Making intellectual property portfolios attractive to venture capitalists

Intellectual property (IP) rights, especially patents, often are a cornerstone for building a company. Not only do IP rights provide an avenue for entry into a marketplace, they facilitate raising the capital required for the company’s development and growth. Venture capitalists frequently look for early-stage companies or raw ideas that have commercial potential, provided that adequate IP rights have been or can be secured to protect the underlying business. Because IP rights can play a substantial role in the success of the business, an attractive IP portfolio can increase the likelihood of investment.

Accordingly, from its infancy, a company seeking funding should consider strategically creating an IP estate. Following good IP practices from the outset can ease the preparation and organisation involved in marketing the business to investors and subsequent due diligence inquiries, which have become increasingly more thorough. Therefore, important considerations to keep in mind while building a business include developing a portfolio of IP rights protecting the business, which may include licences and other agreements; establishing the ownership of those rights; and avoiding infringing upon the IP rights of third parties.

Michael H Brodowski, PhD
Testa, Hurwitz & Thibeault, LLP, Boston, MA

Full Story: http://www.buildingipvalue.com/05_NA/159_162.htm

*********

Many thanks to Jeffrey M. Heutmaker of HeutmakerLaw, pc http://www.heutmakerlaw.com/ for passing this along. – Russ