being prompted, or even by introducing a new product, entering a new geographic arena
- The patent portfolio audit also has to garner the interests of the various stakeholders and how those interests can be addressed
- By establishing specific objectives of the audit to the stakeholders
- The patent portfolio audit develops a detailed and customized execution
- Reviewing the plans for patent portfolio management and periodic audits.
Remarks
A patent portfolio audit enables effective maintenance in serving the needs of the business. It realigns the asset with the shifting organizational requirements. It ensures for optimal performance and also allows the establishment of adequate maintenance.
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