Experience clearly points to events such as this would and have produced vicious downward cascading that would adversely affect the confidence of lenders, shareholders, and consumers which…
If readers buy into this premise that there are indeed systemic risks to IP and intangible assets…the question remains how to avoid, or at minimum, mitigate the adverse cascading effects.
Systemic risks to a company’s IP and intangible assets should not be viewed in isolation nor as unrelated, snap-shots-in-time events.
Perhaps a better way to convey systemic risks to IP and intangibles is that ‘the assets’ are, out of absolute necessity’ often times shared internally and externally. In other words, disintermediation may not be a viable option due to time, resource, launch, and contractual (partnership, strategic alliance) constraints.
The primary company must examine/consider how critical any ‘intermediaries’ are to producing – manufacturing a new product relative to the overall necessity to indeterminately sustain uncontested and unchallenged control, use, ownership of the IP and intangibles and monitoring their value and materiality.
List moberly’s characteristics of IP as ‘system risk exposure points’
Conventional IP enforcements work far to slowly to be of any significant value in recovery or recouping losses, or avoiding financial disaster of the companies involved…
Steven Schwarcz of Duke University School of Law wherein he described it (systemic risk) as ‘the probability that cumulative losses will occur from an event that ignites a series of successive losses along a chain of (financial) institutions or markets comprising a system’.
That definition is surely relevant to SME’s and SMM’s which seldom have the resources, inclination, time, and/or internal expertise to recognize the systemic (inherent) risks necessary for sustaining control, use, ownership and monitoring value and materiality of their IP and intangible assets.