Leveraging Your IP – 6 Step Licensing Strategy

May 7, 20130 Comments

 

Build Marketability

Whether you are an inventor with a market ready intellectual property, or a small business looking to leverage your IP assets, the starting point of your licensing process is creating a licensing strategy. The bottom line to a good licensing strategy is that it convinces a potential licensee to license your intellectual property.

Here’s a quick 6 step outline of how to create a licensing strategy: 

  1. Secure IP Rights -These are either registered (i.e. trademarks, copyrights or patents) or unregistered (i.e. formulations, trade secrets, or knowhow) property rights.
  2. Develop Prototypes or Identify Product Categories – Build a working prototype or if your IP is a trademark, examples of appropriate types of products (i.e. shirts, toys, posters, etc).
  3. Build a Track Record – Test marketing, market research, and customer sales info are key to convincing potential licensees.
  4. Research Potential Licensee – Internet search engines (Google, Yahoo), trade associations (i.e. Apparel, Toys, etc.), and manufacturing databases (Thomasnet.com, Hoovers) are good starting points.
  5. Define the Licensing Relationship – These are the key licensing terms and conditions, including IP rights, licensee use and performance milestones.  
  6. Create a Licensing Presentation – Summarize steps 1 – 5 and make it compelling. 

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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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