Bio: David Martin is an expert in domestic and international technology transfer and in patent enforcement and issuance. He is the founding CEO of M-CAM, a Charlottesville, Virginia, corporation that developed and commercialized the world’s first intellectual property characterization and monetization technology. In the 1990s, he created the first collateral enhancement products that allow regulated financial institutions to use intangible assets as collateral in commercial credit.
Mr. Martin has been an assistant professor at the University of Virginia’s School of Medicine, where he founded and was executive director of the school’s first for-profit R&D corporation. Engaged in domestic and international technology transfer, clinical research, and financing, this company pioneered techniques for innovation management that have become industry standards. He has also founded numerous businesses domestically and internationally in for-profit and nonprofit settings. He was the founder and CEO of Mosaic Technologies, Inc., an international technology transfer company. He founded and served on the board of the Charlottesville Venture Group, and he serves nationally on the board of the Research Institute for Small and Emerging Business (RISEBusiness) and interacts frequently with policymakers on matters regarding the financial and legislative treatment of intellectual property. In 1999, Mr. Martin was appointed by the governor of Virginia to serve on the Joint Commission on Technology and Science. He also serves on numerous corporate and civic boards in the United States, Asia, and Africa.
He earned his B.A. from Goshen College, his M.Sc. from Ball State University, and his Ph.D. from the University of Virginia.
Expertise: The Accounting and Financial Effects of Intellectual Property
Fellowship Focus: David Martin will spend his fellowship collaborating with his faculty hosts on a research project on the accounting and financial economics of intellectual property. In particular, he and his faculty hosts will assess the impact of patent redundancy on share prices, reported financial performance, and tax-planning behavior. According to Mr. Martin’s estimates, as great as 35 percent of patents are functionally redundant. Recent studies by the U.S. Federal Trade Commission and the University of California at Berkeley report that the majority of patents have no link to any business creation. This raises a number of questions: Does the public capital market recognize patent redundancy and quality insufficiency, and the economic materiality of some patents versus others? Is patent-related market volatility reflected in reported financial results? How are patent redundancy and quality deficiency exploited in tax planning?
Mr. Martin and his faculty hosts will begin their project by developing up to three case studies for use in M.B.A. courses. These cases will present situations in mergers and acquisitions in which judgments about the value of intellectual property are important. The case settings will exercise students’ critical thinking about patent integrity and its implications for the reported financial performance of firms, corporate tax accounting, and the design of M&A transactions.
The case studies will draw on M-CAM’s database and will present a profile of the target and buyer firms’ intellectual-property positions. In light of this information, the task for students will be to address the realism of the financial reporting after the acquisition, assess the tax implications of the intellectual-property position, and consider the implications for price and deal design.