It is vital to make sure that your intellectual property asset is novel, competitive, and has room for continued development because you can monetize this asset and use it as a source of revenue. Intellectual property monetization is the process of trading, reassigning, or liquidating intangible assets, and these assets include:
- Trademarks (i.e., slogans, words, logos, etc.)
- Patents (i.e. inventions)
- Copyrights (i.e. drawing, written materials, computer code, etc.)
- Industrial designs (i.e., design of products, etc.)
- Domain names (i.e., website addresses, etc.)
- Trade secrets (i.e., the technique of doing something known to a select few.)
Several parties can use intangible assets simultaneously and as such, conducting due diligence and assessing intellectual property asset strengths are crucial when churning out new products, licensing, asset sale, collaboration, and other forms of monetization strategies.
We will talk about some of the strategies to monetize your assets below:
- New products: Turning your assets into profit-making products is the most elementary monetization strategy. In industries such as fashion, the IP portfolios often define companies’ creation channels; however, there is a technique behind assessing IP for monetization. The fundamental point is to use a more refined method to find the lacuna in existing or new markets to stand out.
- Collaboration: This is the contribution of your asset to a joint venture for collaboration and shared benefit. The goal is to accumulate a set of different assets and form an attractive group that can help you expand your market share. Prospective licensers may recommend harmonizing ability and tools within your current space. Another option is recognizing assets that function in a completely different industry but are useful to related needs in your market. You will be opportune to work with another brand and bring up new ideas to expand your market share.
- Licensing: You can also turn your assets into profit-making products by licensing third parties. Licensing allows the licensor to make money from its intellectual asset by charging the licensee in return for its use. Licensing plays a role in monetization strategies since there are real benefits of licensing IP and generating a win-win situation for both parties.
- Franchising: This is a type of licensing, which allows duplication of the franchiser’s business idea in another place by giving nonstop backing and teaching to the franchisee. Since there is the usage of IP assets in the running of the business; therefore, franchising has a fundamental link with the IP assets of the franchiser, and it becomes a win-win deal for both parties. Franchising helps franchisers to develop their business with the need for reduced investment and it allows the franchisees to enter an industry easily, as the business bases itself on an established brand or a recognized business ideal.
- Asset sale: You can also develop a revenue from selling your assets outright. The key is to find the proper fit between the asset and the potential buyer, based on market demands, competition, and the buyer’s current assets. Assets in the same industry and line of products as the buyer will capture more value from the buyer than otherwise.
If you are underusing your IP asset, you may want to consider opportunities to monetize your creative assets. There are IP firms who specialize in these strategies and you should try to reach out to them for more information on how to go about monetizing your assets.
Authors: Ufuoma Eferha & Oluwatobiloba Akinloye
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