5 Reasons Why Investors Love Patent Landscape Studies

​Patent landscape studies are really powerful tools. They can provide a lot of valuable information to a company about competitor’s strategies, currently existing and unexploited market opportunities, and technology trends, and can even increase the valuation of a company and its patent portfolio. We discussed some of this information in a previous post.
 
But did you know that investors also place a large value on landscape studies? Below are five reasons why investors like to see landscape studies when evaluating a company.
 
1.  Landscape studies provide an overall picture of a company’s market position in the context of its own field and provide a glimpse into potential pathways for future growth. Such studies have powerful mapping capabilities that will not only show you where your company currently stands in the market, but will also identify white space that can offer additional opportunities for growth and development. Taking advantage of this information can help a company plan its current and further research projects.
 
2. Landscape studies can identify hurdles to commercialization. One such hurdle can come from market over-saturation. If a company is developing IP and products in a crowded space, that company may not only face a lot of competition when it enters the market, but may also face potential infringement claims. Another hurdle can be from technology limitations. If a company is developing IP in a space that has no active competition, there may either not be demand for the product or there may be serious technical problems with the underlying technology. Identifying such issues is important when evaluating a company’s potential market strength.
 
3. Landscape studies provide important information about potential competitors. Not all competitors are equal. A landscape study will not only identify competitors in a company’s space, but it can also uncover the relevant strengths of those competitors. Some competitors may have already launched products while others may have only just filed patent applications. Knowing this information can help a company analyze the relative threats that those competitors present and can also provide valuable insights should your company choose to negotiate a license or collaboration agreement with those competitors.
 
4. Landscape studies can also identify trends in the technology. When mapping the marketplace, these studies can reveal how technology has evolved in a specific space. In the CAR T cell therapy space, for instance, there are currently at least four generations of technology that are being pursued. If a company is working on the first-generation version, that company may be missing out on important market advancements and opportunities that are available to those who are pursuing fourth-generation technology.
 
5. Landscape studies can breathe life into a company’s business strategy. While this seems like a no-brainer, it is amazing to see companies have no plan or reasoning to justify why they are pursuing certain compounds, certain indications, or certain platform technologies. When done correctly, landscape studies can be used to quantitatively evaluate and justify a company’s rationale for devoting resources to the pursuit of certain development projects while abandoning others.
 
Overall, landscape studies can be incredibly valuable tools that support and guide a company’s business strategy. Having one on hand, and keeping it updated, when pitching to investors can improve your chances of being seen, respected, and appreciated. If you have any questions about performing landscape analyses or updating a landscape analysis, please feel free to reach out to us.