Michael D. Moberly July 28, 2017 email@example.com A business intangible asset blog where attention span really matters.
One of numerous unfortunate realities which can occur before, during, or immediately following transaction execution is that one of the parties’ will learn – find the intangible assets being bought, sold, traded, or transferred, etc., have been infringed, misappropriated, and/or asset value undermined and (value, competitiveness) erosion has already commenced. Of course, should either (or, each) occur un-abated, un-mitigated, and un-monitored, it will exacerbate risk for one or both parties’ whose intangible assets are in play.
And, respecting the economic fact that 80+% of most company’s value, sources of revenue, wealth creation, competitiveness, and sustainability today, lie in – emerge directly from intangible assets, it’s essential for business decision makers – transaction managers to concede intangible assets will inevitably be in play. With that, a dominant objective for each transaction considered or engaged, is to safeguard, preserve, and monitor the contributory value of the intangible assets in play throughout the life-value cycle of the transaction, i.e., pre – post transaction.
Having in-house capability to monitor intangible asset risks, as close to real time as possible, because they are often precursors to fluctuations in asset value, is, in my judgment, a critical requisite for taking prompt and decisive action to sustain and/or re-gain control, use, and ownership of intangible assets and proprietary competitive advantages. Any delay in discovering and assessing the strength and/or eminence of such risks and containing-mitigating their adverse effects by not having experienced guidance in place to distinguish what-which action to take, will routinely complicate and even weaken one’s (future) position for achieving a favorable economic outcome to any transaction in which intangible assets are in play.
Underlying most risk to intangible assets, especially infringement, is unethical or illegal conduct of employees and/or insiders-participants to an impending transaction, i.e., in the form of misplaced trust, operational-procedural oversights, aggressive competitor intelligence, and/or economic – competitive advantage intelligence-espionage.
This is another reason why conducting business-wide intangible asset and competitive advantage assessments are useful, and increasingly necessary, i.e., if evidence of significant risk or probability of infringement are found, the company is better positioned to:
• rapidly recognize and prioritize their options relative to trying to (re-)establish ownership and/or (re-)obtain control and use of their idea-innovation.
• to try to stop and/or mitigate any further economic hemorrhaging of the intellectual capital and competitive advantages that may have already started.
• have a viable exit strategy in place to extricate the company and its IP-related assets, intangibles, and proprietary competitive advantages.