Managing Acquisition Risk, Even When There Are No Patents!


Innography helps clients manage acquisition risk by enabling analysis of the target company’s patent portfolio, showing the portfolio strength and position versus competitors, and highlighting chain-of-title issues.


But what if the target company has no patents? There are still some risks that we can help analyze.  For example, I had a CFO ask me a few weeks ago, “Who is going to come after me after the acquisition now that we have deeper pockets?”

As one relevant example, local company MapMyFitness has no patents (and one patent application) and was recently purchased by UnderArmour.  The ink had barely dried on the contract when Adidas sued Under Armour for alleged patent infringement by MapMyFitness’s products.

Let’s look at how Innography can help discover this acquisition risk.  By doing a semantic patent search using MapMyFitness’s product description on its home page, we can create this market map from the top 1,000 matching patents (this took me less than 30 seconds to do):

Notice that Adidas has the second-most patents that match MapMyFitness’s product description text.  And if we dive into the Adidas patents that were found by this search, of the 10 that Adidas claimed infringement on, 8 were found with this quick and simple analysis!

This is another example where Innography’s patent search and patent analytics can provide unique insights into business questions, even in the case where an acquisition involves no patents.


Comments

Erika, 10.17.2016

This is an interesting story and Under Armor and Adidas. It is nice that the innography’s patent search and patent analytics were able to provide the insights and information that was necessary. I did not know that was possible where the acquisition involved no patents. Thanks for sharing!



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