The Money Making Power of Licensing

March 23, 20160 Comments

There are two sides to intellectual property.   The better known side is the legal side which secures the legal rights to an intellectual property through registering a patent, trademark or copyright.  The money-making side of intellectual property is licensing.

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The purpose of licensing and intellectual property is to find, create and control money-making opportunities.  Finding the right IP fit for a businesses to license, or the right licensee fit for an IP owner can be challenging but the right combination could also be extremely lucrative.

Though intellectual property is something that never goes out of demand, in today’s challenging economic environment there is an even bigger need for innovative IP, and that need is generating tremendous new opportunities in the world of licensing.  The demand for new IP applies to just about every industry – services, products, brands, social media, new technology, apps, electronics, and more.

Licensing is a flexible money-making tool that can be used in many ways. It enables an IP owner to commercialize their intellectual property in a much shorter time than starting a business and in many cases it’s an alternative to opening a business altogether. For working businesses looking to grow, licensing offers several choices including licensing out their internal IP for extra revenues, or getting IP rights to expand into new markets, reach more customers or launch new products.

Many businesses use licensing to attract expertise and resources such as marketing, sales, product development and distribution. This may be one of the most overlooked benefits of licensing while it’s also one of its most powerful aspects.

Licensing leverages the cash flow of an intellectual property. The money-making power of licensing is the way that it can create a multiplier effect by leveraging an IP into multiple revenue streams.

Because intellectual property laws are structured similarly in most countries, licensing works around the world. With English being the “language of business”, most licensing agreements have become standardized and contracts drafted in the US can be used in just about any other country with some changes.

Click here to read the entire article.  Licensing Journal Rand Brenner Article

 

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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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