Intellectual property (IP) – things like trademark valuation, patents, copyrights, and trade secrets – has become one of the most important assets for companies in the 21st century. With the fast pace of change in technology and innovation, there is more and more focus on how valuable IP rights are. As we enter 2024, there are some key trends happening that are shaping the value of IP that companies need to know about.
Growth in IP Assets
The amount and value of IP assets are expected to keep growing very quickly in 2024. More and more companies are realizing the competitive advantages that having strong IP portfolios provides in areas like trademarks, patents, copyrights, and trade secrets. There is also more new IP being created around things like artificial intelligence, virtual/augmented reality, internet of things, and blockchain. The rise in intangible assets now makes up over 90% of the total market value of S&P 500 companies.
Increasing Importance of Tech and Pharma
Technology and pharmaceutical companies are expected to continue having most of the world’s most valuable patents and brands. However, companies in other industries are also aggressively building their IP assets. High-value patents are being sought in areas like medical devices, biotechnology, and semiconductors. Trademarks and brand value will remain important across consumer industries.
Rising Patent Filings
Patent filings worldwide will likely keep rising quickly, with most activity happening in North America, China, Japan, South Korea, and Europe. Companies will use patents to protect technologies like 5G, electric vehicle batteries, renewable energy, biotechnology, and new materials. There will also be more patent filings related to new technologies like AI, internet of things, cloud computing, and quantum computing.
Growth of Private Equity Investment
Private equity firms have been actively acquiring valuable IP assets from companies and using them to create investment funds. This trend is expected to increase in 2024, with IP-focused funds attracting more interest from investors due to higher returns. Private equity firms will look for undervalued patents and brands across technology, life sciences, and consumer products.
More IP Lawsuits
As the value of IP grows, lawsuits around enforcing IP rights are also expected to increase. Patent lawsuits will continue fiercely in areas like telecommunications, biotechnology, and computing. Trademark lawsuits will remain high in retail, food and beverage, technology, and pharmaceuticals. Countries will focus more on improving how IP disputes are resolved through specialized IP courts and tribunals.
Geographic Expansion
Strong IP protection systems in North America, Europe, and parts of Asia will keep valuations high in these regions. However, China is rapidly emerging as an IP powerhouse with more filings and lawsuits. IP Valuation in China are expected to rise quickly. Other regions like South America, Africa, and Southeast Asia will see growth in IP activity and higher valuations as IP systems strengthen.
Importance of IP Management
Companies will need to focus more on actively managing IP as a strategic business asset. More involvement from executives, integrating IP strategy with business goals, creating value from IP assets, and quantifying IP risks and returns will be key. Companies with disciplined IP management practices will be better positioned to unlock the full value of their IP.
Emergence of IP Analytics
Applying data analytics to IP information will continue growing as a tool for strategic decision-making. Analytics will provide insights from patent landscapes, IP licensing rates, lawsuit trends, competitor IP activity, technology trends, and market developments. Companies will use analytics for valuation, finding investment opportunities, assessing risks, and predicting future technology directions.
Overall, IP value looks set for strong growth in 2024 across industries and regions. Companies that build strong IP assets in key technologies and manage them effectively stand to benefit greatly from the rising worth of intellectual property. The IP landscape will keep evolving rapidly, requiring flexibility and foresight to fully capitalize on IP trends in 2024 and beyond.