There are strict requirements for retaining and managing IP data, but too many companies still regard storing these key assets as the IT department’s problem. CPA’s Jonathan Newcombe explains why you should take more of an interest in how you store and manage your IP rights

It wasn’t that long ago that IP professionals were managing corporate IP Rights via Excel spreadsheets or, at best, traditional docketing-focused databases. In our technology-rich age, such systems seem outmoded and potentially risky. And yet, while technology has revolutionised the way in which we work, it has also brought its own set of challenges, as traditional software systems struggle to keep up with greater business demands.

A mountain of data
In a high-pressured working environment, the need to access and transfer sensitive data is paramount. Emails, documents, presentations, databases, graphics, audiofiles and spreadsheets represent the lifeblood of most companies. In the IP department alone, key corporate assets are supported by a growing mountain of paperwork relating to registration, renewal, litigation, surveillance, licensing and finance. And that’s just the beginning: with web-based platforms, automatic renewal payments, and legal updates underpinning the transfer of key knowledge, today’s IP professional needs to be supported by sophisticated IT software if they are to keep on top of the administration of IP.

Although putting the right system in place can help companies to consolidate the work of their independent business units and increase productivity, it has to be tailored to meet the needs of the business if it is to be successful. Standardising a database platform, integrating data repositories and implementing company-wide software are all great initiatives, but if not implemented in a way that allows processes to consume information how and when needed, their effectiveness can be compromised. Many companies currently implementing systems have not yet thought about how content will be put to work in practice: Is the software user-friendly for the business as a whole? Is it tailored to befit the company’s structure and ways of working? Is the IP data safe and secure from human error, hardware failure or theft? Is it compliant with the rules and regulations for data storage? And is key information accessible to the right people when they need it most? The right information architecture is one that allows processes and people to consume information in the way they need it and via the most efficient channels. To really make a difference, it has to be developed to match business needs and processes, and it has to be flexible enough to support the business  as it grows and changes.

Supporting IP with IT
A company’s IT infrastructure tends to grow organically, as new databases and content repositories get added to fulfill a gap in storage or as part of a merger or acquisition (M&A). As a result, IP management systems tend to operate in silos, meaning that data is managed for the database or application it resides in, not the processes in which it will be consumed. This requires users to switch back and forth between software and interfaces, to replicate the entry of cases and names in more than one system, and to duplicate entries once again to set up billing. Such long-winded and time-consuming data-entry processes tie users up in the administration of IP, leaving them less time to concentrate on more important aspects of their role. For the sake of productivity, it is paramount for companies to eliminate the need for duplicate data entry and the process of switching between systems.

However, it’s not just a question of saving time. Failure to take care of information quality can lead to legal liability and, potentially, the loss of key IP Rights. The manner in which IP information is captured needs to be consistent and complete; otherwise, companies risk facing problems with data validation and reporting, particularly in M&A activities. Today’s IP management software aims to help eliminate human error, by uniting the data management of intangible assets in one centralised system.

Storage management companies estimate that our storage needs are rising by 60-70% each year. Emails alone represent 18MB of data each day and that number is expected to climb to 28MB by 2011 (Radicati Group, 2007)

By consolidating patent, trademark, design and domain name portfolios in one central database, employees working in various departments such as research and development (R&D), marketing and legal can each access information using a common interface.

But it also means that the data generated throughout the life cycle of their IP assets – be it documents, comments from outside counsel or licensing agreements – can be kept in one location, accessible to all. To IP professionals, this makes perfect sense. After all, IP portfolios are rarely one-dimensional; key information on patent, trademark, domain names and other forms of IP invariably interlink between asset classes, business units and company offices. In this context, IP management is central to business strategy, and as the IP industry evolves, so too must the software that is used to manage it. IP can then truly be used to make informed business decisions.

Software as a service
Of course, it isn’t just external business units that need access to key IP data; as companies increasingly turn to their intangible assets to increase corporate revenue and market success, the IP department also needs to provide key information to company stakeholders. All this is contained within the databases that manage a company’s IP Rights.

Although IP docketing systems hold a wealth of important information, the challenges for many organisations lie in the ability to turn volumes of data into actionable business insight. Fortunately, the latest generation of IP software incorporates key reporting and data-mining functionality. Not only does this make producing sophisticated status reports a routine activity rather than a time consuming, labour-intensive operation, it can also facilitate corporate IP audit maps and patent planning, enabling companies to systematically and efficiently assess and quantify their portfolios based on, for example, geographic coverage and the competitive landscape.

Similarly, by charting the costs and revenues associated with IP, they are better placed to measure the return on investment for each right. Law firms, in turn, can benefit from audits assessing staff productivity, billing and workflow. The right IP management software can help to answer common questions faced by law firms looking to increase efficiency and productivity in a highly competitive environment. For example: How much work is coming through? Are the resources in place to manage it? Are client deadlines being hit? And, is each hour worked being billed efficiently?

Ultimately, the decision of which software to use and the level of functionality to incorporate is very much dependent on the business itself. But as our business culture turns increasingly to knowledge and innovation to provide the cornerstone of company success, it’s clear that the days of docketing IP Rights on Excel spreadsheets are long gone. The IP software industry is evolving alongside business to meet its needs for data storage and advances in functionality are already paying dividends. The next generation of services should make this even easier.

To find out how IP management software can help your business, visit www.cpaglobal.com/software or email jnewcombe@cpaglobal.com.


STEPS TO DATA WISDOM
Management decisions can only be as informed as the data that they are based on. Without secure administration and the placement of professional data management strategies, how can you be sure that the data that is driving corporate decisions is accurate? Here are five key reasons why data is management’s concern:

1. Security
You may already have your entire company’s data neatly digitised, but what if the
technology goes wrong? Significant data loss risks putting a company out of business or, at best, setting it back a couple of years. Sophisticated software systems can help companies manage their IP with the minimum of risk, so long as appropriate back-up functionality is in place to protect against system failure or theft.

2. Compliance
Ever-stringent rules are in place to compel organisations to keep more of their records for longer periods, for example in the US where the Sarbanes-Oxley Act of 2002 defines clear guidelines for storing data.

3. Deadlines
Importantly for a global company with multiple registrations and renewals, IP software needs to incorporate patent and trademark laws to ensure that vital deadlines are being docketed and monitored. Good IP management software will provide law updates and remind and monitor impending deadlines.

4. Accuracy and risk
It’s not unusual for a company to use multiple databases to manage its products and services, but a system is only as good as the data it holds. Inconsistent and incomplete records can be a data-management nightmare and can seriously impact on key IP Rights.

5. Productivity
Streamlining IP management can pay considerable dividends for busy in-house counsel. Without the administration of IP to worry about, they are able to concentrate on higher value tasks.


This article first appeared in IP Review, issue 19

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