IP strategy advice for small business owners slightly misses the mark

An online journal in a sincere attempt to inform small business owners about IP laws and opportunities falls into the trap of relaying a suggestion that a company's balance sheet offers adequate data.

“Companies can improve their financial performance by monetizing patents and other intellectual property. The goal is to increase the assets and revenues that derive from technology and innovation, while decreasing liabilities and expenses. A good beginning is to prepare an IP financial report, adapted from conventional financial statements … [which] managers can use to track return on IP investments and to improve performance over time. They can find practical strategies for increasing assets and income and reducing liability and costs by placing a value on each asset.” (White paper: Monetizing Intellectual Property To Improve Financial Performance)

As oft-stated here, “conventional financial statements” hinder managers in their attempt to “track return on IP investments,” as only acquired IP is reflected. In contrast, it’s good to see the refrain “it’s only by first valuing IP assets that they can be managed” is being reinforced.