Why IP Outsourcing is Crucial in the Financial Services Industry?

IP will help decide whether the company is pursuing innovative developments in the market or whether it can license financial returns on its IP.

Fremont, CA: In today's turbulent global economy, lawyers and managers of in-house intellectual property (IP) are required to defend market creativity when facing ever-declining budgets efficiently. In order to stay sustainable and competitive, it has pushed businesses to pursue cost-saving initiatives and non-traditional operational methods. Outside counsel and patent practitioners equally feel the struggle as clients demand lower rates to meet reduced budgets.

The analyst's role in the financial services industry is to evaluate the risk profile of all prospective investments that should include a due diligence examination on the patent portfolio of this company. In the telecoms and pharmaceutical industries, which depend heavily on innovation and protection, it is crucial. If a company has not invested in the security of its goods in regions it wishes to commercialize, investors should register it as a red flag. This is where outsourcing to IP professionals becomes critical in making sound investment choices. Believing in business experience can help a financial analyst determine whether the security covering the intellectual property of a corporation is sufficient.

To recognize the infringement risk, outsourced IP services such as a competitive intelligence report, a patent portfolio audit, or an FTO review are critical. IP will help decide whether the company is pursuing innovative developments in the market or whether it can license financial returns on its IP.

In the world of M&A, IP analysis and awareness of IP risk are important. Although high-value deals are at the forefront of the world of investment banking, they also allow companies to pursue a crucial part of any transaction, and it would be naive to assume that there is no position for IP analysis in this. Similarly, the protection of the patent portfolios of companies must be investigated as to whether their goods are covered within the jurisdiction they wish to operate.