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A NovumIP ManifestoSmart IP Three priorities for value creation in the new global IP economy

A NovumIP Manifesto

A welcome from our Chairman

Thank you for your interest in NovumIP and welcome to Smart IP, our vision for the future of IP services.

In the last 10-15 years, the world of intellectual property (IP) has experienced a series of dramatic and exciting changes and disruptions.

IP was once a niche sector that operated with relative autonomy and little oversight. Driven not least by digitalisation and globalisation, the IP sector has evolved over time towards the centre of global value creation.

Bringing IP into mainstream business was necessary for economies and companies to fully realise the value of their IP. At the same time, IP departments, their external IP firms and service providers have become increasingly exposed to the same business realities that face every other sector. Costs must be justified, tangible benefits measured and continual improvements made – and rightly so.

As a result, we find ourselves in a situation in which market participants, economies and governments acknowledge the central value of IP and international IP systems, and wish to make greater use of this value – but are constrained by traditional systems, channels and tools. The need

to deliver greater value with fewer resources is likely to be exacerbated by the current COVID-19 crisis and the recession that has been predicted to follow.

Smart thinking and smart technology To succeed in this new environment will require smart new IP solutions, as companies turn to their IP advisers to provide more efficient and cost-effective ways to manage both reliable IP advice and routine administrative tasks across the world.

We believe it is time for a new breed of IP provider to meet those needs: one that is built to address the issues that IP owners experience now and in the foreseeable future; and one that operates coherently and efficiently, helping IP professionals in private practice and industry to derive the maximum value from IP.

If you have any questions about any of the content covered in our manifesto, please get in touch with us at info@novumip.com. We look forward to hearing your thoughts and feedback.

Reinhard Ottway, Chairman, NovumIP

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Empowering IP professionals In today’s digital and highly competitive global economy, companies have new opportunities to expand and thrive. However, most global IP management and protection strategies are accompanied by a heavy administrative burden for many IP owners.

Source: World Intellectual Property Office, 2019

Patent filings 2008-2018

Trademark filings 2008-2018

1

201814,321,800

+159.9%

20183,326,300

+72.3%

2008

5,511,200

2008

1,930,000

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IP owners have expanded and evolved their businesses into new geographies and markets, including online, but many IP systems that support them are having to play catch-up. Such is the administrative burden, cost and legal complexity of managing and enforcing a global IP portfolio that many IP owners find themselves tasked with overseeing a disparate group of suppliers, while trying to focus on tactical execution across multiple channels and markets. This also puts pressure on domestic IP firms to deliver cost-effective international solutions that match the level of investment and knowledge of existing global players.We hear routinely from customers who feel trapped: they’re being asked to do more, to drive greater value and protect rights all over the world – often in new market segments, online and offline, and in unfamiliar legal jurisdictions.

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1 Empowering IP professionals

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1 Empowering IP professionals

Fragmented global landscape increases legal complexity and administrative burden

IP managers must make budget-driven decisions to in-source what they can and coordinate with a range of international suppliers in multiple jurisdictions and according to varying regulations. It’s easy to see how mistakes happen: small details matter, time can be wasted and that important holistic and accurate picture of the rights and how they are being managed is very hard to maintain.

Too busy to think clearly

In-house teams and their external advisers not only need to manage their assets and suppliers, they also have to do so while justifying their contribution to the company’s bottom line. This leaves limited time to focus on the strategic aspects of their role, such as informing decision-making or shaping future strategy to ensure the company is maximising the full potential of its IP.

The competitive advantage

We believe that IP service providers should act as trusted allies to IP owners, and their external advisers and partners, empowering them with the necessary data-driven insights, tools, best practice and strategic guidance to allow them to focus their attention on achieving their broader business goals.

The fragmented IP regulatory landscape will endure for some time yet, so what IP professionals really need from their providers is a holistic approach and sage advice which makes sense of the complexity around international IP law and practice.

A single point of contact for global activities combined with a modular approach to IP services, which allows the buyer to pick and choose the services they require, delivers better value for money and the ability to spend resources more wisely. In addition, IP owners and their domestic advisers should be able to take advantage of a flexible approach to ensure they are receiving a tailored solution that is aligned to their business needs.

Delivering efficient IP administrationDigital transformation and greater transparency could drive much of the efficiency that is being demanded of the IP industry. Progress is being made in this direction, but there is more that can be done.

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Praise for an IP professional for getting it right is rare, but mistakes can be costly. For IP professionals to drive accuracy and efficiencies, they need access to efficient, interoperable tools and systems that speed up manual processes and provide a global, holistic view of the IP estate.

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2 Delivering efficient IP administration

The slow road to the information superhighway

The move from traditional operations to digital tools has transformed processes for some, albeit at a far slower rate than in other similar industries: often there are paper processes and admin-heavy tasks still in place that prevent IP professionals from getting the service and value that they need from their providers. As experience shows, the digital transformation of IP services is impossible without a fine-grained understanding of frequently evolving regulations and processes.

Technology solutions are reducing flexibility and increasing complexity for users

The IP technology market comprises a number of highly specialised technical solutions, many of which have been developed to help IP owners by offering fulfilment and other ‘point-to-point’ administrative services.

While these have enabled many IP departments to save money, they have separated service delivery from strategic legal advice, which in turn has led to its own challenges.

As many IP owners have since discovered, these technologies can also be a ‘Trojan horse’, locking companies into long-term use of the technology and leaving them with little choice and freedom to choose their partners. In addition, tools that may once have been cutting edge are not always modernised in line with the wider commercial environment, leaving businesses stuck with systems that are no longer fit for purpose, or which have introduced new barriers into the IP management value chain.

To make a real difference, all services need to be delivered efficiently and seamlessly, preferably to one single system that provides a complete overview of IP portfolios, budget forecasts and market data — across all jurisdictions and markets.

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Lack of flexibility driving inefficiency

In addition, outdated pricing and invoicing practices can cause confusion in an already complicated sector. Many IP firms continue to deliver and invoice for services in a way that can be hard for clients to disentangle, which in turn makes it hard for them to find efficiencies. Larger IP providers deliver high volume services which discourage customisation, and this lack of modularity forces clients to take what they are given or pay opaque prices.

The competitive advantage

A joined-up approach to legal advice, technology and administrative processes helps to resolve the disconnect that can exist between multiple tools, low-cost providers and external counsel.

Our role is to help IP professionals to achieve more, in less time, at a lower cost and with higher confidence. This means providing businesses with a global platform that offers modular IP services, so they can access the support they need without having to take all elements of the service or migrate their data across to an entirely new platform.

2 Delivering efficient IP administration

Tangible versus intangible asset value of S&P 500 companies (in trillion dollars)

How senior investment decision makers view intangible assets

Five biggest companiesAppleAlphabetMicrosoftAmazonFacebook

1975 1985 1995 2005 2018

Five biggest companiesCEExxon Mobil Microsoft Citigroup Walmart

Five biggest companiesIBMExxon Mobil Proctor & Gamble CE3M

Five biggest companiesIBMExxon Mobil CE SchlumbergerChevron

Five biggest companiesCEExxon Mobil Coca Cola AttriaWalmart

0.59 1.021.47 2.32

4.00

0.12 0.483.12

9.28

21.03

Tangible

Intangible

59% said intangible assets

are an increasingly significant part of their

assessment and valuation of companies.

41% answered that

intangible assets play the same role in their

assessment and valuation of companies

as they have in the past.

Source: Columbia Threadneedle Investments 2019

Source: Aon/Ponemon Institute 2019

Driving value creationInnovation and brand strength are key value drivers in the modern economy. This has made businesses more aware of the role of IP and has offered IP professionals the opportunity to play a key role in corporate success.

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As businesses have become more aware of the role of IP, there is greater opportunity for IP departments and their external counsel to evolve their role and showcase their value. At the same time, this increased visibility also means that IP heads are under greater scrutiny and are having to justify budgets more than ever.

IP departments and their external counsel are faced with the perennial challenge of finding the balance between cost and quality – and this is only likely to be further exacerbated by the COVID-19 crisis. It is up to us to change the conversation from one of cost to one of value.

3 Driving value creation

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IP as value creator, not a cost centre

As IP professionals, we all know that IP is a powerful asset with clear benefits in terms of customer recognition, loyalty, goodwill and market share. The challenges lie in quantifying and communicating that value.

Of course, when it comes to reporting on value, it does not help that the legal system that supports the creation and protection of IP is not always understood or appreciated outside IP departments – or that traditional IP legal advisers do not always provide the kind of proactive, commercially-aware and strategic advice that a modern business needs.

The competitive advantage

To help IP professionals make their case effectively at the boardroom level, we need to free them up to deliver what matters most: adding value to the business through IP.

The best way service providers can do this is by providing the strategic view needed to truly capitalise on IP opportunities. This requires the best possible combination of trusted advice, tools and seamless processes.

NovumIP’s unique combination of experienced IP experts and global knowledge of the IP landscape, supported by our cutting-edge and software-agnostic technology will empower IP specialists to be more effective, efficient and strategic, adding value to businesses and economies.

3 Driving value creation

Looking to the future

In the last 15 years, the IP sector has moved into the mainstream of the global economy. However, as we have set out in this manifesto, there are a number of important challenges that still need to be overcome. The three challenges that we have described can all be solved through the right industry investment and by committing to improving the experience of IP professionals. The result will be a better functioning, more efficient and therefore more productive IP market, with businesses able to generate greater value from their IP assets.

At this time of unprecedented change, but also huge opportunity for in-house IP professionals and their external advisers, we believe the best way that we, as a service provider, can help is by:

• • providing a single go-to resource for IP departments and their law firms;

• • combining legal and consulting expertise and smart IP solutions;

• • advising and assisting IP owners and their advisers on increasing efficiency;

• • and thus empowering them to harvest the full value of their IP portfolio.

Find out more at: www.novumip.com

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Thank you

About NovumIP

NovumIP is an integrated, global IP provider that combines the excellence of business-focused consulting and the efficiency of tech-enabled services. Formed in December 2019 as a joint venture between leading IP specialists Novagraaf and PAVIS, our smarter thinking and smarter technology helps clients to achieve their strategic goals, by informing critical decisions that increase and protect IP value. Building upon the deep customer knowledge, first-rate service and rigorous attention to detail of both Novagraaf and PAVIS, NovumIP is the new global benchmark in the IP market.

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