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Talk given to the Irish branch of the Licensing Executives' Society. Talk covers how intellectual property dynamics intersect with Ireland's FDI strategy.
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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.
