In the rapidly evolving landscape of intellectual property in Ireland and Europe, staying ahead of the curve requires keen insight and adaptive strategies. We sat down with seasoned expert, Paul Ahern, Managing Director of Longitude Licensing, to get to know his thoughts on the current state and the future prospects of the IP market.
Our conversation delves into the most significant trends, legislative impacts, and the transformative potential of emerging technologies, while also exploring the unique offerings and vision that set Longitude Licensing apart in this dynamic field. Take a look!
What do you see as the most significant trends and challenges currently facing the Irish/European IP Markets?
The ongoing digitisation of IP in Europe is a major trend, as we move to modern
platforms and systems - and also the feeding frenzy around AI and the hype that
goes along with it. It seems like these days every patent software platform is
claiming to have AI included, but considering that much of Longitude’s approach
relies on our industry knowledge, personal relationships, and customised reverse
engineering and analysis, we generally rely more on the specialised capabilities of
our people rather than generic software-based tools, though we do leverage those
as well. Of course, the biggest change is the harmonisation happening in the EU with
the UPC and the sooner that the Irish government puts a concrete plan in place to
bring the referendum on the UPC to the Irish people the better.
How have recent legislative changes in Europe impacted IP protection and enforcement, and what further changes would you advocate for?
I think particularly for SMEs this is a great time to step up your patenting activity as
having a single Unitary Patent that is valid across most EU member states at a low
cost could be a real benefit and a game changer for some companies. The rise of
infringement cases being held in Munich just shows that patent owners are attracted
to asserting their rights in this forum, and bodes well for the efficiencies and certainty
we might expect in the future. However, I think patent owners will still need to
exercise some caution and think about what their overall enforcement strategy looks
like before diving headfirst into the UPC, especially in light of the risk of centralized
challenges and invalidations which means that a single challenge to your patent can
nullify your patent across multiple jurisdictions.
In what ways do you think emerging technologies (such as AI,
blockchain, etc.) are transforming the landscape of IP in Ireland/Europe?
Blockchain and the use of smart contracts is something that has been discussed in
the patent licensing industry for quite some time, and it has the potential to really
accelerate the ability to do licensing deals and understand portfolio encumbrances
and royalty rates. But what we are seeing is that this kind of technology is still very
far away from enabling or catalysing licensing deals, which still seem to rely on
protracted negotiations (often face to face, but increasing via video conference) to
hammer out the infringement, validity and damages positions that underpin negotiated licences. I was disappointed to see the recent news that IPwe had gone
into bankruptcy – they had some very talented people on board and I think they had
a very good chance to significant inroads in this area, especially through their
collaboration with IBM, but it seems like it has taken a setback at least for now until
hopefully they can re-emerge from Chapter 7 bankruptcy.
What are your predictions for the future of the IP market in
Ireland/Europe over the next five to ten years, and what key factors will drive these changes?
I think the market for patents will continue to be driven by demand for high quality
portfolios of significant size from recognised innovators. A lot of the sectors that we
are involved with such as semiconductors, memory, mobile devices and display
technology are very competitive and we see a lot of M&A activity that as a byproduct
can free up patents for licensing. Many patent holders like to partner with us as we
have the track record of generating significant returns but doing that with a highly
professional licensing approach and “litigate-last” philosophy. This model is obviously
beneficial in terms of costs but also is key to preserving a company’s reputation and
avoiding conflict with peers who may, in the tech value chain, also be suppliers and
customers of the original owners of the patents. Playing in this ecosystem and
keeping everything balanced and fair is not easy, and I think companies really value
the reassurance that comes with having a responsible and highly professional actor
like Longitude monetise their patents on their behalf.
Can you share the story behind the creation of your product/services?
What specific gap or challenge in the IP market inspired you to develop this solution?
Longitude Licensing came into being in 2013 with the acquisition of the Elpida
Memory portfolio and the creation of the team to manage and license that portfolio.
Over the years, we have grown and acquired several other patent portfolios from
blue chip companies such as Intel, Seiko-Epson, UMC and Cypress Semiconductor.
Even as the number of portfolios under management has grown and our internal
team has continued to expand, our mission still hasn’t changed very much from our
inception – to conduct patent licensing with good faith negotiations in a fair and
collaborative fashion and to achieve mutually beneficial results so that our licensees
are willing to do repeat business with us, and even to partner with us to generate
returns from their own portfolios.
What sets your product/service apart from other IP solutions on the
market? Can you highlight any unique features or benefits that particularly resonate with IP law firms or in-house IP professionals?
I think most parties we deal with, including partners and licensing counterparties
would say we are straightforward to deal with, that we build a foundation of trust and
that we help them to access technology, minimise risk and promote freedom to
operate in their day to day business. We find in our industry that there is a lot of
emphasis placed on trust, and the mutually agreed desire to conduct negotiations in
such a way that all parties can feel their issues have been addressed and resolved.
Through this rigorous and professional approach to licensing, Longitude and its
affiliate IPValue Management Inc. have been able to deliver nearly $1.5B in cash to
partners over time, primarily through business negotiations.
What were the biggest challenges you faced during the developments of your product/services, and how did you overcome them?
Even though AI is improving, at the moment the success of the company primarily
rests with the people, and so you want to make sure that you attract and retain top
talent that is technically very strong, that they are curious about new technology and
also have a sound business sense so that they are able to surface the patents which
will drive deal value and give our licensees peace of mind. Luckily in Ireland we
have a lot of talented people that have had a great work history already, perhaps
working with a multinational company in Ireland or doing a startup where they are
exposed to patents and IP, who then take that leap to move into our industry and
pursue a career in patents. Even though it is still a niche area, I would say it is
growing steadily and already in the decade or so that I have been involved in the
industry in Ireland we have seen a lot of people move around, start their own
companies and just help to create what we have now in Ireland which is a growing
and thriving patent ecosystem.
In what ways do you believe your product/service is changing or will
change the landscape of the IP industry? Can you provide any examples or case studies of its impact so far?
I think that what we offer the industry is a much better solution than the alternatives
that are currently out there. Major blue chip companies have entrusted Longitude
with thousands of their patents to date, and we have been successful in generating
many hundreds of millions of dollars without going down the route of litigation. As we
grow, innovation is spread and the resulting “freedom to operate” is increased. But
even more importantly, we should recognise the avoidance of frivolous and wasteful
litigation while enabling innovators to be justly rewarded. Overall, I have to say that I
believe this is a much better outcome for innovators and implementers alike, rather
than having inaccessible, pent-up value and the ongoing risk of aggressive portfolio
disaggregation to litigious entities.
What are your future plans for enhancing your product/services? How
do you envision it evolving to meet the changing needs of the IP market in Ireland/Europe?
With an increasing push for IP harmonisation, I consider Ireland is well positioned to
take advantage of its unique position as a native English speaking country in Europe
with a highly trained workforce that can really act as a bridge between the US and
Europe in terms of truly global patent licensing. I really believe we have a great
opportunity here to continue to grow our emerging patent licensing industry and
become a world leader in this space. IP in general is such a dynamic and
fascinating field to work in so let’s continue to show ambition and stay right at the
forefront of everything that is developing – and with the help of conferences such as
the Dublin IP and R&D Summit, I have no doubt we can make that happen.
Secure Your Place at the Forefront of IP!
Space at the Dublin IP and R&D Summit is limited - and running out. Don’t miss out on Paul’s exclusive insights during the Day Two panel, “Making the Most of Large IP Portfolios: Extracting Value & Licensing Strategies”, and your chance to meet the legendary Longitude Licensing team one-on-one!
Last-minute tickets are available (for now):
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