How to monetize Intellectual Property
The main purpose of protecting your intellectual property (IP) is gaining all the benefits out of it. The registration of your rights and their maintenance or other steps you take to protect your IP are not the goal itself but only the instrument to achieve it.
Gaining additional value out of your IP is the main benefit and also the main reason why IP protection exists. This value can be created in various ways.
- License – Licensing is the most common and used way of IP commercialisation. It is basically the process of granting your permission to use your IP (your design for instance) for remuneration in return. Terms and conditions are mostly definied within the license agreement and can have various forms. You can, for instance, take percentage of profits from sales or you can take flat royalties every month or year. There are plenty of possibilities and we recommend to discuss these issues with IP expert to set up the terms and condition in your best interest.
- Usage – Using your own IP is the also the way of getting additional value to your products or services. For instance if you use your trademark which already have good reputation, customers will more likely choose your product. If you work with design, for instance jewelry design, you can craft your own jewels protected by design and exclude others from making the same design jewels. Customers will thus have to buy these uniquely designed products from you, as there is none else who is allowed to produced the products with same design.
- Sale – Every type of IP can have its value. As the IP is also the asset, such as vehicle, house or any other tangible item, you can sell it to someone else. Before considering the sale, always ask an expert in pertinent field and the IP valuator so you know what steps must be taken in order to make the smooth sale.