Edison in the Boardroom Revisited

SUZANNE S. HARRISON is a cofounder and Principal in Percipience LLC, a board-level advisory firm focused on intellectual property strategy and management, quantifying and mitigating IP risk, increasing IP value capture and focused innovation. She is also the convener of the ICM Gathering, a group of global companies that has been meeting since 1995 to define, create, and benchmark best practices around Intellectual Property Management (IPM) and other intangibles (I-stuff). An intellectual property expert testifying on both damages and IP management activities, she has written numerous articles and is coauthor of Einstein in the Boardroom, also published by Wiley. Dr. PATRICK H. SULLIVAN is an expert on extracting value from intangibles. He has pioneered the development of methods and practices for analyzing, valuing and managing intangibles for business purposes. He has consulted with over 1,000 companies on issues related to value extraction and valuation. He is a court-approved expert on valuing intangibles and has pioneered the development of valuation methodologies specifically for intellectual property. He is a frequent speaker and has published several dozen articles on valuation and value extraction. His other books include Technology Licensing, Profiting from Intellectual Capital, Value-Driven Intellectual Capital, and Einstein in the Boardroom, all from Wiley.

• Acknowledgments xiiiChapter 1 Introduction 1Why Update Edison in the Boardroom? 3A Brief History 6The Edison Mind-Set 11The Intellectual Property Management System 18Summary 25Chapter 2 The Changing Environment for IP Management 27The Rise of the NPE (Nonpracticing Entity) 28Technology Convergence 29The Arrival of the Chief Intellectual Property Officer (CIPO) 30The Globalization of Business 33The Changing Legal Environment 38The Continuing Lack of a Formal IP Marketplace 39The Rise of the IP Investor 42Summary 45Chapter 3 Level One: Defend Position 47What Level One Companies Are Trying to Accomplish 48Functions, Tools, and Capabilities Quiz: Questions Only You Can Answer 51Best Practices for Level One: Defend Position 56Summary 68Chapter 4 Level Two: Manage Costs 71What Level Two Companies Are Trying to Accomplish 72Best Practices for Level Two: Manage Costs 74Summary 92Chapter 5 Level Three: Capture Value 93What Level Three Companies Are Trying to Accomplish 94Best Practices for Level Three: Capture Value 95Summary 118Chapter 6 Level Four: Synthesize Opportunities 119What Level Four Companies Are Trying to Accomplish 120Best Practices for Level Four: Synthesize Opportunities 121Summary 139Chapter 7 Level Five: Shape the Future 141What Level Five Companies Are Trying to Accomplish 142The Characteristics of the Future 143The Characteristics of Sustainable Corporations 143Best Practices for Level Five: Shape the Future 148Summary 159Chapter 8 What to Do When You're Not on the Pyramid 161Is My Company on the Pyramid? 162Is My Company a Candidate for the Edison Pyramid? 163Characterizing IP-Indifferent Companies 164How Companies Can Destroy Value 167Moving toward the Edison Hierarchy 170Summary 171Chapter 9 The Procter & Gamble Journey 173Beyond Make and Sell 174Out-Licensing Technology 175Additional Growth via Effective Policy Changes 176Reinventing and Integrating Trademarks and Brands 177Looking Externally 180IP as an Enabler to Innovation 184Looking Forward 185Appendix A Significant Developments in Intellectual Property Law in the Past 10 Years 187Mark RadcliffeRecognition of Value of IP Rights 188Developments in Patent Law 194Developments in Copyright Law 205Developments in Trademark Law 210Appendix B The Rise of Patent Aggregators 215Kent Richardson and Erik OliverTerminology 215Background 216Valuation of Patents in the Aggregation Context 219Classification Based on Business Model 220Intellectual Ventures 224Patent Aggregators: Good or Bad 225Future Aggregator Ecosystem Directions 226Appendix C A Closer Look at IP Damages 229Eric Shih and Rob KramerPatent Damages 230Entire Market Value Rule 231The Road Ahead 236Notes 237About the Authors 243Index 245