Case Studies
State-of-the-Art technologies create new companies and eliminate existing ones.
This used to happen especially when there were no communication channels to deliver timely information about new developments to the decision makers of established companies. Investors relied on the size and wealth of those companies. Owners and shareholders were satisfied with the current market position. Management believed that nothing could hurt them and the future was somehow secure. But history has taught us a different lesson.
Here are some examples to keep in mind when you are trying to assess and protect your own innovation power, and the value of the related intellectual property.
- Out of the 10 biggest companies in the USA in 1900, only one company still existed in the 1970s: General Electric. All others were unable to deploy their enormous wealth to secure their future via innovation strategies.
- In Germany, consumer electronics companies used to be a flourishing industry with many technology leaders, billions in revenue and hundreds of thousands of employees. It took just 20 years from their peak in the 1970s to their elimination. The main reason was a lack of innovation power and cost-efficient processes.
- In the fall of 2012, Nokia had a market cap of US$8bn although the company’s financial situation was extremely weak. The value of its patent package amounted to US$14bn. This “war chest” saved them from having to face an existential crisis at that time.
- IP can represent incredible value. Ten years ago, the trade mark “Red Bull” was worth approximately US$12bn or around 90% of the entire value of Red Bull.
- Nortel Networks sold a patent portfolio to a consortium including Apple, Microsoft, and Research In Motion for US$4.5bn.
- After Google had lost out on the Nortel patent deal, they purchased a Motorola patent portfolio for more than US$14bn.
Quotes on brainmate
“Nothing is as unclear as the future. There are many tools for forecasting and sketching a scenario of upcoming changes in the competitive landscape. They all suffer from a lack of precise information. Probably the only perfectly accurate instrument is an analysis based on the research of the patents that have been granted up to today. Nobody spends a lot of money on a patent if he is not willing to commercialize it.”
Dr. Péter Balas
Deputy Director-General for Trade, European Commission
“The business concept of brainmate is simply an excellent solution for the industry!”
Prof. Ruslan Grinberg
Director, Institute for International Economic and Political Studies, Russian Academy of Sciences