Intellectual Property and Supply Chain

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Boosting Supply Chain Using IP

With asset managers trying to hunt for deals to boost revenues, industry CEOs are now turning to extract maximum value from their Intellectual Property (IP) rights. There is a distinctive trend in which business are more willing to change traditional thinking over IP ownership and associated risks to build a more resilient supply chain.

CEOs are rapidly realizing that introduction of new technologies in their supply chain will not only provide benefits for various supply chain participants, but forge new relationships. For example, the Internet of Things (IoT), not only has taken over every household and has transformed the way we interact with our “appliances”, but may also be used to remotely monitor and provide real-time data of how various points in the supply chain are interacting. Furthermore, IoT in combination with other technologies, such as sensor systems and wireless networks, can be used to create smart networks that can alert participants potential issues before they arise, thereby building resilience and efficiency within the chain itself.

Although, wireless communication technologies necessary to enable IoT and transfer of data are standardized and their use protected by patents and other rights; but standardization does not mean technology is free to use. If a patented technology becomes part of a standard then it becomes mandatory to implement that feature as part of the standard, thereby creating what is known as a standard-essential patent (SEP). One way to generate income is for the SEP holder to ask the implementers of it’s SEP patent, to pay a royalty fee for using that technology.

Another source, to unlock the “hidden value” of intangible assets or IP assets (regardless of whether it’s as patents, brands, software, trade secrets and copyrights) is to raise funds by offering the IP asset(s) as the main form of collateral. This requires not only knowing the “fair” value of IP assets on a continued basis, but also knowing the value of IP assets on a liquidation basis, in a downside or financial distress scenario.

Our team at Alpha Bridge have extensive experience in the field of technology and IP – from understanding the uniqueness of your IP, in terms of technology, to structuring solutions that provide maximum upside coupled with freedom to operate. If your business already has IP or is full of ideas that you believe would disrupt the supply chain ecosystem, contact us and we will connect you with funder that not only share your motivations but will guide you in the best possible manner with the appropriate funding solution.

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