The document discusses various aspects of innovation monetization through patents. It provides statistics on university patenting and licensing in the US, showing billions in research funding leading to hundreds of thousands of invention disclosures and patent applications, and tens of thousands of patents and active licenses. Top earning US universities are listed by licensing revenue. Examples are given of large companies like IBM, Qualcomm and Nokia that generate significant revenues from patent licensing, in some cases over 20% of total revenues or profits. The document also notes that on average, only about 40% of a technology's value is typically monetized through patents or licenses.

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Can Innovation be monetized?

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Components of S&P 500 Market Value
Data: Ned Davis Research, Inc.
http://www.youtube.com/watch?v=3Uzmg2bEgv8&feature=player_embedded

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University Patent Monetization

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Are Universities Patent Trolls?

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US Technology Commercialization in Numbers*
6
Research Funding
(~$693B)
~293,000
Invention
Disclosures
~152,000 Patent
Applications
~61,200 Patents
Awarded
67,102 active
license & options,
7,781 start-ups
* Source AUTM Licensing Survey 1991-2011

7. predAUTM 2013 Licensing Survey
Highlights include:
24,555 total U.S. patent applications filed (+11%)
14,995 new patent applications filed (+5.7%)
5,714 issued U.S. patents (+11%)
5,198 licenses executed (+1.3%)
1,356 options executed (+9.2%)
469 executed licenses containing equity (-2.9%)
818 startup companies formed (+16%)
4,206 startups still operating as of the end of FY2013 (+5.1%)
US University Technology Transfer in Numbers

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Universities are far from being “patent trolls”
Patent is a negative right –
right to exclude others

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Top US Institutions by Licensing Revenue
AUTM 2013 Licensing Survey

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Corporate Patent Monetization

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“To match [their patent licensing] revenue
stream, IBM would have to sell roughly $20
billion worth of additional products each year,
or an amount equal to one-fourth its
worldwide sales” – Harvard Business Review.
$2B in patent licensing revenue in 2014, 70% of revenues
And 94% of gross margin! Licensing revenues totaled €118 million in the
period, increasing by 7% year-over-year.
Qualcomm, one-third of its revenue comes from licensing,
and licensing revenues represented 80 percent of its profits in 2013
- Robert Litan, Hal Singer

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Nokia's (NYSE:NOK) licensing division, which accounts for about
22% of the company's value as per our estimates, generates
revenues through royalties paid by other companies for the use
of its intellectual property. From 2010 to 2014, the segment's
revenues grew steadily from EUR 100 million to EUR 560
million, with a spike in growth to EUR 840 million in 2011,
thanks to a settlement with Apple (NASDAQ:AAPL).

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Patent Applicability – Option Value
50%
10%
15%
25%
Product
Competitor
Other divisions
Other Industries

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Extracting value from IP
50%
10%
15%
25%
Product
Competitor
Other divisions
Other Industries
On an average of 40% value of
technology is never monetized

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