by 
Opinions expressed by Entrepreneur contributors are their own.
A properly managed patent portfolio can be an organization’s most valuable asset.
A robust patent portfolio can protect investments by securing product lines and defending against litigation and infringement by competitors. A strong patent portfolio can also provide the value needed to raise funds, work with partners, and strengthen the company’s position in mergers, acquisitions and other transactions.
Recent advances in data technology, such as machine learning and artificial intelligence, have eliminated many manual processes and made patent data increasingly accessible to small and large companies.
Patent management software uses patent data analysis to help companies prepare and organize patent applications, manage patent portfolios, and make data-driven strategic decisions. Without a patent management tool, it is difficult and costly to gain value from a patent portfolio.
If you are considering starting or building a patent portfolio and want to maintain it efficiently, you need a powerful and comprehensive patent management tool.
Here are five benefits of optimized patent management software:
Related: Explaining the basics of protecting intellectual property
1. Reduced legal fees
A patent management tool synchronized with the United States Patent and Trademark Office (USPTO) can provide automatic status updates that would otherwise be billed by external advisors. When advanced data analytics provide information to track your case, you can make intelligent decisions based on the same knowledge that was once available only to your law firm.
Save time and money with real-time status that eliminates the need to call an attorney, wait for updates, and pay for information.
Patent management software that provides easy-to-understand reports on the status of your patent portfolio enables you and your employees to make quick and informed decisions.
2. More effective patent prosecution
Patent prosecution – the process of obtaining a patent – involves developing, applying for, and negotiating an issue with the patent office. The likelihood of a case being successfully prosecuted often depends on the allowance rate of the expert assigned to the case.
The more you know about your examiner’s benefits history, the better you can negotiate and make informed decisions about how to handle your case. A patent management tool that tells you how the examiner dealing with your case usually reacts gives you the ability to choose the right course of action.
3. Patent verification
Every process where you screen and select ideas to draft and submit requires input and collaboration from stakeholders who know the technical benefits, budget issues and strategic vision.
A patent management tool that facilitates the interaction between these entities is crucial for discovering and developing the most promising ideas without lengthy meetings. Smart information, such as cost and entitlement forecasts, allows you to find the most promising protection ideas.
Features like simultaneous editing, idea commenting, and documented changes help capture the best ideas in the enterprise. Such tools, which enable online and real-time collaboration, can provide a patent portfolio that aligns with the company’s strategic vision and budget.
Related: Want to patent an idea? Consider these 3 tips
4. Assistance in the effective implementation of the IP budget
Effective budget spending is key to maximizing the use of the patent portfolio.
The key to effectively spending your IP budget often starts with aligning your strategy with your portfolio and ensuring your patents align with those goals.
Are you building a defensive patent portfolio or one you want to acquire? Is the goal of asserting or licensing your patents? Do you have aspirations to enter new markets? A clear strategy will help you determine which patents need to be pursued or pruned to best allocate your budget.
Patent management software that allows you to categorize, summarize and classify cases using objective metrics is the first step towards getting a clear picture of your portfolio and how to execute your strategy.
This type of analysis helps identify which cases no longer have value so they can be cut off, licensed or auctioned off to free up budget for better opportunities.
5. Multiple innovation dashboards
Focusing on the exact data you need will help you stay on top of the patenting process and make timely and informed decisions.
Role-specific dashboards for inventors, managers, patent practitioners, and administrators provide relevant perspectives for different stakeholders. Everyone involved in the patent program receives their individual view with appropriate rights to their involvement.
Dashboards with a list of ideas submitted and submitted by their team allow managers to track inventors and the stages they are working on or where they are stuck. They can also help identify prolific innovators who submitted the most ideas or filed the most patents. Filters allow you to further target the interface to a given query.
Multiple dashboards can help you gain insight into every corner of the innovation process to stay consistent with your company’s strategies and KPIs.
Related: 4 Ways to Significantly Reduce the Cost of Obtaining New Patents and Managing IP
Patent management software is essential for organizing and managing your patent portfolio. With it, you can easily track the progress of your patents and get up-to-date answers to all your questions.
How many patents have been issued? What is the status of the various submissions? How many patents apply to a specific product line? A powerful patent management tool provides the answers you need to stay on top of innovation throughout the patent lifecycle. It saves time and money and helps achieve the company’s strategic goals.
A well-chosen patent portfolio can give you the competitive advantage you need to protect your patents and bring new products to market. The right patent management software facilitates thoughtful management of each stage of the process.
