Edison in the Boardroom: How Leading Companies Realize Value from Their Intellectual Assets

Book Description

Julie L. Davis and Suzanne Harrison

Today's corporations are always on the lookout for exciting new and innovative ideas that can be used to generate revenue. Up until recently, this meant taking these ideas and turning them into products or services, which could then be sold for profit. But today, a unique new concept is revolutionizing the way companies are getting value from ideas. Instead of incorporating them into products or services, today's innovations may be bartered, licensed or sold in the "idea" stage for tremendous amounts of money. For example, IBM currently receives well over $1 billion in revenue every year from licensing its intellectual property, unrelated to the manufacture of a single product. Today more and more companies are adopting this idea of turning their legal departments, where intellectual property is housed, from cost centers into profit centers.

Edison in the Boardroom: How Leading Companies Realize Value from Their Intellectual Assets takes an in-depth look at the revolutionary concept of Intellectual asset management (IAM). IAM is changing the way companies all over the world are doing business. In their careers as business consultants, the authors have been privileged to meet individuals who were clearly ahead of their time when it came to realizing value from their companies' innovations. Based on their interactions with the ICM Gathering--an international group of companies who meet several times a year to create, define and benchmark best practices in the area of IAM--the authors have compiled a wealth of knowledge and successful stories that illustrate how far businesses have come in their ability to leverage and monetize their intellectual assets.

Incorporating stories and teachings from some of the most successful companies in the worlds -- such as Hewlett-Packard, IBM, Procter & Gamble, Rockwell, Dow, Ford and many others -- the authors have made an exhaustive study of IAM and its implications for today's businesses. They have culled a hierarchy of best practices that today's companies can integrate into their own business philosophies to gain the best return from their intellectual assets.

Customer Reviews:

Convincing the skeptics.......2002-05-19

Professor Thomas G. Field, Jr., Franklin Pierce Law Center

Few variables are more likely to dictate short- and long-term commercial success than a firm's ability to convert intellectual assets into intellectual property (IP). The smaller the firm, the bigger the need, and the need only grows.
Most companies are careful to avoid IP infringement and are eager to sue direct competitors who do not. Many firms also educate key employees on their roles in perfecting and protecting intangible assets. Fewer give full attention to IP and antecedents that might nevertheless be regarded as assets. For example, those who would not hesitate to monitor and sue infringing competitors may not monitor non-competitors as potential licensees.
To extract the most from intellectual assets, many factors, e.g., legal, technical marketing and sales, must be weighed. Edison in the Boardroom offers important advice to help firms take steps to meet that need. Despite its reference to "assets" in the subtitle, however, most of this book focuses more narrowly - on IP, and on patents specifically.
Davis and Harrison, said to bring "a quarter century of IP consulting accomplishments between them," document that some companies have long engaged in trying to optimize the value of their intellectual assets. The authors also assign companies to a five-level hierarchy based on a range of IP-management strategies. A goldmining metaphor is usefully advanced at one point to describe those levels as: defensive (staking claims), panning (cost control), mining (deeper profit seeking), processing (integration), and sculpting. The heart of the book consists of five chapters that discuss these levels seriatim and offers a host of useful ideas and anecdotes.
The book is generally well-structured. For example, early in each of the five core chapters is a description of what "companies are trying to accomplish" at the corresponding level of IP-management sophistication. At the defensive level, of course, companies have processes for seeking, maintaining and enforcing IP. Yet, in the discussion of second-level companies, said to seek to reduce costs by exercising judgment about what is brought into and kept in their patent portfolios, it becomes clear how much various levels overlap. The first two topics may usefully be segregated for purposes of discussion, but it is hard to imagine any company that can afford, literally, to pursue protection without attempting to balance portfolio goals against concomitant costs. Indeed, one thesis of the second chapter is that no firm can seek the strongest protection for everything of potential patentability, much less seek it in every possible country.
The third chapter diverges considerably. Companies featured there are said to seek, e.g., to extract portfolio value as quickly and cheaply as possible. Several have gone well beyond suing competitors or easily discovered, non-competing infringers. The most aggressive of such firms regard IP departments as profit centers and actively solicit licensees. Their success is sometimes remarkable. As the authors point out, "Worldwide revenues from patent licensing have grown from $15 billion in 1990 to over $100 billion in 2000." Echoing the central theme of another recent book, Davis and Harrison also point out that, "Some experts estimate that companies are sitting on $1 trillion per year in unexploited licensing fees."
Fourth- and fifth-level firms are difficult to distinguish from ones discussed earlier - or from each other. For example, level-four companies are said to seek to integrate "IP awareness and operations throughout all functions of the company." That seems necessary, too, for allegedly less capable compatriots. Further, when level-five firms are described as embedding intellectual assets and their management into the company culture, it is difficult to find divergence.
The last are said to have as additional objectives: (1) staking a claim on the future and (2) encouraging "disruptive technologies." Still, these could easily been collapsed into "Get a Crystal Ball!" Heuristics for meeting them non-serendipitiously are weak.
Consider, for example, the mouse and graphic interface as commercialized on Macintosh computers. Steve Jobs is said to have derived both from the Alto computer developed by Xerox's Palo Alto Research Center. While Jobs became a billionaire, "Xerox completely failed to get into the personal computer business, missing one of the biggest business opportunities in history." To avoid repeating such mistakes, Davis and Harrison suggest that companies should "identify ways the corporation can benefit from [ideas outside their business capacity] before moving on." They, not surprisingly, can offer little guidance.
One IP attorney recently stressed the need for his colleagues better to understand the identification, protection and use of intellectual capital "effectively to address strategic corporate objectives." Those for whom this is novel terrrain will find Edison in the Boardroom helpful.
Also, senior IP counsel better acquainted with the topic may find the book useful. Some will face difficulty in convincing those at the same level or higher in the corporate hierarchy of its importance. To the extent that their advocacy of the critical role to be played by IP counsel is perceived as serving selfish aims, the book should help allay suspicions.
For these and other attorneys, the value of Edison in the Boardroom could easily, and vastly, exceed its modest price.

Very Good.......2001-10-23

The authors provide an excellent framework for companies to manage their intellectual property - without using too much consultant speak.

They quote examples at different levels of their framework and look at companies who are suceeding at managing and valuing their IP effectively. This is a skill which can only be more and more wanted in the future.

The most interesting takeaway is that most companies are very bad in this field, and there are very few success stories.

Comprehensive.......2001-10-02

Julie Davis and Suzanne Harrison's book, Edison in the Boardroom, takes readers deep enough into the field of intellectual property management for them to incorporate presented theories into their respective professional disciplines - researcher, attorney, licensing exec, etc. - without the book becoming unwieldy. Excellent balance. This book can become a cornerstone text for any professional involved with intellectual property to direct his or her focus for additional study and to ensure his or her working knowledge of the challenges confronting professionals in other disciplines that together form a corporate intellectual property management program.

Visionary and Innovative Pragmatism.......2001-08-11

The basic concept of this book is very intriguing: Briefly examine the life and career of Thomas Edison and then suggest direct correlations between his achievements with real-world situations in which various companies are now deriving substantial value from their intellectual capital. The authors also make skillful use of Edison's own recorded thoughts and feelings. Of special interest to me was what he had to say about the creative process. For example, "Men are just beginning to propose questions and find answers, and we may be sure that no matter what question we ask, so long as it is not against the laws of nature, a solution can be found." This what the author refer to as "The Edison Mindset." Edison apparently had almost no concern about a given experiment's "failure" which he continued to view, rather, as non-success to that stage. Too often, senior-level executives become preoccupied with results and neglect the process by which they can be achieved. Among Edison's greatest (and perhaps least appreciated) achievements was the establishment of the first research laboratory in which he and his associates would collaborate on various projects. Edison was a pioneer in recognizing the importance of assembling the best available talent and providing them with sufficient resources as well as a culture wherein those talents could be fully utilized. Davis and Harrison obviously have this point in mind when observing that "benchmarking best practices without any regard for the underlying culture of the firm can be problematic."

NOTE: For those interested in this subject, I highly recommend Organizing Genius in which Bennis and Biederman examine the collaborative efforts of those involved at the Disney studios which produced so many animation classics; at Xerox's Palo Alto Research Center (PARC) which developed the first personal computer; at Apple Computer which then took it to market; at the so-called "War Room" which helped to elect Bill Clinton President in 1992; those active in the so-called "Skunk Works" where so many of Lockheed's greatest designs were formulated; at Black Mountain College which "wasn't simply a place where creative collaboration took place. It was about creative collaboration"; and at Los Alamos (NM) and the University of Chicago where the Manhattan Project eventually produced a new weapon called "the Gadget."

This is an extremely well-organized and well-written book in which Davis and Harrison use the life and career of Edison for guidance to understanding subjects of major importance today such as breakthrough innovation, collaborative effort, the development and management of intellectual property, and effective organizational transformation. They suggest that companies (indeed all organizations) function in one or more of five levels which comprise "the hierarchy of value" for intellectual property, a model created at Andersen's Intellectual Property Management Practice and then at ICMG:

1. Defensive: "If a corporation owns an intellectual asset (such as a great business concept), it can prevent competitors from using the asset."

2. Cost Control: "Companies focus on how to reduce the costs of filing and maintaining their IP portfolios."

3. Profit Center: "Having learned how to control many of their patent-related costs, companies at this level turn their attention to more proactive strategies that can generate millions of dollars of additional revenues while further continuing to trim costs.'

4. Integrated Level: In this level the IP function ceases to focus on self-centered activities and reaches outwardly beyond its own department to serve a greater purpose within the organization as a whole."

5. Visionary Level: "Few companies have reached this level of looking outside the company and into the future. In this level, the IP function, having already become deeply ingrained in the company, takes on the challenge of identifying future trends in the industry and consumer preferences."

After an excellent Introduction, the authors devote a separate chapter to each of the five Levels and then provide a case study of the Dow Chemical Company, followed by three appendices: Mining a Portfolio for Value, Competitive Assessment, and Integrated Performance Reporting. They suggest all manner of similarities and differences between and among these five Levels, in process suggesting also a wealth of strategies and tactics to consider when attempting to achieve the desired results at any of these Levels.

To a greater extent now than at any prior time in human history, with all due respect to major developments such as the light bulb, telephone, automobile, and personal computer, corporations (indeed entire societies) seek "exciting, new, novel, and discontinuous innovations....For centuries, companies have linked ideas and money by embedding their new ideas (legally protected or not) into products to be sold or bartered. Today, however, an exciting new concept is revolutionizing the way companies extract value from their ideas: an idea no longer needs to be embedded into a product or service to create value. Today ideas are licensed, sold, or bartered in their raw state for great value." And they are getting that value through intellectual property management (IPM). Hence the importance of encouraging and supporting "The Edison Mindset."

Here in a single volume, the authors provide a comprehensive, cohesive, and cost-effective program. It remains for decision-makers in any organization now considering or at work on the design of an IPM to select whatever material in the book is most appropriate to their organization's specific needs. One value-added benefit of this book is that Davis and Harrison can assist with that selection process. A point made earlier, however, deserves repeating: "benchmarking best practices without any regard for the underlying culture of the firm can be problematic."

THE IP Value Extraction Methods Book of the New millenium.......2001-07-02

I throughly enjoyed the book, I read it in just a few hours. It is an informative text on how to make the most of your IP, especially for those companies that either have a great start by already having IP (patents) or those that want to get started developing it. This would have particular interest for those who want to start their journey in developing IP processes in their company. I have worked in this field for years and have read many books involving IP, but never has their been such a informative book. The nice thing is it is 100% up to date on what is going on and who is doing it. For instance, learn how Dow, probably the leader in the field of IP Practices, does what they do.

Davis and Harrison have taken their vast experiences and knowledge that they have obtained over the years of work with their clients and codified these experiences in a "best practices book", particularly focused on how to manage the IP you already have.

If you don't read this and you have an interest in this field, you will be missing what is likely to be the cornerstone text of the field.

John Cronin, CEO of ipCapitalGroup, Inc an IP Professional Services Company.

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This evaluation assesses the development effectiveness of the World Bank's lending and non-lending assistance to the Russian Federation since 1991, a 10-year period of tumultuous political, economic, and social change. This report concludes that an assistance strategy, concentrating on analytical and advisory services with limited financial support for Russia, would have been more appropriate than one involving large volumes of adjustment lending.

Banking and Financial Stability in Central Europe: Integrating Transition Economies into the European Union

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Banking and Financial Stability in Central Europe: Integrating Transition Economies into the European Union

Manufacturer: Edward Elgar Publishing
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Binding: Hardcover

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The eastwards expansion of the European Union is one of the most explosive economic and political issues of the early 21st century. Economic and financial stability combined with rising prosperity in the applicant countries are increasingly seen as necessary preconditions for European Union membership.

This authoritative volume, written by scholars and practitioners from Central and Western Europe and the United States, confronts the issues involved in three of the countries most likely to be successful applicants to the EU - the Czech Republic, Hungary and Slovenia. A spotlight is turned on the banking and financial industries, as they are crucial to the achievement of economic stability. The blend of expertise deployed, which draws on in-depth knowledge and extensive experience in central banking, financial and commercial law, business, practical policy making and economic analysis, ensures that this book is timely, relevant and insightful.

The authors suggest that the role of the state in both creating and maintaining an effective financial sector is central. Furthermore, they argue that well-regulated commercial banks and strategic foreign investors are a must as, in practice, the attempt to skip straight to modern capital markets has been ruinous.

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Financial Markets play an important role in economic development, channeling saving to investments and facilitating growth. In Eastern Europe financial markets were initially much underdeveloped, and lacked the skills and infrastructure they needed to be efficient, having not acquired them in the pre-transition era. The book offers a both theoretical and empirical analysis of financial markets in transitional economies. It investigates financial markets in Hungary, the Czech Republic, and Poland, and their role in the developments in the 1990s.

Transitional Economics: Banking, Finance, Institutions (Euro-Asian Studies)

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Transitional Economics: Banking, Finance, Institutions (Euro-Asian Studies)

Manufacturer: Palgrave Macmillan
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Binding: Hardcover

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The financial integration of the countries of Central and Eastern Europe and the Commonwealth of Independent States was arguably one of the most profound changes experienced by the world economy in the 1990s. This book examines these countries in reforming their financial systems in the fist decade of transition. Through case studies as well as more thematic approaches contributors deal with crucial elements of building a market based financial system, the transformation of the banking sector, and non-bank reform and regulation of financial markets. They emphasize the importance of institution-building to the process of financial sector transformation and highlight the lessons to be learned from transitional financial experiences.

E-money in Transitional Economies.: An article from: Comparative Economic Studies

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E-money in Transitional Economies.: An article from: Comparative Economic Studies
Aleksandar Stojanovic
Manufacturer: Association for Comparative Economic Studies
ProductGroup: Book
Binding: Digital

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This digital document is an article from Comparative Economic Studies, published by Association for Comparative Economic Studies on March 22, 2001. The length of the article is 7616 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Keywords: electronic money, payment systems, transitional economies

Citation Details
Title: E-money in Transitional Economies.
Author: Aleksandar Stojanovic
Publication: Comparative Economic Studies (Refereed)
Date: March 22, 2001
Publisher: Association for Comparative Economic Studies
Volume: 43 Issue: 1 Page: 101

Distributed by Thomson Gale

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Critical History.......2002-05-18

Professor Kinoy's persoanl account of legal struggles against reactionary forces in this country for over six decades is a chilling and inspiring antidote to forgetfulness. This book should be required reading in american history courses, especially now when opportunistic politicos and businesses once again exploit paranoia to keep civil rights and constitutional order under siege. Though Mr. Kinoy's style may sometimes seem repetitve, his book is an honest search for the answer to a question all too rarely asked: what can a citizen do, in the darkest of times, to help this country live up to its ideals?

A Great Book on Civil Liberties and the Law.......2001-04-25

Kinoy is an unsung American hero. Always willing to defend the underdog, he has sometimes overcome tremendous legal obstacles and emerged on top. This book chronicles his more well-known cases: the Rosenbergs, the Chicago Seven, Martin Luther King and the Montgomery Bus Boycott, Adam Clayton Powell, and many more. Why Kinoy isn't more well-known is a mystery.

A must-read for all public interest lawyers.......1999-04-06

In his uniquely humorous, heartfelt, and soulful voice, Kinoy teaches the reader about the behind-the-scenes battles fought by the legal workers of the US civil rights movement. Shocking stuff revealed as Kinoy packs a lot of information about judges, FBI agents, and freedom fighters in this can't-put-it-down book. If you are considering trying to use the law to achieve justice, you should read it. You should also join the National Lawyers Guild.

Rights On Trial The Odyssey of a People's Lawyer

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Rights On Trial The Odyssey of a People's Lawyer
Kinoy
Manufacturer: Bernel
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ASIN: B000WIXP3Y

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