Effective intellectual property (IP) management requires a strategic approach, especially when resources are limited and legal protection can be costly. Many businesses allocate IP protection efforts based on revenue potential alone, but this often overlooks profitability factors.
Consider the analogy of World War II analysis regarding surviving aircraft versus those that didn't return: while many focused on protecting trademarks with high sales volume or visibility, they failed to consider which assets truly drive bottom-line value. Applying similar logic in IP management means shifting focus from revenue potential to EBIT contribution - Earnings Before Interest and Taxes - to determine where your intellectual property delivers the most significant financial impact.
EBIT provides a critical indicator of an asset's true worth. When evaluating trademarks or patents, look beyond surface-level metrics and analyze their profit contribution per jurisdiction. This data-driven approach helps identify high-margin opportunities that deserve priority and flags underperforming assets for strategic adjustment.
The focus should be on protecting IP with the highest economic value to your business. By understanding this distinction, companies can optimize limited resources by focusing protection efforts where they will have the most tangible impact on profitability.