Business Power: Creating New Wealth from IP Assets

Chapter 4. The Economic Infrastructure, Standards, Regulations, and Capital Markets

DR. STEVE HENNING

We need to understand this external landscape that not only shapes the way we do business, but also governs the way we can create and recognize new wealth.

Key Points to Look For

• Companies must be able to measure the value of their IP assets to support internal operational decisions.

• Companies must know how Wall Street assesses IP value in their industry, because IP-savvy companies trade at a 30 percent premium.

• The recognition of IP asset value will depend upon consensus of standards and practices in the regulatory, investment, and business communities.

• Board members must stay apprised of the effects of IP on the company’s operations and reporting.

• The Sarbanes-Oxley Act has sparked the acquisition of a new knowledge–skill mix that shapes the enterprise from top to bottom.

IP Management’s Two Dimensions—Internal and External

IP management traditionally refers to the practices, policies, and procedures that are used inside the enterprise to create more assets, protect them more effectively, and accelerate the value extraction from this class of assets. This is one aspect of IP management, but the other, perhaps even more critical one, is the external environment—the role the financial, investment, and regulatory communities play in shaping the management of IP and other forms of intangible ...