Survey shows companies consider intellectual property crucial in a downturn yet are failing to capitalise on it
17 November 2008
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In a survey of companies based in France, Germany and the UK,
published today by leading European law firm Field Fisher
Waterhouse LLP, 79% believe that intellectual property (IP) is even
more important in the current downturn.
Two thirds of companies questioned were planning for growth
abroad in the next three years and 68% agreed IP was vital for
growth, particularly with the current economic climate making
growth through capital intensive methods more difficult. Over half
agreed that IP, which includes registered rights, trade secrets and
know-how, is likely to increase in value over the next three
years.
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Two thirds of companies questioned were
planning for growth abroad in the next three years and 68% agreed
IP was vital for growth, particularly with the current economic
climate making growth through capital intensive methods more
difficult. Over half agreed that IP, which includes registered
rights, trade secrets and know-how, is likely to increase in value
over the next three years.
Despite the consensus on the importance of IP,
the survey found that 78% of companies are failing to manage it
effectively. Under half of all companies have carried out an audit
of the IP they own and only 52% have an up to date plan for these
assets.
Neil Foster,
Corporate Partner at Field Fisher Waterhouse commented:
“As the downturn deepens the possibilities for
expansion through expensive conventional methods are clearly
decreasing. What this research demonstrates is that IP
becomes even more important at times like this, when a
squeeze on capital makes it difficult for companies to grow through
acquisitions or by establishing subsidiaries. However, if companies
review the IP they own and come up with an effective plan of action
for its exploitation they can still expand internationally by
leveraging that IP. By increasing understanding of IP within
the business, companies can explore the full range of techniques
available to maximise the potential of these assets, such as
licensing, franchising, merchandising, co-marketing and
joint-venturing.”
The survey uncovered the major challenges
faced by companies looking to exploit IP, with lack of planning and
expertise as well as a fear of regulatory complexity being among
the perceived barriers.
61% cite a general lack of expertise in the
management of IP as a barrier to leveraging full value,
highlighting a potential knowledge gap between the employees
responsible for them and the rest of the business. Companies
were also found to have a defensive attitude towards managing their
IP, opting for a protectionist strategy focusing on safeguarding
existing revenue streams rather than seeking out and developing new
ones.
73% see regulatory complexity as a barrier to
exploiting IP. Linked to this were fears about high filing and
protection costs, with 68% seeing this as a barrier.
Companies tended to be more comfortable with traditional
approaches to expansion such as subsidiaries and joint ventures,
shying away from other methods such as licensing and franchising
which can be far more cost effective and involve less risk.
Mark Holah,
Intellectual Property Partner at Field Fisher Waterhouse said:
“For those companies that
are planning to grow revenues internationally, our research shows
that IP offers them a great opportunity for growth without
major capital expenditure in real estate and hiring people
locally. Despite this, the vast majority feel that they are
struggling to exploit these assets, seeing it as too difficult and
complex. Many companies prefer to play safe and focus on the
protection of revenue streams, rather than seeing IP as an asset to
maximise. IP rights can, however, be very powerful tools in the
development of a business, providing a cost effective means for
growth, with benefits that far outweigh the cost and complexity of
management."
For further press information,
please contact:
Louise Eckersley, PR Manager,
Field Fisher Waterhouse LLP on +44 (0)20 7861 4120.