Small and Mid-Sized Companies Have a Larger Share
of Their Assets in the Form of IP and Intangibles
Everyone knows that IP and intangible assets form a major aspect of corporate value at all companies today. What might not be readily recognized is that small and mid-sized companies likely hold a greater share of their value in the form of IP and other intangible assets than do their larger competitors because they are less likely own a significant base of tangible assets, such as equipment, real estate and the like. Indeed, for many smaller organizations, almost all corporate value may exist in the form of IP and intangibles. Few of these companies give their greatest asset suitable attention, however, and this is a problem.
Today, Lack of IP and Intangible Asset Strategies
Puts Smaller Companies at a Distinct Disadvantage
Many large companies put considerable attention to their intangible assets as is apparent from their hiring of one or more in-house IP counsel. In fact, in-house IP counsel staffing at large companies has actually increased in recent years as IP and intangible assets have become of greater importance to businesses. Given the obviously greater significance of IP and intangible assets to large companies, small and mid-sized companies arguably are disadvantaged in building corporate asset value today. Put simply, IP and intangible asset value does not exist unless its corporate owner captures it in some form. As such, it is critical for small and mid-sized companies to develop and execute on business processes that allow them to identify, measure and realize this otherwise nonexistent business value.
IP and Intangible Asset Management:
They Don’t Teach it in B-School and Why This is a Problem
The undeniable significance of IP and other forms of intangibles to most small and mid-sized companies requires their management teams to actively manage these assets in order to properly protect and maximize shareholder value. However, this is easier said than done: most business professionals do not possess the necessary skills to do so because, quite simply, IP and intangible asset management is something that has not normally been taught in business school. Business leaders therefore typically relinquish responsibility for IP and intangible asset management to their legal counsel.
Most business leaders would acknowledge that in-house legal representation provides the most strategic and business-focused form of counseling. However, relatively few companies can afford to hire general legal counsel, let alone specialized IP counsel. And, even if they could afford it, most would not have enough work to keep justify engaging employing full-time to handle a fairly discrete number of IP and intangible asset matters.
The obvious alternative is for management to engage outside counsel on an as-needed basis. However, outside counsel representation rarely provides an effective substitute to having full-time in-house counsel who can proactively identify IP and intangible-related opportunities and risks. The cost of hiring experienced outside IP counsel at a typical cost of several $100′s an hour, can also make it difficult for some small and mid-sized companies to regularly engage outside IP counsel.
The Hutter Group’s Strategic IP and Intangible Asset Counseling:
A New Part-Time Model for Small and Mid-Sized Companies
The Hutter Group provides small and mid-sized organizations with strategic IP and intangible asset counseling at a fraction of the cost of hiring a full-time in-house IP lawyer or obtaining ongoing representation from IP lawyers of comparable experience. Our counseling model allows small and mid-sized companies to engage us either on a monthly retainer basis or on a reasonable per hour basis. We work in a virtual setting so clients pay only for the legal advice obtained. As such, our clients do not pay for “extras” that do not add to the quality of IP advice, such as fancy offices, staff and associates. The Hutter Group’s client service model is also based on value provided, not number of hours billed, which allows us to provide strategic advice in a typically short turnaround time that allows business to move forward without “waiting for the lawyer to get back with the right document and advice.”
Also, like in-house IP counsel, The Hutter Group’s interests are totally aligned with that of our clients. This means that we can provide advice focused on identifying IP and intangible asset creation opportunities in a risk-appropriate manner. Put simply, The Hutter Group put the focus on our clients’ business opportunities and risks, not our own. This results in The Hutter Group’s counseling being uncommonly pragmatic as compared to other experienced IP and intangible asset counseling that occurs outside of the in-house setting. Such real-world advice can put small and mid-sized companies can put in the same IP and intangible asset management league as today’s best-in-class companies.
If you are a leader at a small or mid-sized company and are ready to get serious about your organization’s IP and intangible assets, contact Jackie Hutter at 404-797-8124 for more information regarding The Hutter Group’s Strategic In-House IP Counsel representation.