Press Release: January 12, 2004

HP Announces Intellectual Property Licensing Group to Leverage Growing Patent Portfolio

HP rockets to No. 5 on list of top U.S. patent recipients
PALO ALTO, Calif., Jan. 12, 2004

Seeking to leverage its rapidly growing patent portfolio, HP (NYSE:HPQ) - the company with "Invent" in its logo - today announced it has formed an intellectual property (IP) licensing organization designed to increase revenue and improve technical collaborations with partners.

The company moved up sharply in the annual list of top 10 private sector organizations receiving the most U.S. patents announced by the U.S. Patent and Trademark Office today, ranking No. 5, up from No. 9 the previous year. HP was awarded 1,759 U.S. patents in 2003, a 27 percent increase over the 2002 level of 1,385.

"We're proud of the fact that our focused innovation strategy - investing in technologies where we can lead and partnering for the rest - is paying off," said Shane Robison, executive vice president and chief strategy and technology officer, HP. "Over time, we believe that the new IP we are generating will help contribute to top-line and bottom-line growth in both established and emerging markets."

Worldwide, HP increased its patent portfolio from about 17,000 to 21,000 in 2003, according to Steve Fox, HP vice president and deputy general counsel, intellectual property. With 4,000 new patents worldwide last year, HP earned an average of 11 patents a day.

"After we added the word 'Invent' to our logo in December 1999, we launched a major effort to increase our intellectual property portfolio," said Fox. "We have been holding 'innovation' workshops designed to encourage the technical workforce to disclose more inventions. The results have been excellent; since that time, including the Compaq merger, we have doubled the number of worldwide patents we own."

To take advantage of the portfolio - one of the largest in the IT industry - HP has formed a centralized IP licensing organization to drive overall strategy and increase revenue. The scope of the effort includes HP's entire IP portfolio of patents, copyrights, trademarks and trade secrets.

"Historically, HP's intellectual property has provided value to the company in the form of innovative products and protection from our competitors," said Joe Beyers, vice president, intellectual property licensing. "This approach has served us well, but in many cases we have missed out on the opportunity to gain additional value from HP's inventions beyond product revenue. Capturing these additional opportunities is important to HP as the competitive environment in which we operate continues to intensify. Also, by making HP's intellectual property more broadly available, we can improve our collaboration with other companies."

HP already has several formal IP licensing efforts underway. They include:

  • LightScribe, a technology that uses standard optical drives to print labels on CDs and DVDs;

  • DVD+RW, a format for writeable DVDs;

  • Ultrium, a format for next-generation linear data storage tapes;

  • HP Auto-MIDX Networking, a technology for automatically configuring local area networks; and

  • Atomic Resolution Storage, a technology for high-density portable storage.

More information on these and other HP licensing programs is available at

To emphasize HP's new, strategic approach to intellectual property and increase the visibility, coordination and control of the company's IP assets, all IP has been moved into a separate, wholly owned holding company, which will be managed by the IP licensing organization. Financial benefit from licensing revenue will flow back to the business organizations that created the IP.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of HP's ability to obtain patents or otherwise protect its intellectual property, or license or enforce or its intellectual property rights or defend itself against allegations of violations of the intellectual property rights of others; any statements of the plans, strategies, and objectives of management for future operations; any statements of belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the possibility that the proposed listing may not be occur on the terms currently contemplated, on a timely basis or at all; and other risks that are described from time to time in HP's Quarterly Report on Form 10-Q for the period ended July 31, 2003 and HP's other Securities and Exchange Commission reports filed after HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2002. HP assumes no obligation and does not intend to update these forward-looking statements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at