HP Leverages Patent Portfolio with Intellectual Property Licensing Group

1/19/2004 - Seeking to leverage its rapidly growing patent portfolio, HP (NYSE:HPQ) - the company with "Invent" in its logo - announced it has formed an intellectual property (IP) licensing organization designed to increase revenue and improve technical collaborations with partners.

The company moved up sharply in the annual list of top 10 private sector organizations receiving the most U.S. patents announced by the U.S. Patent and Trademark Office today, ranking No. 5, up from No. 9 the previous year. HP was awarded 1,759 U.S. patents in 2003, a 27 percent increase over the 2002 level of 1,385.

"We're proud of the fact that our focused innovation strategy - investing in technologies where we can lead and partnering for the rest - is paying off," said Shane Robison, executive vice president and chief strategy and technology officer, HP. "Over time, we believe that the new IP we are generating will help contribute to top-line and bottom-line growth in both established and emerging markets."

Worldwide, HP increased its patent portfolio from about 17,000 to 21,000 in 2003, according to Steve Fox, HP vice president and deputy general counsel, intellectual property. With 4,000 new patents worldwide last year, HP earned an average of 11 patents a day.

"After we added the word 'Invent' to our logo in December 1999, we launched a major effort to increase our intellectual property portfolio," said Fox. "We have been holding 'innovation' workshops designed to encourage the technical workforce to disclose more inventions. The results have been excellent; since that time, including the Compaq merger, we have doubled the number of worldwide patents we own."

To take advantage of the portfolio - one of the largest in the IT industry - HP has formed a centralized IP licensing organization to drive overall strategy and increase revenue. The scope of the effort includes HP's entire IP portfolio of patents, copyrights, trademarks and trade secrets.

"Historically, HP's intellectual property has provided value to the company in the form of innovative products and protection from our competitors," said Joe Beyers, vice president, intellectual property licensing. "This approach has served us well, but in many cases we have missed out on the opportunity to gain additional value from HP's inventions beyond product revenue. Capturing these additional opportunities is important to HP as the competitive environment in which we operate continues to intensify. Also, by making HP's intellectual property more broadly available, we can improve our collaboration with other companies."

HP already has several formal IP licensing efforts underway. They include:

More information on these and other HP licensing programs is available at http://www.hp.com/hpinfo/abouthp/iplicensing/.

To emphasize HP's new, strategic approach to intellectual property and increase the visibility, coordination and control of the company's IP assets, all IP has been moved into a separate, wholly owned holding company, which will be managed by the IP licensing organization. Financial benefit from licensing revenue will flow back to the business organizations that created the IP.

About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at http://www.hp.com.

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