Microsoft IP Ventures Essay

Submitted By batmansia
Words: 463
Pages: 2

Microsoft’s consumers have been demanding that Microsoft interact with other providers. This is also beneficial for Microsoft since their Research and Development expenses can be fully utilized. IP ventures aimed to smooth relations with entrepreneurs and venture capitalists, increase researcher morale, and keep abreast of developments in the broader technology field. This is done by offering technology to the venture capital community in exchange for equity. IP ventures will have an observer seat on the board. Microsoft supplies public relation, marketing and technology support but not financing.
Many corporations that had operated VC efforts had revised them. Corporations such as Sun and Dell had disbanded their VC operations where others such as IBM and Microsoft chose not to invest but to provide assistance. Some big corporations such as Intel, Motorala, Johnson & Johnson and Eli Lilly had decided to retain their VC operations. These VC investments are used to extend their internal R&D. These companies can discover new approaches and products. Additionally, by being in the company’s board, they can consider a potential acquisition as well as anticipate a competitor’s move.
Microsoft used the non-assertion of patents (NAP) for IP protection. By 2003, this method had proven to be ineffective. Microsoft has been spending a lot in legal lost and the number of suits filed against it had almost double over years which threatened Microsoft. Microsoft then hired Phelps to help to company to achieve its critical business objectives. Phelps then recommended a counter-intuitive response. He suggested that Microsoft should abandon NAP and begin an outbound IP licensing program. He said that Microsoft should focus on leveraging intellectual property’s inclusivity value in order to build the collaborative relationships needed to remain…