Licensing at the Right Stage of your IP Development Process

November 7, 20120 Comments
Stage of IP DevelopmentMost IP progresses through the 4 key development areas – concept, research, development and commercialization. One of the keys to successfully licensing your IP is understanding the stage of IP development and how it impacts your ability to license your IP.  These include a number of licensing variables such as royalty rates, payments, investment risk, revenue potential, the development cost and time.As an example, if your IP is in the research or development stage, royalty terms for a licensing deal may be based on contingencies, or what-if. If your IP is in the commercialization stage, then royalty rates could be negotiated on firm terms. Keep this in mind as you develop your licensing strategy. When you’re in the concept stage, the value is very low, and increases as it moves toward the commercial stage. The higher the value of your IP, the stronger position you will be in to to negotiate a more valuable licensing deal.

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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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