The intellectual property (IP) of a person or a company is, in most cases, the most valued asset of that person or company. So much so, that well-established IP rights can be provided as security to financial institutions to obtain loans or form part of negotiations in large corporate considerations.
Obtaining a patent for an invention; a trade mark for a brand name; a design right for a new design or even having copyright in works is merely the first step in protecting and enjoying your IP.
The next phase in the successful exploitation of your IP is the commercialisation thereof. There are a multitude of ways to commercialise your IP in order to produce maximum profit from it which includes:
- IP LICENSING & FRANCHISING
One of the most powerful ways to maximise the efficiency of your IP is by licensing your IP rights to third parties.
All forms of IP (Patents, Designs, Trademarks, Copyright and Confidential Information) can be licensed to third parties in the form of a licensing or a franchising agreement.
In a licensing agreement, the owner of the right (the licensor) authorises a third party (the licensee) to utilise the rights in exchange for a fee or a royalty. The licensing of IP is the most common method of commercialisation.
Franchising agreements are specialised licensing agreements used to expand an existing brand or product and usually incorporates the use of Trademarks, Copyright and/or Know-how.
The terms of licensing agreements are open for negotiation between the parties.
Distribution agreements can be concluded with third parties in the event that one does not possess the necessary resources to distribute the product to a region where the demand is high.
- CESSION & ASSIGNMENT
IP is an asset, and as such, rights in IP can be sold or ceded to third parties or even used as security in commercial agreements. A cession agreement as well as assigning the rights to third parties are both forms of commercialising IP.
Depending on the resources available to an owner of the IP, there may exist a need to enter into an agreement with a factory or other large-scale manufacturer to reproduce the item or product in which the IP subsists.
Where two respective owners of different IP wish to collaborate all their IP and produce a final product, the profits generated by the joined IP can be shared between such parties and can be manifested in a profit sharing agreement.
For all intellectual property enquiries, kindly contact Stefaans Gerber or Louw Du Toit at email@example.com or firstname.lastname@example.org or phone (+27) 861 088 088 and ask to be connected to one of our IP specialists.
WHAT ARE THE BENEFITS OF COMMERCIALISING MY IP?
The purpose of the commercialisation of IP is to maximise profits and increase the efficiency of the business to its fullest potential. The commercialisation of IP will undoubtedly expand the business to the extent of your choosing.