Patents Emerging as New Asset Class
As a London-based IP business intelligence company releases the world’s first intellectual property analytics tool for the business community, major corporates, accountants and banks call for intellectual property data transparency.
The development of patents as a functioning asset class has reached a critical phase according to a report from AISTEMOS, which is backed by organisations including ARM, EY, Deutsche Bank, UK IPO and Allied Security Trust. The trillion dollar tipping point: Exploiting the untapped value in patents claims that businesses are failing to exploit the full value of intellectual property assets, which now account for up to 70% of enterprise value.
Barriers to Patent Trading Markets
Accompanied by an infographic, the report warns that the establishment of rational markets for patent trading is being held back by a lack of data transparency around patent ownership, value and risk. Nigel Swycher, CEO at AISTEMOS, comments: “We are fast approaching a tipping point in the evolution of intellectual property. Over the next few years, we will either see the emergence of rational markets for patent trading, which have the potential to deliver trillions of dollars in value, or an opportunity lost as markets fail to engage effectively.”
The report points out that financial markets now recognise the substantial value associated with intellectual property, and patents specifically, but argues that the banking community still requires education and support if it is to start lending secured on innovation and patents.
Scott Bell, Head of UK Investment Banking at Deutsche Bank, backs that view, saying, “Without data about value and risk, including fundamentals such as ownership, strategy and information to support comparisons, it is hard to see how a functional and active market can be developed; and while data is not the only ingredient, the demand for data and analytics to facilitate a better understanding must be met and is an essential starting point.”
Big Data’s Role in Patent Valuation
A big data solution?
The publication of the report coincides with the launch of CIPHER, the first business intelligence product to aggregate, analyse and visualise data relating to patents and related events including litigation and licensing.
CIPHER: A New Analytics Solution
Developed in collaboration with over 60 organisations, including BAE Systems, Marks & Clerk, GE, PwC and Slaughter and May, CIPHER employs leading-edge data science to search across 30 million patent families and all the world’s patent-owning organisations in real time – to deliver actionable insight for the wider business community.
Swycher is bullish about the product’s potential. “Ultimately, by providing access to trusted and comprehensive data, CIPHER can play an important role in helping to create a new marketplace for patents – a marketplace valued at many trillions of dollars – and which could help to drive economic growth by providing SMEs access to vital finance,” he said.
