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The Impact of Intellectual Property on Investment Performance: Measuring ROI

The value of a company’s intellectual property (IP) cannot be overstated. Intellectual property (IP) safeguards a business’s original works, innovations, and recognizable brand name from infringement. Research shows that IP-intensive sectors outperform non-IP-intensive industries by 33% in terms of sales, employment, wages, and investment, demonstrating the potential significance of IP for a company’s investment success. In this post, we will discuss the significance of tracking your return on investment (ROI) in relation to intellectual property.

Understanding Intellectual Property

Intellectual property is any creation of the mind that is protected by law. There are four main types of IP: patents, trademarks, copyrights, and trade secrets. Patents protect inventions and new technologies, trademarks protect branding, copyrights protect original works of art, and trade secrets protect confidential information. Intellectual property protection is critical for businesses as it provides a competitive advantage, prevents competitors from stealing ideas, and creates value for the company.

Investment Performance

Investment performance is a measure of how well an investment has performed over time. There are many factors that affect investment performance, including market conditions, company performance, and investor behavior. Measuring investment performance is essential for investors to evaluate the success of their investments, make informed decisions, and assess risk.

The Relationship between Intellectual Property and Investment Performance

Intellectual property can have a significant impact on a company’s investment performance. Companies that invest in IP can create a competitive advantage by protecting their innovations, brands, and confidential information. This protection can lead to higher revenue, increased market share, and higher profit margins. In contrast, companies that do not invest in IP may be at risk of losing market share as competitors can quickly copy their products or branding. Research has shown that companies that invest in IP outperform non-IP-intensive companies by a significant margin, with a 33% advantage in sales, employment, wages, and investment.

Measuring the ROI of Intellectual Property

It is crucial for businesses to calculate the ROI of their IP if they want to know how much their investments are worth. The return on investment (ROI) of intellectual property can be calculated in numerous ways, both monetary (through revenue and profit margins) and non-monetary (through brand awareness and market share). In order to assess the performance of IP investments and make educated decisions about future IP investments, it is vital to measure the return on investment of IP.

 

The value of an investment is highly contingent on the quality of a company’s intellectual property. Companies that invest in IP tend to see a rise in revenue, market share, and profitability as a result of their efforts. It is essential to determine the ROI of IP investments in order to evaluate the success of previous endeavors and set goals for the future. Given the significance of IP to the long-term investment performance of a firm, IP protection and management should be at the top of the organization’s to-do list.

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John Reighard, Partner & EVP

John Reighard is a Partner at Angel Investors Network, where he leverages his expertise in business development, networking, and investor relations to help entrepreneurs secure funding and scale their businesses. With a passion for connecting people and ideas, John plays a pivotal role in fostering strategic partnerships and guiding business owners toward sustainable success. In addition to his work with Angel Investors Network, he also owns and operates two other small businesses.

 

A Connector and Networking Extraordinaire, Business Coach/Consultant, and Inspirational Speaker, John is deeply committed to helping individuals and businesses achieve meaningful results. His mission is to empower entrepreneurs and leaders to create lasting impact through strategic growth, financial acumen, and powerful relationship-building.

 

John has trained with, been mentored by, and provided consulting services to some of the world’s top thought leaders in personal development and business transformation, including Jack Canfield (America’s #1 Success Coach and Founder of Chicken Soup for the Soul), Stephen Covey, T. Harv Eker, Bob Proctor, Blair Singer, Robert Kiyosaki, Neil Rackham, Marcia Wieder, and Roger (Bud) Seith. These experiences have shaped his ability to guide clients through personal and professional growth, helping them unlock their full potential.

 

Before joining Angel Investors Network, John took a sabbatical in 2002, living with his family in Norway, Portugal, and France—an enriching experience that followed 15 award-winning years in Silicon Valley. During his time in the tech industry, he worked for leading companies such as Lucent Technologies, Exodus Communications, Octel Communications, and Brady Corporation.

Meet Jeff Barnes

Jeff Barnes is a former US Navy Nuclear power plant operator on a Submarine, Navy diver, risk management director, technology enthusiast, business growth expert, advisor and management consultant. Mr. Barnes sits on the boards of startup companies, runs a venture fund, supports non-profits supporting military vets, and spends most of his time helping CEOs and founders of growing companies automate, systemize, and scale to 8 and 9-figure valuations.

 

With over 20 years of technology, systems, operations, and marketing experience, Mr. Barnes has advised over 1,000 companies, invested tens of millions in advertising campaigns, and helped companies generate over $1 billion in investment capital.

 

As the chairman of Angel Investors Network and founder of Digital Evolution Marketing Group, Mr. Barnes has worked with founders, entrepreneurs, and CEOs around the world to accelerate the growth of their businesses and achieve substantial exits. He’s a father, husband, veteran, business owner, advisor, and mentor, and his true passion in life his helping others achieve success, freedom, and autonomy in theirs.