Written by: Keegan Caldwell

In 2023, when Microsoft and OpenAI’s partnership made headlines, it wasn’t just about the estimated $10 billion investment—it was about the strategic alignment of intellectual property that could reshape the future of AI. Their collaboration is an excellent example of a growing trend I’ve observed throughout my career: Some of the most transformative business partnerships are built on the foundation of strong intellectual property portfolios. In fact, deals are not only 53% more likely to close when there’s a partner involved, but they close 46% faster.

As businesses increasingly recognize that innovation rarely happens in isolation, strategic partnerships have become essential for growth and market leadership. However, many executives overlook how their IP portfolio can become their most powerful tool for securing these crucial collaborations. A well-structured IP portfolio can often be the difference between a “yes” and a “no” from potential partners.

The Partnership Proposition: Using IP As Your Calling Card

In many ways, an IP portfolio is like a company resume. According to a recent market analysis, startups with patents and trademarks are 10 time more successful in securing funding, a factor that makes companies more attractive and valuable to those seeking to secure partnerships. This isn’t surprising, as a robust IP portfolio demonstrates innovation capability, business acumen and market foresight.

In fact, according to the Harvard Business Review, 94% of tech industry executives feel innovation partnerships are necessary. This is partially because innovation partnerships can offset research and development (R&D) costs and accelerate timelines. HBR’s analysis particularly notes how important the latter is, as not only achieving but commercializing breakthroughs can take decades without such alliances.

Take the biotechnology sector, for example. When Moderna and Merck formed their partnership to develop personalized cancer vaccines, Moderna’s mRNA technology wasn’t the only thing that attracted Merck—it was their strategic patent portfolio covering key applications that allowed both companies to combine their respective expertise. This collaboration—which has led to a 96% overall patient survival rate—showcases how IP can serve as a game-changing, strategic bridge between partners.

Strategic IP Portfolio Positioning

Before showcasing your IP portfolio to potential partners, it’s crucial to structure it in a way that tells a compelling story and highlights complementary value.

Start by conducting a partnership readiness audit of your IP portfolio. This involves evaluating your assets through the lens of potential collaborators. Consider asking questions like:

• What technological gaps could my IP help partners fill?

• How does my IP portfolio complement theirs?

• What future market opportunities could our combined IP unlock?

One effective approach is clustering innovations into groups that align with specific partnership opportunities. For instance, a medical device company might reorganize its portfolio to highlight patents that could enhance a target pharmaceutical company’s drug delivery capability.

Also, consider the geographic coverage of your IP protection. In the modern global market, partners often look for IP portfolios that provide strategic coverage. And keep in mind that, historically speaking, international agreements between enterprises tend to place a higher value on enforceability and forum neutrality.

Evaluating Partnership Opportunities Through An IP Lens

While your company’s IP portfolio needs to shine, evaluating potential partners’ IP assets is equally crucial. This evaluation should assess the strategic value and quality of their IP holdings. Here’s a framework for IP-focused partnership evaluation:

1. Portfolio quality assessment

• Citation analysis: How influential are their patents in the field?

• Geographic coverage: Do their IP rights align with your market strategy?

• Maintenance status: Are they actively maintaining their key patents?

2. Freedom to operate (FTO) analysis

An FTO analysis is a comprehensive review of existing patents and pending applications. This analysis determines whether a company’s product, service or technology might infringe on someone else’s intellectual property rights in specific markets where they plan to operate. This step is crucial for identifying potential roadblocks early in the negotiation process.

3. IP litigation history

Review any past or ongoing IP disputes. A company’s litigation history can reveal a lot about its IP strategy and risk profile. Look for partners who demonstrate responsible IP enforcement and be wary of any overly aggressive or even needless litigation tactics.

4. Innovation alignment

Examine their R&D pipeline and recent patent filings. Are they investing in areas that complement your innovation strategy?

5. Red flags

Keep a careful eye on:

• Abandoned patents in key technology areas

• Excessive litigation history

• Gaps in geographic coverage for crucial markets

• Unclear ownership or licensing rights

These issues can compound with time, so it’s important to understand and appreciate them before entering any partnership.

Building A Collaborative, Innovative Future

As we head further into 2025, IP portfolios will be increasingly important in securing and maintaining strategic partnerships. The most successful collaborations will be built on the foundation of complementary IP assets that create clear pathways to market leadership.

Approach your IP strategy with partnership potential in mind from the start. Whether you’re a startup looking for your first major collaboration or an established company seeking to expand your partnership network, remember that as valuable as your IP portfolio is, it represents more than a collection of legal rights. It’s an investment in your company’s collaborative future and a powerful tool for creating lasting value.

This publication is distributed with the understanding that the author, publisher, and distributor of this publication and/or any linked publication are not rendering legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, portions of this publication may constitute Attorney Advertising. The choice of a lawyer is an important decision and should not be based solely upon advertisements.

Read on Forbes.