Why Intellectual Property?

Dear Reader,

From Robert G. Hagstrom in The Warren Buffett Way (page 78), “the economics world is divided into a small group of franchises and a much larger group of commodity businesses, of which most are not worth purchasing. Buffett defines a franchise as a company providing a product or service that is (1) needed or desired, (2) has no close substitute, and (3) is not regulated. These traits allow a franchise to regularly increase the prices of its products or service without fear of losing market share or unit volume. Often a franchise can raise its prices even when demand is flat and capacity is not fully utilized. This pricing flexibility is one of the defining characteristics of a franchise; it allows franchises to earn above-average returns on invested capital.”

We believe, if you patent a good idea, you can help a business owner increase her franchise as Buffet describes it. True, intellectual property is a regulated industry; however the regulation is favorable for a business owner. By enabling the business owner to exclude others from selling your idea, the business own can earn above-average returns on their money.

Through our efforts and industry contacts, we believe given the right idea, we can increase business owner’s franchise.

Please contact mdarguza@bradley.edu if you have questions regarding why intellectual property.

Best Wishes,

AIPO