Is Your IP a Hidden Money Source?

November 11, 20150 Comments

Your business is sitting on a source of capital that you’re not using. If fact, you probably don’t realize you own it. Even if you are “commercializing” your IP by selling your product or services, you might be overlooking new ways of using it.

Your intellectual property is a capital resource. It opens doors to getting funding for your company. IP is used as collateral for loans, equity financing, and even funding pension funds. Effectively leveraging your IP assets makes your company more attractive to investors or sets the stage for an exit strategy.

The financial markets now recognize IP and valuable assets to a business. Intellectual property and, more broadly, intangible assets now accounts for about 80 % of a company’s value. 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.

Investors and lenders are increasingly focusing on businesses making the most of their IP assets. Different investors/lenders value your IP assets in different ways with different degrees of importance to your IP rights. The trend however, is towards an increasing reliance on IP assets as a source of competitive advantage.

A good example is the first ever IP Dealmakers Forum. The event connects investors with intellectual property information and opportunities. It’s goal is to overcome one of the biggest challenges in the world of IP – an in-efficient market for connecting IP owners and buyers. This event brings IP information providers (i.e. attorneys, licensing agents, IP executives, etc.) together with investors who understand how to leverage IP, manage risks and connect with the right players.

The real value of your business IP is the way it’s used as an important part of your business strategies. It impacts every area of your business – sales, marketing, capital raising, business development, and R&D. In an economy that increasingly values intangible assets, investors are focusing on businesses that manage and leverage the full value of their IP assets.

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About the Author ()

Rand 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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