Intellectual Property Monetization

How to make Ireland number 1?

Fred Logue

+ =

Source: IDA Horizon 2020

Obsessive Focus on FDI

1957 to 1973•From Protectionism to EEC

•Trade Liberalisation

•Allow foreign ownership

•0% CTR on profits of exports in manufacturing sector

1973 to 1987•EEC to Single Market

•Advances in Education

•10% CTR•1976 all manufacturing

•1984 Software•1987 IFSC

1987 to Celtic Tiger•Single Market/Offshoring

•Telecoms Infrastructure

•Labour market reform

•2003 12.5% CTR

Today•STI Policy and R&D offshoring

•SFI•R&D Tax credits•Intangible asset scheme

Source: Barry (2007)

Source: Barry (2004)

Source: Barry (2004)

Identify niches Dynamic Growing Sectors

Good Fit for Ireland• Tax• Skills• Geography

Persistent pursuit of opportunities

1986-1992 Deregulation of European Air Travel Markets

2005 Changes to US Tax Law

1987 Financial Globalisation

1987 Financial Globalisation

Intellectual Property is the legal right to control the results of creativity and innovation

There’s a $50 billion-plus market in IP rights and licensing

Izhar Armony, Charles Rivers Ventures

>

Round Rock

Intellectual Ventures

Offensive Patent Strategy

Defensive Patent Strategy

Acquiring Patents/rights

Usi

ng S

elf-G

ener

ated

Pat

ents

/Rig

hts

Acacia PLC Rembrandt

OIN

Alset IP

Altitude

AST

Coller Capital

Mosaid

Alpha Patent Funds

Patent Monetization Landscape – Key Players

Source: Coller Capital; Brody Berman, PatentFreedom

Deutsche Bank

Credit SuissePaul Capital

Turtle Bay

Juridica

InterDigital

Rambus

Tessera

Acacia IP Fund

Techquity

RPX

IP Gest

GPC

Paradox Capital

Patent Holdings (# of patents)

Very Small (≈ 100)

Very Large (10k +)

Arca

Ignite IPPapst

WalkerDigital

MMI

Intertrust

IPcomKatzLemmelson

Defensive Pool

Private Co

Public Co

Patent Holder

Litigation Fund

Tech Develop Co

Securitization Firm

Regional Devel Fund

Private Invest Fund

Pat Licensing Co

Mobile Pat. Trust

WiLANSisvel

Via

Source: Acacia

Source: Acacia

Our approach enables our client network to manage patent litigation risks and costs through collective defensive patent initiatives, superior patent intelligence, and special advisory services.

Acacia Research’s subsidiaries partner with inventors and patent owners, license the patents to corporate users, and share the revenue. Acacia controls over 160 patent portfolios covering technologies used in a wide variety of industries

As the global leader in the business of invention and owner of one of the world’s largest and fastest-growing patent portfolios, we are creating an active market for invention that connects buyers, sellers, and inventors.

Europe is Scratching its Head about IP

But…

Indigenous Irish firms are extremely unsophisticated in their use of Intellectual Property

For managers in FDI companies IP is (generally) something done in head office with little or no visibility here

2009 US Patents vs Market Cap

Monetization

Collaboration

Isolation

Source: OECD

Denial

Commitment included in the Government's Economic Recovery Plan "Building Ireland's Smart Economy"Encouraging companies to locate the management and exploitation of their intellectual property in IrelandWith the potential to create high-quality employment in the process.

IP Exploitation IncentivisedS 291A Taxes Consolidation Act 1997

Revenue Tax Briefing (July 2010)

Allowance of 80% of capital expenditure on specified intangible assets against income arising from activities consisting of managing, developing or exploiting specified intangible assets

Definition of Specified Intangible asset includes most forms of Intellectual Property

Therefore 2.5% effective corporation tax rate possible on IP income

– Established a Dublin-based European headquarters to better serve European customers, expand its intellectual property network and grow licensing business worldwide

– Established in Ireland as a springboard for expansion into Europe

– Purchase of 400 patent assets from BT by German Patent fund

– Transferred management of DTS’s global client licensing program to Ireland enhancing its ability to serve global customers

IP is a Real Niche

Large Growth Market

Good Fit for Ireland•Tax•Skills•Geography

High reward for

persistence

How do we attract IP activities and make sure know-how is transferred to both indigenous and foreign companies?

Services innovation will represent a significant area of growth, as different sectors converge and new solutions are developed management.

This ‘servicisation’ of companies offering new solutions will be an increasing source of new employment to 2014 and beyond.

fred.logue@newmorningip.com (01) 254 2340 l www.newmorningip.com l

@newmorningip