EverEdge November Newsletter: Risky Business

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Good morning,

Today, more than 87% of company value and earnings growth is derived from intangible assets. It therefore makes sense that companies will aggressively defend these valuable assets if they are threatened.

With a number of high-profile IP litigation cases being in the news recently, this month's newsletter focuses on intangible asset risk and how to identify, assess, manage and mitigate it. 

As companies start planning for 2019, intangible asset risk management should be at the top of the agenda.  If it's not near the top of yours, we'd suggest reading about the level of damages awarded in the recent Cochlear IP litigation case.  At A$380m - more than 17x the amount the business has set aside for liability - it is a stark reminder to Boards and management teams that  intangible asset risk needs to be taken seriously. 

We also want to take this opportunity to update you on the launch of our new investment arm EverEdge Capital; and the appointment of Francis Milner as Chief Investment Officer of EverEdge Capital.  

Thank you for your continued support.


Paul Adams, CEO
Upcoming speaking events

Risk Forum - New Directions in Risk (Nov. 15, Melbourne) 

Singapore FinTech Week: NZTE Panel - Setting up Your Business and Accelerating Growth (Nov. 16, Singapore)

ScaleFest 2019 (March 1-2, Melbourne)   












 


 
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EVEREDGE GLOBAL UPDATES
EverEdge Global launches new investment arm

This month, EverEdge Global announced the launch of its new investment arm, EverEdge Capital. EverEdge Capital will specialize in making investments in, and helping to monetize, intangible assets with the aim of delivering a strong return on investment both to innovators and investors.

It is currently seeking and reviewing investment opportunities across Australia, South East Asia and New Zealand.

For further information, click here
Francis Milner appointed as Chief Investment Officer, EverEdge Capital 

Francis Milner has been appointed as Chief Investment Officer (CIO) of EverEdge Global, to spearhead the company's new investment arm, EverEdge Capital.  

An experienced investment banker and special situation private equity investor, Francis will be responsible for deploying capital via a proprietary investment approach that is designed to accelerate the commercialization and monetization of intangible assets.  
Francis has successfully completed transactions worth US$ 7.1bn+ in deal value

To learn more about Francis' background, click here.
CLIENT IMPACT
"As a fast moving consumer good company our value is in our brand and EverEdge understood that from day one. I would strongly recommend brand based companies talk to EverEdge to understand what the value of their brand truly is."
Craig Jackson - Founder, Dr Feel Good.
EVEREDGE INSIGHTS
Are you putting your business' most valuable assets at risk?

Despite intangible assets making up almost all of company value today, many companies still focus on fixed assets when it comes to managing risks.  In more than 750 client engagements, we have only seen intangible assets feature on a risk register once.  Yet, across all these engagements we have found that virtually all companies suffer from at least one of the top five intangible asset risks. 

If you are not managing these risks within your own organisation, you are potentially putting your company's most valuable assets at risk. Click below to hear EverEdge CEO Paul Adams outline the top five risks companies face in relation to their intangible assets. 


Be prepared to fight...
 
Companies don’t spend millions of dollars filing intangible assets such as patents, trademarks and plant variety rights to stuff them in the bottom drawer.  Today, more than 87% of a company’s value and earnings growth is derived from intangible assets and it follows that companies will aggressively defend these assets – including through litigation, if necessary.

Among the top-five intangible asset risks companies face every day (especially those doing business in international markets) – is threatened or actual intellectual property litigation. There has been a massive growth in IP litigation in the United States and Europe over the last 10 years and it now presents a significant risk to many companies, especially those that haven’t identified or mitigated their intangible asset risks.

Several companies, including Cochlear and F&P Healthcare have recently found this out, while Zespri is defending its Plant Variety Rights through the High Court.  To read more about the impact of these cases - and how to avoid getting caught up in costly IP litigation, click below.  


Protecting your competitive advantage
 
As a global expert in intangible assets, EverEdge CEO Paul Adams is often asked to share his knowledge on the topic.  This month, Paul has contributed to a Delta Insurance white paper that focuses on intangible asset risk management. 

The white paper is a very worthwhile read and provides an excellent overview of IP Dispute Trends in the U.S.A, China and New Zealand; along with outlining a four-step preventative framework that will help companies take a structured approach towards protecting their IP.

The paper also includes a summary of what insurance coverage is available to protect you in the event your business is caught up in a dispute around your IP.  Given the rise in IP related litigation, we expect this type of insurance cover to become increasingly popular – especially for business’ operating across multiple jurisdictions.  To read and download the whitepaper, click
here


CLIENT IMPACT
“EverEdge helped us to set the terms of reference for an unusual contract negotiation where access to new intangible assets was critical. Throughout our engagement, the EverEdge team were flexible, efficient and worked hard to meet our needs and timelines.” 
Ann Damien, New Technology Associate, Cook Medical.

IN THE NEWS
 
Fisher & Paykel Healthcare shares sink after German patent decision

Fisher & Paykel Healthcare's share price fell by 3.3 per cent on the news that the Munich Regional Court found that headgear for two of its masks used in the treatment of obstructive sleep apnea infringed a patent held by its main competitor, ResMed of the US.




 
Zespri sues for $70m over trademark breach in China

This month, Zespri went to court alleging a $70 million loss from kiwifruit orchards planted in China. Zespri said the illegal supply of the plants breached its IP rights over the SunGold variety, which had been developed by the company, and was its trademarked property. The supply of the plants to China further breached clauses of the Plant Variety Rights Act.


Singapore FinTech Patent Fast Track Program

In April, the Intellectual Property Office of Singapore launched the FinTech Fast Track (FTFT) initiative to expedite the patent application-to-grant process for FinTech inventions to 6 months; as compared to an average of 32-months for standard patent applications.

The Singapore Government wants to support the growth of FinTech innovations and enable businesses to market and commercialize their products and services more rapidly. For companies outside of Singapore, progressing a FinTech patent in Singapore can also then help to expedite applications in other markets.   


 
Cochlear will appeal $377m US patent judgment as shares hit
 
Earlier this month, Cochlear (ASX:COH) had AU$377M in intangible asset damages (including for willful infringement) awarded against it for patent infringement in the US. The damages awarded were more than 17 times the amount Cochlear had set aside for liability and Cochlear's shares were down 3.8% or A$380M on the news. Cochlear will appeal, but the appeal judgment could be two years or more away.

A stark reminder to Boards and Senior Management Teams – when 87% of all value is in intangible assets people will defend them and they can be hugely rewarded for doing so.



 
CLIENT IMPACT
“EverEdge’s report was exceptional. It was not only provided deep insight but was also highly commercial and pragmatic. It clearly identified our intangible assets, why they are important and outlined exactly the action points and priorities to unlock their value.”   
Trent Fultcher, Head of Strategy, Airways New Zealand


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