Unleashing the power of ideas: How to commercialise your Intellectual Property.

In the dynamic landscape of business and innovation, intellectual property (IP) stands to be one of your most valuable assets. Whether you are an individual, an inventor, or a business owner with a portfolio of creative works, the commercialisation of your IP should be at the heart of your business strategy. In this article, we explore the steps and available options when it comes to scaling, growing and monetising your IP. 

1.      Identify, Understand & Protect Your Intellectual  

First and foremost, it is crucial to have a comprehensive understanding of the IP being created and to ensure that ownership vests with the right entity or individual. The next step is to assess whether any of that IP can and should be protected and, where relevant, secure that protection. This may involve obtaining patents, trademarks, or designs or relying on copyright and/or non-disclosure agreements – it all depends on the nature of your IP, your budget, and your roadmap.

Securing your IP will safeguard your innovations and enhance their market value. Always try to protect your IP before launch and before sharing your ideas with any third parties, including any potential investors. In some instances, disclosure of your IP can restrict your ability to protect it.

Also, keep detailed records regarding the creation and use of your IP and take steps to enforce it – IP protection is a journey and one that requires ongoing investment. 

2.      Conduct Market Research:

Analyse and understand the market potential of your IP. By identifying potential customers, competitors, and market trends, you will have a better understanding of how your IP fits into the existing landscape and how to tailor your strategy accordingly.

3.      Identify The Right Commercialisation Strategy:

Sometimes, commercialisation is as simple as launching your own brand or product. More often though, commercialisation means working with third parties to capitalise on expertise, to obtain access to new markets and demographics, to increase revenue or funding and/or to free up time to focus on other aspects of your business. The approach will always depend on your commercial goals and priorities at any given time but here is a list of options that you may want to consider: 

• Licence Agreement: By licensing your IP, you allow third parties to use, produce, or sell your IP in exchange for royalties or licensing fees. This can be a mutually beneficial arrangement that expands your market reach without the need for significant upfront investment. There are 3 different types of licence – sole, exclusive, and non-exclusive. When you are considering a licence arrangement, be sure to choose the right one for your business. 

• Franchise Agreement: A Franchise is a special type of licence which enables the replication of the franchisor’s business concept in another location by providing support and training to the recipient (the franchisee). A franchise is a great way to expand your business with minimal investment whilst maintaining maximum control.

• Joint Ventures (JV): A JV is a business alliance of two or more independent organisations to undertake a specific project or to achieve a certain goal. The parties (generally) each bring their own IP and expertise to the venture with the aim of growth and enhancement. A JV is a great way to share risks and liabilities but, ultimately, you also share in the success (and the ownership of any jointly created IP) which can sometimes be problematic.

• Sale/Assignments: For many companies, this is an exit strategy - relinquishing ownership of your IP for a fee. That said, it doesn’t have to be an exit from your business, it can just be an exit from a part of your business which allows you to focus and invest in new or existing ventures.

4.      Business Plan

Create a detailed and tailored Business Plan for each asset, considering your preferred strategy. Your Business Plan should define your target market, pricing, distribution channels, and revenue projections. A well-thought-out Business Plan will serve as a roadmap for your commercialisation efforts and will help to attract potential investors and/or collaborators.

5.      Form Strategic Partnerships:

Consider forming strategic partnerships with established companies in your industry. Collaborating with industry leaders can provide access to resources, distribution networks, and expertise that can help accelerate your Business Plan. Negotiate partnerships that align with your goals and contribute to the overall success of your IP.

6.      Leverage Digital Platforms & SMEs:

In the age of digital connectivity, online platforms can be powerful tools for commercialising IP. Utilize e-commerce platforms and licensing marketplaces to reach a global audience and to generate interest in your brand/products.

Also, make the most of subject matter experts to help guide your business. Onboarding consultants with a specific skillset is a cost-effective way to upskill your workforce and bolster your commercial potential. 

7.      Stay Informed about Market Trends:

Continuously monitor market trends and technological developments and adapt your strategies and Business Plan to align with emerging opportunities. Also, ensure that your IP remains relevant, competitive, and protected.

Conclusion

IP commercialisation requires a strategic and well-executed approach. By understanding the value of your IP, conducting thorough market research, protecting your rights, and exploring diverse avenues and relationships, you can unlock the full potential of your innovations. Embrace the entrepreneur spirit, adapt to changing landscapes, and turn your IP into a lucrative asset that drives both innovation and financial success.

Top Tip: Always engage an IP professional at the start of your commercialisation journey.  The right advice, from the outset, should lay the foundations for success and help you to mitigate risk. 

Disclaimer: Re-think Legal is a boutique legal consultancy providing businesses with legal support, not legal advice. The information contained in this blog is simplified and must not be taken as a definitive statement of either the law or practice of any given jurisdiction and does not constitute legal advice.