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April 28, 2008

IP Development Strategies for Startups/SMEs

Playing off my last post on the subject of trademark and brand strategy, I started to consider the value of patents as part of a branding strategy – the idea that a company can create greater brand value by publicizing its patents and innovation efforts.  Some great companies – like IBM as an example – have done well by this strategy, creating for itself a market perception that their products and services offer greater value partly because of the IP assets that underlie them.  This strategy may have become a bit long-in-the-tooth for other large companies, but it does seem that smaller companies – particularly start-ups and SMEs – may find some value in utilizing a branding strategy that emphasizes their IP development activities.  In fact, one could argue that such a strategy should be THE strategy for emerging companies, insofar as these companies usually cannot compete well on price with larger companies.  They must bring something else other than low prices to the “table” of competition – and perhaps the best way to create perceived value is to emphasize the quality of their innovation and IP assets.

That being said, small companies must think thoughtfully as to how to implement an IP development strategy that is cost-effective and a real value generator for the firm.  On this note, an excellent article by Guy Kawasaki provides some excellent pointers on how emerging companies can implement an effective IP strategy.  His article may be found at

http://blog.guykawasaki.com/2006/11/counterpoint_pa.html

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