Where does IP stand in the corporate boardroom? Do corporate leaders fully understand or care about intellectual property? That the Chief Intellectual Property Officer (CIPO) is now an emerging senior role within corporations signals a growing recognition of IP’s importance to business success.

Should the CEO appoint a CIPO? That’s the one of the issues currently being debated in the IP community. According to Duncan Bucknell’s post in his IP Think Tank blog, some argue that smart companies should have someone with C-level gravitas to build IP’s profile and advocate its use to deliver business value. He himself believes that those who aspire to this position or who believe in the need for a CIPO should start by raising the profile of IP itself as a source of strategic advantage by simply getting IP-related jobs done – and slowly but surely building the credibility of the IP function with senior management.

 

That the Chief Intellectual Property Officer is now an emerging senior role within corporations signals a growing recognition of IP’s importance to business success.That the CIPO’s role and place in the organizational hierarchy is still largely undetermined, however, reveals that putting intellectual property on the same level of importance as other corporate functions is still a work in progress.

Before CEOs can appoint a CIPO, they have to take IP seriously.
Hard to believe, but true: In some companies, in these economic times, intellectual property just isn’t on top of the CEO’s agenda. Sometimes, it’s a matter of corporate structures. According to an article by Andrew Watson and Jordan Hatcher for managingip.com, if the head of IP is at least two layers below the CEO (reporting to the head of legal and then to the CFO, for example), lack of face time with the CEO could perhaps make it hard for the latter to put IP on his or her top 10 priority list.

Organizational structure could also make it hard for IP to prove its worth as an asset that drives ROI. Managing IP is a strategic, visionary function – and putting it in the legal/finance boxes (non-risk-taking functions) of the org chart may not necessarily provide the environment for IP to flourish. The authors contend that putting IP in the same environment as strategy, marketing or business development (decision makers, risk takers, results-driven) just might provide the mindset required for IP to prove itself.

 

The CIPO profile
The role of the chief IP officer was recently explored by the IP Business Congress, organized by IAM (Intellectual Asset Management) magazine, this past June. IAM gathered a group of prominent chief intellectual property officers and IP thought leaders for a series of “Innovation Games®” sessions to gain insights into the role of the CIPO and how it could evolve in the near future. The resulting research report (the 2009 CIPO Manifesto) revealed the participants’ overall view of what the CIPO's role is or should be:

• The CIPO role is associated with “visionaries” and, while many of today’s CIPOs have a legal background, the role has more of a strategic rather than legal focus.
• The CIPO passionately advocates the importance of IP to the CEO, Board of Directors, and the executive staff, integrating IP matters into the overall corporate strategy.
• The CIPO function is best served with a combined centralized (aligned with overall corporate strategy) and decentralized (having “independent” management and budgets, for example) strategies.
• The CIPO’s success comes with balancing a long-term vision with concrete, measurable deliverables toward the achievement of that vision.
• The CIPO’s biggest challenge: valuation of IP assets and “getting IP on the balance sheet”.
• The CIPO’s critical external relationships: the USPTO, EPO, and JPO; industry analysts, and key IP courts.
• The CIPO’s must-have capabilities: technical competencies in IP litigation, licensing, and protection…R&D and strategic planning…finance, market expansion, and global issues

Today, as corporate leaders try to cope with a struggling economy, they’re beginning to see intellectual property not just as a legal right to be managed out of the legal department, but as a business asset worthy of the attention of a C-suite officer. But while more and more companies are giving CIPOs a seat at the table when tackling M&As, corporate finance, procurement strategies, litigation plans, monetization programs, when will inviting the CIPO to the next board meeting be the rule rather than the exception?

 

About IAM:
Intellectual Asset Management magazine - a part of The IP Media Group - is a publication that reports on intellectual property as a business asset. The magazine's primary focus is on looking at how IP can be best managed and exploited in order to increase company profits, drive shareholder value and obtain increased leverage in the capital markets. Its core readership primarily comprises senior executives in IP-owning companies, corporate counsel, private practice lawyers and attorneys, licensing and technology transfer managers, and investors and analysts.