For many Florida businesses, the annual budgeting process focuses on the facts and figures from the prior year. While anticipatory budgeting plays a role in some instances, in many cases there are areas of need that are overlooked. A recent survey suggests that litigation budgeting for royalty disputes and other form of intellectual property protection may be on the rise.
The survey took a look at information gathered from the legal representatives of 392 companies. The responses suggest that in many cases, these professionals believe that there is a need for increased litigation budgeting for the coming 12 month period as compared to the previous 12 months. Overall, among publicly traded companies participating in the survey, as many as 19 percent have planned to spend more on litigation of intellectual property.
In an ever-changing business climate, when information is exchanged at a rate that surpasses the ability for full oversight, the misuse of intellectual property poses a real concern to a wide variety of businesses. Survey respondents were largely concerned with patent infringement matters. However, there are many other forms of IP misuse that can negatively affect a business.
For Florida business owners or individuals who rely on the ability to profit from intellectual property, this survey may lead management to take a closer look at the existing strategy to defend such assets. In terms of royalty disputes, having sufficient budgeting in place to defend against misuse of such IP makes solid business sense. This is one area where it may pay off to over-budget than to assume that significant litigation needs will not come into play.
Source: Thomson Reuters, “Businesses plan to boost IP litigation spending-Survey,” Dan Levine, Feb. 27, 2013