The IP Wales® Interim Report ‘Patent Prospecting on the Alternative Investment Market’  publication is timely as this month sees the abolition of Stamp Duty on Alternative Investment Market (AIM) share transactions which will give a further incentive to boost the UK’s economic recovery by changing the tax rules for investments in micro-shares.

This change in tax rules will make AIM listed shares particularly attractive for inclusion in ISAs as profits are protected not only from Income Tax and Capital Gains Tax and also potentially Inheritance Tax.

However whilst the number of traders in AIM listed shares have increased significantly the problem remains that AIM Shares are notoriously volatile and not for the risk adverse.

IP Wales® searched all the companies listed on AIM for patent holdings between 1993 to 2013, analysed the 12,000+ patent records discovered and using patent analysis techniques reduced it down to 12 patents showing demonstrable commercial potential. Working with a Chartered Patent Attorney, a more detailed analysis of these 12 patents finalised it at five companies for the potential investor to review, Blinkx PLC (BLNX), Alliance Pharma PLC (APH/A), Seeing Machines Ltd (SEE), Sphere Medical Holdings PLC (SPHR), Surgical Innovations Group Ltd (SUN).   

Associate Professor Andrew Beale OBE, Director of IP Wales®, Swansea University  commented: “Whilst this research reveals 79 companies of interest our rating system will enable the potential investor to make their own determination whether these five companies in particular have the appropriate intellectual assets strategy and management team in place to get the best results in exploiting their patents to generate revenue and maximise profits”.

• IP Wales® is a £4m award winning business support initiative operating out of the Institute of International Shipping & Trade Law at Swansea University. 
• Since its launch in June 2002 IP Wales® has provided strategic advice to over 750 clients, helped to capture and protect 205 patents, 60 trade marks and 12 industrial designs around the World and furnished financial support for 25 IP licensing deals. 
• IP Wales® has found that the main ingredients for the success of knowledge-based businesses are access to advanced technology and know-how, an IP literate management team and finance.
• IP Wales® experience has led it to conclude that a better informed and more IP aware management team will make more commercial use of a poorer technology than a poorer management team will make of a better technology and that finance will seek out good management teams. Investors may therefore place more importance on the quality of the management team than the quality of the technology.
• The focus of IP Wales® has therefore become improving the quality of management by researching the law relating to intellectual assets management & transactions.
• The five companies identified in the report can be contacted through their PR agencies ie Sphere Medical (Ivar Milligan – Consilium-Comms 020 7920 2342); Blinkx (Charlie Palmer – FTI Consulting 020 7269 7100); Alliance Pharma (Mark Court – Buchanan Communications 0207 446 5000); Seeing Machines & Surgical Innovations ( Paul Cornelius – Walbrook 020 7933 8780).