Strategic IP: Fit for the Future
More than 200 respondents reveal that IP functions typically fall into one of three positions within their organizations.
About
are seen as Strategic: valued as innovation enablers, revenue drivers, or core business assets.
Another
occupy a Transitional role: where perceptions vary across business units.
The remaining
operate with an Operational focus: viewed primarily as support functions or cost centers.
This spectrum of roles reflects a critical inflection point: organizations that elevate IP from a transactional necessity to a strategic enabler are better positioned to unlock growth, foster innovation, and create enduring value.
Q7. How is your IP function primarily viewed within your organization? (Select one), All Participants, Perception Segmentation
These perceptions have the potential to influence everything—from budgets and leadership access to how outside counsel are chosen. The question isn’t which model is best, as sector and market dynamics largely dictate reality. Instead, it’s what differentiates strategic perceptions from operational ones in terms of capability, approach, and business integration.
Our research shows that perception differences stem not from what IP functions do, but from the strategic intent behind those actions. Portfolio optimization and cost management dominate near-term priorities across all segments:
of respondents focus on patent portfolio optimization, while
prioritize cost control.
Yet these shared priorities serve very different purposes depending on whether the IP function positions itself – and is positioned by the business – as a strategic driver or as operational support. While sector dynamics, company size, and geographic market conditions influence this positioning, the data reveals consistent patterns in how strategic intent shapes capability development and resource deployment.
Q2. What are your top IP priorities for the next 12 months? All Participants
One executive articulates the operational mindset, stating
“
The ultimate objective for us is still protecting our business, maintaining competitive edge, instead of generating revenues.”
Here, portfolio optimization serves a primarily protective function – maintaining competitive position through defensive IP strategy rather than pursuing active monetization or revenue generation.
Compare this to a more strategic framing, which – according to the Chief IP Counsel at Ford Motor Company – involves
“
’aligning our IP strategy with where the business is and where it may go. When I say, may go, [I mean] it’s not linear, so [you need] to build in some optionality that even our current leadership may not see ... I often think the role of in-house IP counsel is to have a crystal ball into the future and see what is possible and ... have pathways to those possibilities.” The challenge is inherent in this forward-looking role: “Whatever our strategy is today, it will be different five years from now. And so, we have to position the company to be able to take multiple routes but do that cost effectively. And that’s a challenge.”
For strategic functions, portfolio optimization is more likely to mean strategic curation – actively pruning assets to strengthen enforcement positioning, enhance licensing opportunities, and align IP investments with business growth areas. The activity may appear on the surface to be identical, but the purpose diverges significantly.
If the data suggests that strategic intent drives perception, then business alignment determines whether that intent succeeds or stalls. The data below shows that all IP functions recognize strategic alignment with the business as a capability worth strengthening. However, the priority level differs significantly between our segments, with IP functions seen as strategic showing more mature strategic integration profiles than operational ones:
of Operational IP functions identify strategic business alignment as a key area to develop,
compared with
of Strategic IP functions – a 10-percentage-point difference that suggests Strategic IP teams have already achieved stronger business integration.
The data reveals that while business alignment remains a development priority across all IP functions, those viewed as operational face a more pronounced challenge. Strategic IP functions, having embedded themselves more deeply in commercial decision-making, can focus on refining alignment rather than establishing it from scratch.
Q9. Which of the following capabilities would you strengthen in your IP function? (Select up to 3), All Participants, Perception Segmentation
Business alignment maturity plays out in real terms – it shapes where the IP function sits in the organization and how much access it has to leadership. IP functions embedded in business strategy don’t just react to decisions, they help shape them, influencing planning and development before critical choices are locked in.
As the Chief IP Counsel at Ford Motor Company emphasizes,
“
Building that trust [with the C-suite] is beyond important ... If you’re not there, you can’t help guide leadership in the right way”.
The evolution from viewing IP as a cost center to recognizing it as a strategic driver has been underway for years, though the pace and extent of this shift vary significantly by industry and organization. Building this integration requires sustained effort over significant timeframes. While some sectors – particularly pharmaceuticals – have long treated IP as strategically central, many organizations are still in the midst of this transition. And while the investment may seem steep, the payoff can be transformative.
As one longstanding Deputy Chief IP Counsel at a Fortune 100 Industrials Company explains,
“
For many years I’ve been here pushing the message of how IP adds strategic and monetary value, and I feel like the last few years, we've really shifted to where the executive office sees the value of the things that the IP team is doing.”
This evolution reflects a deeper cultural change. The same executive continues,
“
Over time, the executive office has come to recognize how our IP strategy directly contributes to the business. There’s now a clear understanding that we’re not just protecting assets—we’re driving value, aligning with core business priorities, and delivering measurable return on investment.”
Similar sentiments echo globally. A senior IP leader at a Japanese Pharmaceutical Company shares,
“
Ten years ago, our function was considered as a cost center, but we’re now positioned as a partner to create value for our company.” This shift comes with an expanded mandate: “Our role is shifting to be the strategic partner of the senior management. This is the biggest change in our role, and the expectation from senior management.”
IP functions positioned as strategic partners increasingly encompass active monetization and innovation enablement rather than purely protective activities.
As Oppo’s Senior IP Counsel notes, portfolio strength shapes external perception:
“
We have a significant portfolio and because of this portfolio, other companies are seeing us as a company of innovation.”
This market positioning – even without active monetization – creates strategic value through competitive signalling and partnership opportunities.
Strategic value manifests in partnership with business objectives. As one Senior IP Counsel puts it,
“
Our function certainly partners with the business on their goals and how to achieve them. IP really is something that protects the lifeblood of our company.”
This forward-looking role demands new capabilities. Traditional legal expertise alone isn’t enough. As the VP of IP Litigation at Merck puts it,
“
It is becoming increasingly important for in-house counsel to have a business mindset. IP counsel need to be not only stellar IP attorneys but also be able to communicate with the business in a way that’s understandable, so business leaders can make decisions and take into account complicated risk scenarios.”
IP functions deploy technology with varying strategic intent – some primarily for efficiency, others for competitive insight.
of functions perceived as strategic assets use data analytics for portfolio management
compared to
of those perceived operationally.
of strategically positioned functions use AI for prior art searches
versus
of those in transitional positions.
Q4. Which technologies are you currently using to manage your IP function? All Participants, Perception Segmentation
The percentage gap may look modest, but it signals a meaningful difference in approach and intent. Strategic IP functions use AI not just to streamline tasks—they deploy it to influence R&D direction and shape competitive positioning before patents are even filed. Operational IP functions, by contrast, apply the same tools mainly to cut costs and improve efficiency. The technology is identical; the intent is transformative.
Sonova’s Director articulates the challenge in delivering on this strategic aspiration,
“
AI will shorten development cycles and thus require us to respond quickly when delivering tailored IP work products. The IP team must be as dynamic as the business environment and support an agile organization. To prevail in business, you need to have the best IP strategy on board.”
Technical expertise stands out as the most critical capability gap for IP functions:
identify it as a top priority for improvement.
Yet, the way expertise is perceived and leveraged differs dramatically depending on organizational positioning.
For example, when selecting external counsel, strategically positioned IP teams strongly favor deep industry knowledge:
cite it as essential,
while only
of operationally focused teams share that view.
This 15-point gap underscores a fundamental difference in expectations: strategic teams see expertise as a driver of innovation and business alignment, whereas operational teams often view it through a narrower, support-oriented lens.
The same pattern emerges in the demand for proactive strategic advice:
Sought by
of strategic functions
compared to
of operational ones,
signalling that the most forward-looking IP leaders are redefining what “expertise” truly means.
Q9. Which of the following capabilities would you strengthen in your IP function? (Select up to 3), All Participants, Perception Segmentation
This expertise orientation intensifies for high stakes matters. Survey respondents emphasize the need for
“
Specialized technical knowledge and practical experience necessary for advanced fields” and stress that “understanding emerging technologies essential to ensure IP portfolio is future proof.”
The expertise IP functions seek from external counsel extends beyond technical knowledge to encompass business acumen and relationship intelligence. Multiple senior IP professionals we interviewed emphasized the importance of a combination of technical, cultural, and emotional intelligence. As Global Intellectual Property Counsel at Red Bull states,
“
If legal challenges keep increasing, you need to grow your team. You need to make sure that they’ve got capacity to handle the challenges, and that they have the budget to get the best local counsel that’s available.”
The call for deeper expertise reflects a reality where established playbooks no longer apply. Fragmented regulations, increasingly sophisticated enforcement strategies, and AI-driven workflows demand counsel who can deliver solutions where precedent offers little guidance. Success now requires holistic perspective—integrating cultural context, regulatory insight, and business priorities—while blending technical mastery with strategic judgment. Formulaic approaches won’t solve novel challenges; what’s needed is expertise that anticipates complexity and turns uncertainty into advantage.
The data reveals that strategically positioned IP functions share three defining traits:
(i) deep technical expertise paired with commercial fluency;
(ii) technology leveraged for competitive insight, not just efficiency; and
(iii) stronger business alignment that positions IP as a forward-looking partner in planning. This orientation is gaining ground: nearly half of IP teams now operate with a value-creating mindset, using priorities, technology, and counsel choices to inform business strategy rather than merely react to it. As regulatory complexity, technological disruption, and cross-border challenges intensify, the real question for IP leaders is how to build the capabilities that turn IP into measurable business value—and make that value visible to the organization.
This website is operated by Hogan Lovells International LLP, whose registered office is at Atlantic House, Holborn Viaduct, London, EC1A 2FG. For further details of Hogan Lovells International LLP and the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses ("Hogan Lovells"), please see our Legal Notices page. © 2026 Hogan Lovells.
Attorney advertising. Prior results do not guarantee a similar outcome.