IP commercialisation is the process through which an existing intellectual property is prepared for release to market as a fully realised product or service. There are many ways to turn your killer idea into the next big product in your industry. Here are some ways to monetise that dream and turn into a profitable reality.
Licensing refers to the owner of the IP granting permission to an external entity (another person or organisation) to use the IP based on agreed terms and conditions. Licensing is often used by IP owners that want to commercialise and grow their brand but do not have the resources to manufacture, market or sell the product in-house. In licensing, the owner of the IP retains ownership, but typically relegates the right to commercialise the IP to the licensee. This includes the right to use the copyright, design, technology, and other aspects of the UP.
Franchising is very similar to licensing in that the licensee is granted permission to use the IP while the owner retains ownership of it, with a few key differences. The biggest difference between licensing and franchising is that the owner retains more operational control of the IP in a franchising agreement, and usually dictates how a franchisee operates the brand.
This is a great option for IP owners who would prefer to receive an up-front payment instead of royalty payments over a period. IP owners must keep in mind however, that assignment is an outright transfer of ownership of the IP to the new owner. Once the sale is completed, the old IP owner would lose control and ownership of the IP and would be unable to impose any obligations on the new owner.
How you choose to commercialise your IP would depend on many factors, such as your circumstances, market conditions, business capability, financial standing, and your IP itself, to name a few. Choose the right strategy to maximise profit and turn your dreams into the next big reality.