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Jukka Nihtily¤ 2014-10-30_Nokia IP

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Nokia IP

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Jukka Nihtily¤ 2014-10-30_Nokia IP

  1. 1. 1 © Nokia 2014 IPR Value Creation Jukka Nihtilä, Director, IP Business Development November, Espoo, Finland
  2. 2. 2 © Nokia 2014 Nokia Technologies IP Business • 30k patents and applications • Based on a €50 billion cumulative R&D effort (1991-2013) • Focus on Standard Essential Patent Licensing
  3. 3. 3 © Nokia 2014 IPR Value Creation in 2006 ”IPR creates value in many ways”
  4. 4. 4 © Nokia 2014 • Increased pressure to realize the value of from patent portfolios • Driven by the increasing cost of patenting and patent portfolio maintenance • and highly publicized examples of large settlement payments and patent sales • Patent monetization has become an accepted - even required - practice 1. Patent licensing 2. Patent sales IPR Value Creation today – Focus on Patent Monetization
  5. 5. 5 © Nokia 2014 • US patent licensing market $50bn to 500bn *) • Patent licensing is a fundamental element of the high tech economy - An enabler of new entrants - Ensuring fair compensation for technology contributors • Well established practise in tech industries - Telecom - Computer hardware/electronics - Medical devices Patent Licensing *) Deloitte & Touche LLP, 2007 and U.S. Bureau of Economic estimate for 2012
  6. 6. 6 © Nokia 2014 Key players in the tech industry ”The Billion Club” Licensing companies
  7. 7. 7 © Nokia 2014 • Both licensors and licensees have been practising ... • 3rd party advisory services exist to support • Early settlements rare, enforced patents will be challenged • Cost and time to license revenue increasing • ”Hybrid deals” used to open deadlocks • The importance of patent quality remains Patent Licensing is becoming increasingly sophisticated
  8. 8. 8 © Nokia 2014 • Some patents may create more value outside your portfolio • Emergence of patents sales market - Intellectual Ventures acquisition program since 2003 - High-profile transactions - Nortel 2011, AOL 2012, Kodak 2012 • Market today - 815 open market portfolios on sale in 2013 (RPX) - 50% of today’s open market portfolios transact in 6 months - 30-40% of seller’s low-end expectations Patent sales
  9. 9. 9 © Nokia 2014 • Peak transaction value reached - Nortel: ~1MUSD per US patent - Current average: $150-250kUSD per US patent • Supply increasing - Large tech corporations – not only US and EU but JP and CN as well - Universities - Individual inventors - Patent factories • Strong demand for high-quality patents and concentrated portfolios - Large technology companies - ”new entrants” in the Tech industries or companies entering new market segments - Patent aggregators (IV, RPX) - Buyer consortiums (Nortel, Kodak) - Patent licensing companies - Sovereign wealth funds (France Brevets, Intellectual Discovery, IP Bridge, Ruichuan) Patent sales going forward
  10. 10. 10 © Nokia 2014 • IPR value creation increasingly focused on financial return on the IP assets • Patent licensing calls for quality, scale and creativity • Patents sales continue to be a key element in patent monetization Conclusions
  11. 11. 11 © Nokia 2014 Thank you! Any questions...

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