Texas ranks second only to California with 12.8 percent of the patents and 12.2 percent of the useful life of the patents of companies surveyed. Figure 5 suggests that there is a connection between intellectual property and sales. Although Michigan appears to be an anomaly, due to the three major auto manufacturers, California and Texas follow in second and third place, based on percentage of sales. This research and development will, in turn, generate future patents and other intellectual property rights. Conclusion Intellectual property is quickly becoming the most coveted asset for many companies.
Companies can also create a significant stream of revenue through licensing.
Licensing is an excellent way for companies to leverage the value of fully used intellectual property, recoup research and development spending and create shareholder value. The authors thank Paul Benoit from the Austin Financial Advisory Services group of Price Waterhouse LLP for his contributions to the research for this article. Common Forms of Intellectual Property Rights Utility patents generally apply to mechanical, electrical, or chemical inventions, which encompass processes, machines, articles of manufacture, or compositions and improvements of matter. Design patents apply to the aesthetic or ornamental appearance of products. Copyrights are granted for any original works of authorship fixed in any tangible form of expression.