Maximizing Value By Protecting Your Intellectual Property Assets ? Introduction

In the mid-1970?s, the market value of tangible assets of S&P 500 companies far outstripped the value of intangible assets, including intellectual property (e.g., 83% tangible assets v. 17% intangible assets).1 By 2005, the picture was quite different. By that time and continuing to 2010, S&P 500 companies? market value of intangibles was about 80%, with tangible assets accounting for only 16% of market value.2 This swing highlights the importance in today?s world of understanding intellectual property rights and varying strategies and options for protecting them. This paper discusses intellectual property rights particularly patents and trade secrets, specifically: 1) types of intellectual property; 2) choosing the mode of intellectual property protection; 3) obtaining patent protection; and 4) using patents as a sword versus a shield.