The biotechnology industry is based upon strong positioning of intellectual property (IP). Although IP ranges from trademarks, to proprietary methodology, to know-how, the most potent IP positioning in biotech is in the form of issued patents.

Current Medistem operations provide a continuous rich flow of clinical observations that are translatable to proprietary protocols and patentable findings in a wide variety of areas. These patents are vital from several perspectives. The proper positioning of patents is important in providing a defensive network that inhibits competitors from entering our operating area. At the same time IP can enable a company to be on the offense and proactively target other market segments. Specifically, offensive patent positioning might cover areas of IP that Medistem does not seek to develop in the near-term future, but that other companies are operating in. By proper positioning a substantial revenue stream of licensing royalties could be generated.