By granting non-exclusive licenses, generous revenue is produced. Cross-license agreements provide a corporation with both a revenue stream as well as access to patented technology produced by others. A solid patent portfolio also provides investors with the peace of mind that their money is being spent on a winning business model. A well-managed intellectual property portfolio, with adequate patent protection, boosts the value of a company during merger and acquisition discussions. Even the process of conducting patent searches can ultimately prove beneficial.
Companies save time and effort pursuing product ideas that are already patented.
They are motivated to improve on patented products with their own initiatives. Finally, patent searches serve as a warning on what type of initiatives to avoid in order to sidestep potential infringements. In many ways, the recent hype surrounding Internet stocks is being replicated in the patenting arena. Patent any and every software function or business model, current thinking goes, and your company will be rolling in money. Rob Graham comments that there is a general mentality in today's marketplace that if a company does not act aggressively and file patents, then their competitors will grab that space.