Extracting value from intellectual assets

Intellectual assets are fundamental to the operation of technology-intensive firms. Companies skilled at managing intellectual property as a business strategy protect the core of the business while licensing IP to generate a return on investment. Developing a reasonable and defensible valuation model is key to the success of any intellectual asset management program. A previous article described how leading firms strategically organize their intellectual asset portfolios (RTM, Jan.-Feb. 2005). This article describes the valuation of IP, specific methods for extracting value from the IP portfolio, organizing,for out-licensing technology, and the career opportunities for licensing professionals.