Innovation is often achieved by expanding on prior innovations. As many Denver business owners know, once a new technology hits the market other companies will try and improve upon that technology, innovation breeds innovation just like necessity is the mother of invention, as the saying goes. And now a company's ability to build on the innovations of others just got easier. Introducing the IPXI - a new intellectual property exchange, which provides a one-stop place to sell, buy or trade intellectual property and patent rights.
The Intellectual Property Exchange International Inc. is the first-ever financial exchange dealing exclusively with intellectual property rights. For small startups and large corporations alike, obtaining a patent can be critical to the protection of new product developments and processes and often significantly contribute to the company's value and assets.
Some major companies with extensive intellectual property assets, such as Ford, Sony and Phillips, are already involved in the exchange as corporate founding members. A total of 27 organizations, including the Department of Energy national laboratories, a collection of leading intellectual property law firms and research universities and institutions, have already joined the exchange. Trading is expected to being in the very near future.
The IXPI will change the way patents are both traded and licensed by letting companies buy or sell patent rights as units. A unit license can be bought or sold for a one-time use in a product or technology, or in bulk for those who want to incorporate a specific technology into several products. If, for example, Ford wants to incorporate a Sony owned patent into 20,000 cars, it can purchase a 20,000-unit license from Sony. The process will help company's avoid expensive litigation by opening up the access to a wide range of patents.
For many companies, obtaining a patent for their innovative technology is crucial to their future growth and prosperity. Licensing patents can be equally important for a company to survive. Using a patent attorney can be invaluable to ensuring your patent application is successfully written and submitted. And now with the IXPI, companies have a place to go to either sell, license or purchase the rights to use a patent that is on the market. Now that's innovation!
Source: The Huffington Post, "New Intellectual Property Exchange Streamlines Patent Trading," Robert F. Brands, July 10, 2012
Our Denver, Colorado business law practice provides patent and intellectual property legal counsel to small and large domestic and international businesses.