Providing a valuable product or service to consumers can lead to increased profits for a business. Using appropriate intellectual property protections to protect unique products and services is one way in which a business can set themselves apart from others. Intellectual property can define a business and, if used strategically, increase revenue. Commercialization and monetization of IP can help a business stay ahead of their competitors. Many businesses lack the knowledge of these vital factors and their capability to transform their brand.
Manufacturing, Licensing, and Selling
Commercialization of an intellectual property asset can vary depending on specific business wants and needs. Commercialization can be as simple as manufacturing and selling your own product. However, it can be so much more. Commercialization may include licensing rights to third parties, selling assets to third parties and retaining some rights or royalties, and much more. Monetizing your IP is much more simple and simply relates to making money from your IP assets. As can be seen, there is a clear overlap between commercialization and monetization and it is not always easy to place a single act into either commercialization or monetization. Generally, however commercialization may demands resources and finances, while monetization, requires resources to create profit. In both cases, however, you will need to secure your right over the IP to prevent infringement and maximize profits.
An Important Step for Effective Commercialization and Monetization
The most important step in creating an effective commercialization and/or monetization strategy is to do your research. Understanding the market, consumers, and other driving forces can be the difference between success and failure.
Considerations for Making the Best Business Decisions
While commercialization and monetization are effective ways to grow your business, the following considerations can help you make decisions that are best for your business.
- Consider cross-licensing, where you exchange the rights of your IP to improve your product and services.
- Monitor the IP used by your licensees to check whether they are misusing or breaching the contract obligations and rules.
- Restrict the use of your IP by limiting the number of licensees or availability in the geographical locations to eliminate competition.
- Plan vigorous enforcement against infringement and invaders to protect your business integrity and customers' trust.
Different Kinds of License Agreements
You may want to consider the different kinds of agreements and examine which option suits your business the most :
- Sole license, where only the licensee and licensor use the IP, not any third party;
- Exclusive license, where only one licensee has the right to use the IP, not the licensor; or
- Non-exclusive license, where licensors issue the right to third parties to use IP.
Reach Out Now
Trademarks Patents Lawyer can provide assistance in with protecting, commercializing and monetizing your intellectual property. Connect with us for more information.