EDITED

With relatively recent acceptance of IP, and more particularly patents, as assets which may be employed like any other in conventional commercial contexts, one might think that these assets could be used freely as collateral without selling the family silver. Ocean Tomo who already boasts a Patent fund should quite easily absorb these assets on a simple leaseback or part equitised basis and thereby increase the leverage of the assets and provide valuable funding to the patent owner as a matter of normal business.

It is both the interests of both the patent holder and the fund to acquire assets at reasonable rates whilst allowing the full exploitation of patent rights by the creator in innovative business practice. This would serve to ensure maximum patent value in the longer term and optimal revenue for the investor/s. It is unfortunate that these funds are not already widely and freely available and fully subscribed. One must thus question the efforts of patent granting authorities and the so-called patent specialists who are clearly failing to develop these vehicles effectively. The investment potential is arguably far less risky than start-up angel capital as it is not exposed to the full business model (including management funding etc) but only the innovation itself and a diversified basket of these patents would reduce this risk dramatically. It is quite feasible that these funds would also allow for “long” investment in whole assets and should also be attractive to governments who sought to incentivise and invest in domestic innovation for real returns.

Perhaps this journal and industry leaders could finally acknowledge the value of patent assets in conventional business financing models even allowing for patent “troll” investment and free up the innovators to concentrate on bringing the improved technologies to market unencumbered by complex IP decisions and legal minefields.