Are you exploiting your intellectual property to its full income generating potential? If you are keeping your IP for the exclusive use of your particular business, you may be missing out on a lucrative and untapped source of revenue.
By licensing intellectual property, such as: trademarks, copyright, logos, designs, patents, domain names and business processes (for example), you can create new foundations for your business’s revenue and wealth. Technology and pharmaceutical companies have known this for decades. Unfortunately, it’s taken other industries and businesses a long time to catch up –largely due to a lack of imagination, experience and professional advice.
However, it’s never too late because the market place is continually evolving and changing. This includes a shift in recent times away from traditional assets such as plant, raw materials, etc, to the commercialisation of IP as the main source of a company’s wealth. The crucial point here is that companies and businesses are finally beginning to realise that unlike other assets, which depreciate, IP assets actually appreciate.
Today, competition in the market place is all about innovation and re-invention. To stay ahead of the pack, businesses rely on the use of technology and processes, which are subject to copyright and patent laws. By entering into licensing agreements and royalty contracts, businesses are free to continue to manufacture products and service their clients. The owners of the IP profit form an ongoing revenue stream and the licensees profit from the technological and marketing edge these IPs provide.
Commercialising IP is especially relevant to businesses that are under resourced or under financed to further develop the IP themselves or carry it to another level in the marketplace. By commercialising IP your business can benefit beyond the local market. The potential of commercialised IP should be examined in a global context. New products and services are being created and manufactured all over the globe as a direct result of intellectual property invented half a world away.
One of the most obvious examples of IP in the global marketplace is the use of brand names and logos – collectively referred to as Trademarks. These are intangible assets, that is, they are not the type of assets you can touch in a physical sense. However, their value comes from the fact that they possess highly valuable brand name recognition. The positive effect of this can be seen on the company’s annual bottom-line profits and sales. The strength of high recognition brand names and logos is often credited as the driving force behind global sales of many international companies. In other words, the brand name sells itself.