Messaging intellectual property (IP) to C-levels, including CEOs

By the nature of their position, C-levels have a different language from the rest of us. Often referred to as “C-speak” or “CEO-speak”, it is usually directed to any of the following priorities: growth, technology and workforce (Gartner), securing capital (Bain & Co.), reducing security risk (CIO), generative AI (see here and here), share performance (if a public company). If it doesn't relate to any one of these priorities, will the message be heard?

Where does IP stand?

Though IP can make up a substantial part of business’s value and is considered to be important by most C-levels, IP is often (and incorrectly) treated as a legal issue that falls under the duties and responsibilities of either a Chief Legal Officer (CLOs) or a Chief Financial Officer (CFO). Research indicates that they may not be involved in IP-related discussions, as they are kept (or siloed) within an IP department (see: here, Deloitte 2023), which is rarely called upon to interacts with the Chief Executive Officer (CEO).

Would you want your IP and business strategy to be run by a legal or accounting team? 

Most likely the answer is “no” for a number of reasons:

1. Legal and accounting teams aren’t adapted to make IP-related decisions, or align IP and business strategies together

   1. They may not have the technical expertise to understand the technology, or how the technology provides a competitive advantage, technological advancement or other advantage; 

   2. Accounting and legal teams look at risk differently from other business units. Indeed, “At its heart, the legal team exists to ensure that accountable decisions are taken at the right level and function in the organization, and that the individuals making those decisions are suitably informed about the level of legal risk inherent in them. Contracts, advice and training are an in-house lawyer's way of helping the business to keep its legal risks at tolerance” (see: here). Accounting teams are responsible for monitoring and organizing a company's finances, as well as managing an organization's budget, taxes, financial welfare, as well as financial risk. 

2. IP is an economic and business asset. Revenue can be generated from this asset class (HBR, 2000) and be further used as collateral to finance innovation (WIPO). It can have an effect on a business's bottom line, and improve its competitive position in the relevant market(s), old and new in different territories (e.g., export markets) (Damodaran).

3. CEOs transform, and have the ability to align strategies. This belongs to the person in the chair, the (CEO). CEOs are responsible for creating vision, expanding the company, driving profitability, and improving share prices in the case of public companies. The CEO manages the overall operations of a company, and “can influence 45% of company performance” (see: Bradley et al.). 

4. C-levels can enhance IP strategy and its performance (MIT, 2007). This can be done in many different ways, including adoption of a governance framework (see: here).  

Yet, IP and intangible assets interact with nearly every C-level priority in one shape or form

1. Technology. Competitor IP reviews; assessing in-house IP against those of others (e.g., SWOT analysis) and other performance metrics, business objectives and milestones.

2. Growth. This is usually demonstrated by the amount of revenue generated from a particular IP asset, which sometimes requires more financial data relating to “internally generated intangible assets” (IA/IP assets), if collected.

3. Workforce; security risk reduction. This includes what measures are being taken to educate the workforce on IP-related issues; ensuring business IP ownership on internally generated intangible and IP assets; mitigating risk of IP theft.

4. Securing capital. IP can be used as collateral (e.g., security, lien, hypothec) in various financing agreements, including IP-backed financing, IP-insured lending agreements, as well as other facilities. 

5. Generative AI. This means de-risking the use of business information to train AI models as well as copyright infringement, amongst other risks associated with the use of generative AI. 

Improving communication

In addition to speaking “C-speak”, MVIP assists business units dealing with IP to properly present IP-related information to C-levels, with a focus on maximizing value (e.g., increasing ROI and supporting business objectives and milestones). This can be done in a variety of ways, for instance: creating an internal transformation management office (TMO); using our “special teams” project managers to coordinate projects with C-levels, as well as creating custom strategies and roadmaps that capture value creation efforts and efficiencies.

Contact us for more information.