IP is undervalued, underinsured – and COVID-19 will make matters worse: Aon
Intellectual property (IP) is misunderstood, undervalued, underinsured, and underappreciated as a source of significant enterprise value – a situation only likely to get worse as companies face new IP-based threats and challenges as a result of the COVID-19 pandemic.
That was the conclusion of a report by the Manufacturers Alliance for Productivity and Innovation (MAPI) and Aon called ‘Beyond Patents: IP Strategy, Valuation, and Management in Manufacturing’, which delves into the current state of IP in the sector.
The report found that most companies (75 percent) have centralised IP strategies, but there is room for improvement, particularly in the largest organisations. It also found that the business case remains supreme in demonstrating return on investment and getting support for IP management.
Additionally, it noted that risks are rising rapidly. Sixty percent of manufacturing leaders, before the COVID-19 pandemic, expected IP risk to increase in the next two years. And, over half have reported experiencing an “IP event” in the past two years. Meanwhile, only 25 percent of manufacturing leaders say their company is leading in IP management practices.
“Given the current uncertainty, it is critical for businesses to understand that their IP is one of their most valuable assets that retains significant value through recessionary periods,” said Lewis Lee, CEO of intellectual property at Aon.
“As companies grapple with evolving business models particularly to face unprecedented disruption, they must find ways to best leverage their IP assets to add liquidity, deflect potential IP-based risks, and protect a re-imagined post-crisis future. This research provides a strategic roadmap for intellectual property management.”
David Beckoff, vice president of research, MAPI, added: “The research found that many manufacturing companies have a solid process to protect patented information. However, with competition, a newly remote workforce, and the proliferation of technology and services today, the possibilities for trade secrets are rising. This report provides a structure for manufacturers to improve their organization’s resilience in protecting intellectual property.”
