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IP Strategy for Executives

How much budget should be allocated to IP?

There is no one-size-fits-all answer, but typically tech companies allocate 1-3% of R&D budget to IP protection. The strategy session helps you determine the optimal spend: prioritizing key markets and core technologies while cutting costs on non-essential assets to maximize ROI.

Can IP strategy help in entering new markets?

Absolutely. Before entering a new country, you need an FTO (Freedom to Operate) analysis to ensure you don't infringe local rights. A proactive filing strategy secures your brand and technology beforehand, preventing local squatters from blocking your entry or demanding ransom.

What is the role of IP in M&A deals?

In M&A, IP is often the most valuable asset. A strong, clean IP portfolio can significantly increase the acquisition price. Conversely, IP risks (e.g., pending lawsuits, weak ownership chain) can kill the deal or lower the valuation. Executives need to prepare the IP portfolio for due diligence well in advance.

How to foster innovation culture in the company?

An executive's role is to incentivize innovation. We advise on implementing internal policies: invention disclosure rewards for employees, regular IP mining sessions, and clear ownership rules. This ensures that valuable ideas generated by staff are captured and owned by the company.

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IP Strategy for Executives is a high-level consulting and educational service designed for company managers, directors, and founders. Traditionally, Intellectual Property (IP) was perceived as a narrow legal issue, but in the modern economy, it is a strategic business asset. Executives need to know how to use IP to gain a competitive advantage, increase revenue, and boost the company's market value. This course/service helps management make informed decisions: what to patent, where to expand the market, and how to monetize innovations.

What the IP Strategy Service for Executives Covers

Experts on Legal.ge work directly with decision-makers:

  • Role of IP in Business Models: How to turn intellectual property (patents, brands) into a revenue source (licensing, franchising).
  • Budgeting and Investment: Optimizing IP portfolio management costs and evaluating Return on Investment (ROI).
  • Risk Management: Forecasting legal attacks from competitors and developing defense strategies.
  • M&A and Exit Strategy: How properly formalized IP assets increase the company's sale price during negotiations with investors.
  • Competitive Intelligence: Using patent databases to decipher competitors' technological plans.

Practical Examples and Scenarios

Strategic vision is crucial:

  • Export Expansion: A CEO plans to enter the European market. A strategic session reveals that the company's brand is already taken there. Decision: Rebrand before exporting, saving millions in marketing.
  • Patent vs. Trade Secret: A CTO faces a choice—patent a new algorithm or keep it a trade secret. Strategic analysis shows that a patent would publish the technology, while infringement would be hard to detect. Decision: Keep as a trade secret.
  • Attracting Investment: A startup is entering a Series B round. Investors demand an IP audit. A pre-prepared strategy shows the investor that the company holds levers to monopolize the market.

Georgian Legal Framework

Executive responsibility is defined by the Law of Georgia on Entrepreneurs. A director has a "duty of care," which implies protecting and reasonably managing company assets, including intangible ones. Neglecting IP strategy can lead to asset devaluation, which raises the issue of director liability. Furthermore, competition legislation restricts the abuse of a dominant position through IP rights, which management must take into account.

The Process: Strategic Session

Work proceeds in a consultation and workshop format:

  1. Business Diagnostics: Studying the company's goals and existing IP portfolio.
  2. Strategic Session: A meeting with management to discuss market trends and IP opportunities.
  3. Roadmap: Outlining specific steps for a 1-3 year period (registration, licensing, enforcement).
  4. Monitoring: Quarterly meetings to adjust the strategy.

Why Legal.ge?

IP strategy is not just for lawyers; it is a tool for business leaders. Legal.ge gives you access to high-level consultants experienced at the intersection of business and law. Find a strategic partner on Legal.ge and manage your company's intellectual capital effectively.

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Specialists for this service

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