Learn about some common pitfalls and risks of managing a large and diverse invention portfolio, and how to overcome them with practical tips and best practices.

Resource allocation challenges may arise, requiring a focus on high-potential projects. Intellectual property risks and disputes demand thorough patent searches and legal diligence. Market dynamics and budget constraints pose threats; adapt portfolios strategically and secure adequate funding. Communication challenges among diverse teams necessitate robust channels. Balancing short-term gains with long-term innovation goals is essential for success.

My personal belief is that a huge amount of money is wasted on international patent filings. As an economic instrument, a patent’s value is defined by a jurisdiction’s enforcement infrastructure. I have seen business people file in many countries without considering what they can do if someone infringes their patent in that jurisdiction. If a jurisdiction does not have a consistent track record of enforcing patents that are in a relevant technology and owned by foreign entities, then what is the point? I am not saying to stop filing internationally, just look at the legal context before investing. If you are going to pay another country for rights, they better be ready to make it worth your investment. Unfortunately, most countries don’t.

What are some of the common pitfalls and risks of managing a large and diverse invention portfolio?

Managing a large and diverse invention portfolio can be a challenging and rewarding task for any organization. However, it also comes with some potential pitfalls and risks that need to be carefully avoided or mitigated. In this article, you will learn about some of the common issues that can arise when dealing with a variety of inventions across different domains, stages, and markets, and how to overcome them.

1 Aligning with business goals

One of the first pitfalls of managing a large and diverse invention portfolio is losing sight of the alignment between the inventions and the business goals of the organization. Inventions should not be pursued for their own sake, but rather for their potential to create value, solve problems, and meet customer needs. Therefore, it is essential to have a clear and consistent strategy for evaluating, prioritizing, and selecting inventions that support the vision, mission, and objectives of the organization, and to communicate this strategy to all the stakeholders involved.

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dominique hoppe

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Resource allocation challenges may arise, requiring a focus on high-potential projects. Intellectual property risks and disputes demand thorough patent searches and legal diligence. Market dynamics and budget constraints pose threats; adapt portfolios strategically and secure adequate funding. Communication challenges among diverse teams necessitate robust channels. Balancing short-term gains with long-term innovation goals is essential for success.

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Andrew Konstantaras
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I agree that keeping business goals as the driver for all portfolio decisions is critical to a successful portfolio, but I believe a broader view should be taken when assessing which inventions to pursue. Some of the most valuable patents are not immediately recognized as such because they are creating something entirely new and they may require a future infrastructure that few, if any, can foresee. These are high risk patents. Inventions that meet an immediate and obvious need are, I believe are low risk and high value. I would characterize the inventions for the foreseeable future as medium risks. Like stock portfolios, a patent portfolio should have assets with a distribution of risk that are consistent with the defined goals.

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2 Balancing quality and quantity

Another common pitfall of managing a large and diverse invention portfolio is focusing too much on either quality or quantity, without finding the right balance. Quality refers to the novelty, usefulness, and feasibility of the inventions, while quantity refers to the number and variety of the inventions. Both aspects are important, but they can also create trade-offs and conflicts. For example, pursuing too many inventions can dilute the resources and attention available for each one, leading to lower quality and reduced chances of success. On the other hand, pursuing too few inventions can limit the opportunities and options for innovation, leading to stagnation and obsolescence. Therefore, it is important to have a robust and flexible process for managing the quality and quantity of the inventions, and to adjust it according to the changing needs and conditions of the organization and the market.

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Andrew Konstantaras
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When I hear “large” and “diverse” I think expensive to maintain and difficult to monetize. In my opinion, portfolios that are built around coherent technology themes are far more interesting and valuable then something described as large and diverse. If those are the adjectives one uses to describe a portfolio, then I expect to find a lot of patent lint as I go through the patents. There are many good reasons to keep a family alive, but after a point, the size of the family detracts from the value. Litigating an asset from a huge family can be very expensive and risky. Portfolio architects should be building quality clusters of patent families that can be used together in the only place that matters, a court of law.

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3 Protecting intellectual property

A third common pitfall of managing a large and diverse invention portfolio is failing to protect the intellectual property (IP) rights of the inventions. IP rights are the legal rights that grant the owner of an invention the exclusive right to use, make, sell, or license it, and to prevent others from doing so without permission. IP rights can be in the form of patents, trademarks, copyrights, or trade secrets, depending on the nature and characteristics of the invention. Protecting IP rights is crucial for securing the competitive advantage, reputation, and revenue of the organization, and for preventing infringement, imitation, or theft by competitors or other parties. Therefore, it is important to have a comprehensive and proactive strategy for identifying, registering, enforcing, and monetizing the IP rights of the inventions, and to seek professional advice and assistance when needed.

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Andrew Konstantaras
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This section seems out of place. By changing the focus to all IP, I believe the paragraph becomes an adage without providing insight to the specifics of a patent portfolio. Patents are not self-enforcing, they only give the owner the right to stop others from using technology covered by the patent. Therefore, if you want to use your large and diverse portfolio you must be ready to assert your patents or find someone that is willing to cover the cost of asserting. If you are not selling the patents to a third party, you need to be ready to go to court and that is not cheap. Not only are patent lawsuits expensive, they can take a very long time to get to a final decision. Portfolios without an enforcement strategy are not good investments.

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4 Managing complexity and uncertainty

A fourth common pitfall of managing a large and diverse invention portfolio is being overwhelmed by the complexity and uncertainty that come with it. Complexity refers to the degree of interdependence, variability, and unpredictability of the elements and factors that affect the invention process, such as technologies, markets, regulations, customers, competitors, partners, and so on. Uncertainty refers to the lack of information, knowledge, or confidence about the outcomes and consequences of the invention process, such as feasibility, viability, desirability, and impact. Complexity and uncertainty can create challenges and risks for managing the invention portfolio, such as delays, errors, conflicts, failures, or surprises. Therefore, it is important to have a systematic and adaptive approach for managing the complexity and uncertainty of the invention portfolio, and to use appropriate tools and methods for planning, monitoring, evaluating, and learning from the invention process.

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5 Fostering collaboration and diversity

A fifth common pitfall of managing a large and diverse invention portfolio is neglecting the role of collaboration and diversity in the invention process. Collaboration refers to the act of working together with others to achieve a common goal, while diversity refers to the presence of different perspectives, backgrounds, skills, and experiences among the collaborators. Collaboration and diversity can enhance the invention process by bringing more ideas, insights, feedback, and resources to the table, and by stimulating creativity, innovation, and problem-solving. However, collaboration and diversity can also create challenges and risks for managing the invention portfolio, such as communication gaps, cultural clashes, power struggles, or groupthink. Therefore, it is important to have a supportive and inclusive culture for fostering collaboration and diversity in the invention process, and to use effective strategies and practices for managing the potential conflicts and synergies that may arise.

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6 Leveraging external sources

A sixth common pitfall of managing a large and diverse invention portfolio is ignoring or underutilizing the external sources that can contribute to the invention process. External sources refer to the entities or resources that are outside the organization but can provide valuable input, support, or opportunities for the invention process, such as customers, suppliers, competitors, research institutions, universities, consultants, investors, or media. External sources can complement and augment the internal capabilities and resources of the organization, and can help to identify needs, trends, gaps, or solutions that may not be apparent or accessible otherwise. However, external sources can also create challenges and risks for managing the invention portfolio, such as dependency, leakage, or competition. Therefore, it is important to have a strategic and selective approach for leveraging external sources in the invention process, and to establish clear and mutually beneficial relationships and agreements with them.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Andrew Konstantaras
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My personal belief is that a huge amount of money is wasted on international patent filings. As an economic instrument, a patent’s value is defined by a jurisdiction’s enforcement infrastructure. I have seen business people file in many countries without considering what they can do if someone infringes their patent in that jurisdiction. If a jurisdiction does not have a consistent track record of enforcing patents that are in a relevant technology and owned by foreign entities, then what is the point? I am not saying to stop filing internationally, just look at the legal context before investing. If you are going to pay another country for rights, they better be ready to make it worth your investment. Unfortunately, most countries don’t.

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What are some of the common pitfalls and risks of managing a large and diverse invention portfolio?

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1 Aligning with business goals

2 Balancing quality and quantity

3 Protecting intellectual property

4 Managing complexity and uncertainty

5 Fostering collaboration and diversity

6 Leveraging external sources

7 Here’s what else to consider

Invention

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