In the frenetic world of the stock market, investors and businesses are increasingly finding value not just in the tangible, but also in the intangible. BrainChip Holdings Ltd (BRN.AX), an Australian AI chipmaker, serves as a testament to the significant influence of intellectual property (IP) on the market.
After receiving a US patent grant for one of its revolutionary neuromorphic processors, BrainChip experienced a surge in shares by nearly 11%. This boon brought the company to its highest level since mid-June, outperforming all others on the ASX 200 benchmark index.
What does this phenomenon signify? It underscores the immense value of patents in demonstrating a company’s innovative potential and capacity for disruption. BrainChip’s 17 issued patents and about 30 pending applications worldwide present a compelling signal to investors of the company’s dedication to pioneering technology and promising prospects in the fiercely competitive AI industry.
This is not an isolated incident where patents have catalyzed investment. Recall the late 90s technology boom when Microsoft’s stock price skyrocketed 900% due significantly to their rapidly expanding patent portfolio. It propelled them to a leadership position in tech innovation. Similarly, in the early 2010s, ‘smartphone patent wars’ between giants like Apple and Samsung highlighted the crucial role of IP rights. These instances validate that a robust patent portfolio can be a substantial factor in determining a company’s valuation.
What should companies eyeing an IPO draw from this? The worth of your patents could be equally, if not more, important than the value of your physical assets. Developing an IP portfolio sends a robust signal to the market about your company’s innovative potential, leading to an enhanced stock price and company valuation.
For businesses eager to accelerate the patent application process, the USPTO’s Track One program is a viable option. This program fast-tracks the examination process for non-provisional utility or plant patent applications, enabling faster patent grants.
The secret is out. A strong IP portfolio is indispensable in influencing business valuations. Companies preparing for an IPO should prioritize their patent applications and make use of the Track One filing when possible. As BrainChip and other successful tech innovators have proven, the rewards can be considerable, marked by substantial capital influx from public and private investment rounds.
So it’s time to shift gears, where intellectual property becomes the driving force of business growth. Secure your patents, build your portfolio, and showcase your innovations to the world. In this marketplace of ideas, those with patents pave the way to the future.
