[September 17, 2003] The Ultimate Pot Of Gold: The Patent Portfolio BY DR. ZVI YANIV Science, ideas and the engineering of new applications within the walls of corporate America is accelerating the advancement of many bleeding-edge technologies – including biotechnology, nanotechnology and energy. Innovation in and of itself is an industry and mainstay of leading corporations. In the 19th and early half of the 20th Century, it was often the sole mandate of a single organization to not only invent its application, process and technology, but to commercialize it and take it to market. Science, however, has advanced at such lightening speed over the last hundred years, that a deep degree of specialization is required to advance a single component of a multifaceted technology. Throughout the past thirty years, there have been a series of legal changes, court decisions, legislative and administrative actions, and international agreements that have extended and strengthened intellectual property rights. The solidification of patents has enabled corporations to capitalize on its own exploration, furthering both the market segment and science in general. Intellectual property has become its own revenue generating engine. The machinery is comprised of the laboratory, computer and individual minds, supported by the highly-sophisticated concept of a proven sequence or application. The success of many technology-based companies inherently depends on the strength of its intellectual property. As the patent process and market need for patents has increased, so have the earnings associated with patents. For the fiscal year 1990, Texas Instruments Corp. reported revenues from patent royalties exceeded its revenues from manufacturing. This is significant considering that Texas Instruments is a manufacturing company – not a contract research laboratory. DuPont earned more than $380 million in 2001 through the licensing and sale of intellectual property. And IBM has added $10 billion in royalties from licensing since 1993. These companies, along with many other organizations, have helped lead the way in converting innovation into profit centers. Today analysts and investors actively evaluate companies based on the depth, sophistication and marketability of their patent portfolios. Company valuations, tax advantages, and increased starting price per share when taking a company public - patents on intellectual property are key components in determining success. Developing a strong and highly marketable patent portfolio offers a number of strategic business and creative advantages. The exclusive nature of the patents is particularly valuable for the emerging company that is developing new technology and establishing a market presence. Emerging enterprises can essentially shut-out competitors from specific, niche market segments based on a single patent. Expanding on technology advancement requires a competitive organization to deeply specialize in a segment. The distance is generally too complex to bridge within several months or even years. Thus, heavy hitting patents clearly define and forward core strengths of an organization in a tangible capacity. ENTER NANOTECHNOLOGY Nanotechnology promises to alter people's lives as radically in the next century as did electricity, telecommunications, and the automobile in the twentieth century. The specialization inherent to developing new applications has attracted leading scientists and engineers to the corporate stage to push the envelop in nanotechnology. The potential patents detailing highly sophisticated processes core and essential to the furtherance of nanotechnology and its application in multiple industry segments, is tremendous. Applied Nanotech, an Austin, Texas-based nanotechnology research and development company that produces innovative discoveries of commercial value, is continuing to expand on the development of its patent portfolio to establish a broad leadership position in the field of nanotechnology. Applied Nanotech has broadly staked out the territory attainable from their core inventions. With a central focus on R & D, Applied Nanotech’s directive is to identify technologically advanced applications and processes in and applicable to the nanotechnology field. The company continues to leverage its leadership in innovation by strategically identifying and securing patents that are applicable to worldwide markets will lead to unprecedented products in electronics, biotechnology, medicine, transportation, agriculture, environment, national security and other fields. Applied Nanotech recently announced the issuance of a patent that covers the use of carbon nanotube field emission cathodes. Field emission cathodes are used, for example, in field electron microscopes, electron accelerators, high-power switches and field emission diodes, and field emitter arrays for vacuum microelectronics. The result of this allowance combined with Applied Nanotech’s other key patents puts the company at the forefront of the carbon nanotube field. Although nanotechnology is in its infancy, the use of carbon nanotubes in cathodes is already finding its way into diagnostic equipment and display prototypes. Other organizations in the chain of making or using carbon nanotubes as electron emitters, regardless of the application, are potential licensees. By receiving this notice of allowance, Applied Nanotech possesses one of the most robust patent portfolios in the carbon nanotube and field emission industries. REALIZING THE POTENTIAL Applied Nanotech took a unique approach. The firm chose to identify and focus on strategically important applications for very large markets where nanotechnology plays an important role following the nanotechnology food chain. They found this approach changed the way they thought about innovation. Rather than trying to find markets for new technologies, they were devising new technologies for the express purpose of driving value in specific markets. They also found that applying discipline to the creative process did not hinder creativity – rather it channeled it in the right direction so the desired result, e.g., valuable and patentable technologies, could more likely be achieved. When linked with management vision and leadership, intellectual property can be extremely profitable. By aligning intellectual property strategies with R&D and with other business functions, IP becomes the driver across the organization, resulting in more carefully targeted product development, marketing, and sales. Of course, it doesn’t happen overnight. Or does it? Dr. Zvi Yaniv is CEO of Applied Nanotech, Inc, a subsidiary of Nano-Proprietary, Inc. Through Applied Nanotech, Nano-Proprietary has an extensive intellectual property portfolio in the field of nanotechnology and a well-trained and well-managed nanotechnology research and development team. Their patent portfolio includes multiple fundamental claims for carbon nanotubes field emissions cathodes, which enables the company to further control critical components of nanotechnology, and advance its commercial vision of the technology. Currently Applied Nanotech is in advanced development for the application of electron emitting carbon nanotubes cathodes in a number of areas, including large area color televisions, new lighting devices, x-ray, and microwave generators. [ Back To TMCnet.com's Homepage ]