Is Your Business IP-Rich?

March 19, 20150 Comments

Recent studies show that high growth, IP-rich businesses are more resilient and perform better in today’s economy.

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The importance of IP to business funding is supported by a recent white paper from the World Intellectual Property Organization ("WIPO"). Its findings concluded that IP is now an essential element in obtaining venture funding.

Mainstream funding sources are also recognizing the value of intangible assets – specifically intellectual property. This recognition of IP as a “bankable” asset is the driving force behind new financing opportunities for IP rich business around the world.

  • Malaysia and Singapore are introducing guarantees to facilitate IP-backed lending;
  • Denmark and India are supporting the development of IP marketplaces;
  • Germany has sought to articulate the ‘Wissensbilanz’ to assist financial analysis of individual firms;
  • Brazilian banks are experimenting with IP audits prior to lending.
  • China has publicly set out its policies to make the country a world leader in IP by 2050,
  • Hong Kong set up a $5bn Innovation and Technology Fund targeting IP-rich businesses.

Global licensing generates billions of dollars and leaves no doubt that IP is an immensely valuable, highly trade-able and very portable asset class. Financial markets now recognize the importance of IP assets to a business. Intellectual property and, more broadly, intangible assets now account for the majority of business values. Businesses are investing more in new, intangible assets—databases, brands, processes, technologies, know-how and trade secrets — than new physical assets. Companies today are earning more from their IP assets than from tangible plants and equipment

Your business IP gains value the more widely it’s used and the more visible it becomes in commercial markets. The strategic use of your IP can open doors to new funding opportunities. It can be used as collateral for loans, equity financing, and even funding pension funds. It makes your company more attractive to investors and can set the stage for an exit strategy.

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About the Author ()

Rand Brenner is President / CEO of Licensing Consulting Group, an intellectual property management and licensing company specializing in assisting clients in IP Management, Strategic Consulting, Acquisition of Licensing Rights, and Property Representation. Rand has licensed some of the biggest Hollywood blockbusters, including “Batman” and the “Mighty Morphin Power Rangers”, both of which generated billions of dollars in worldwide merchandise sales. He has lead various international licensing programs as both licensee and licensor, and through consulting projects focused on licensing strategy, brand development, sponsorship sales and property representation.

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