IP-driven business due
diligence takes many forms to support the immediate objectives.
Here are some examples of our implicit and explicit extraction
of decision-support information through patent-based due diligence.
I. OBAMA'S AUTO TASK FORCE / AUTO
Patent Assets Intelligence Report was delivered
to President Ob ama’s Auto Task Force the week before
GM’s CEO Rick Wagoner was asked to step down.
It illustrated a decade of GM's inferior patent strategy in
a global Automotive Green Tech market, and contrasted it to
Ford’s aggressive patent strategy during decade leading
up to the Auto Bailout (26% of Ford’s portfolio was
“green tech”, nearly twice GM’s ratio).
Was our due diligence report the tipping point
for Obama’s decisions, or simply coincidental? (download
II. BUSINESS START UP FORMED TO DOMINATE
US WEIGHT LOSS MARKET
full Case Study)
Status:angel investment received, $1
million fundraising under way. Gibbs is providing an interim
Although Weight Watchers® and Jenny Craig®
pull in about $2 ban annually, they represent a mere 3-5%
of the US diet market. 80% of the market are "do-it-yourself"
dieters who rely on the Internet and diet books.
Using our proprietary technical due diligence
and market research, we developed a "no calorie or points
counting" weight loss program that weaves it way through
the Smart phone camera technology domain, drastically simplifying
meal management for the "other" 70 million dieting
Americans (51% of which own an Androids or iPhone's).
By developing the business model and seven commercially
valuable inventions, we set the stage for the next scalable
More importantly, we analyzed "competitors"
patent trajectories to engineer into the business plan a few
possible investment exits through acquisition.
ARE PROVEN TO CONSISTENTLY RELIABLE PREDICTORS OF PRODUCT
AND MARKET TRENDS AND COMPETITIVE LANDSCAPES.
III. DOW JONES VENTURESOURCE® PILOT
CHARACTERIZES PRIVATELY-FUNDED COMPANIES BY PATENT ASSETS
We drove a Dow Jones Venture Source® pilot
program to evaluate patent assets of listed companies. We
found that while listed companies owned an average of 6.7
patents, 40% of those patent assets failed to claim
those company’s most commercially valuable technologies.
Our due diligence reports delivered exclusive
insight on where an early stage company’s IP
strategy may create business and financial risk,
the employment history of the companies' chief innovators,
flush out inflated sales expectations, and alerted investors
on other companies that were better or more poorly positioned
to dominate their respective market segments.
Prior to News Corporation's 2007 Dow Jones take-over,
our pilot was on track to deliver robust company-related sorely-needed
patent asset information to technology investors - in a seamless
Venture Source format.
VI. WE PREDICTED
THE IN-VEHICLE ROUTE MAPPING MARKETPLACE
5 YEARS IN ADVANCE
In 2008, we conducted patent-based due
diligence for a Michigan-based automotive company proposing
investing a new in-vehicle GPS mapping system (cellular technology
vs. satellite technology).
Auto industry experts, as they were, projected
sales of 2.5 million systems (vehicles) by 2011, having a
“first mover” advantage over their Tier-1 competitors.
Our due diligence discovered a leading
patent filer NOT considered an auto-industry competitor:
We advised using licensed Goggle
mapping technology as the alternative to R&D investment.
We also suggested that Goggle’s
mapping products would be superseded within a few years,
and that licenses should be non-restrictive as to future partners.
Two years later (July 2010), GM, Ford,
BMW and Mercedes announced relationships directly with Google
Then, in June, 2012 (nearly five years
after our patent-based forecasts), automotive news reported
that General Motors, Honda and Toyota were now integrating
Siri button into vehicle steering wheels.