IP commercialization is converting intellectual property (IP) in monetary value. IP commercialization is the process by which an IP is monetized to recover investment made in the research and to earn compensation against such investment. The IP commercialization can be carried out by several ways including through licensing, assignment, franchising, joint ventures and spin-offs. IP Commercialization involves acquisition/licensing-in of one or more intellectual properties (IPs) or transfer/licensing-out of one or more intellectual properties (IPs).
IP licensing is an express authorization granted by the owner of Intellectual Property (IP) to the licensee for working of Intellectual Property (IP) preferably for commercial purposes. The license can be exclusive or non-exclusive. An exclusive IP license is somehow equivalent to assignment which can be granted to one licensee and provides the licensee an exclusive right to commercially exploit the Intellectual Property (IP) of interest. However, the non-exclusive IP license can be granted to more than one licensee simultaneously.
IP Assignment is complete transfer of ownership of an Intellectual Property (IP) from Assignor to the Assignee. Assignment is used as a synonym for sale of intellectual property (IP). Unlike, license the assignment is perpetual and not for specific period. Once an intellectual property (IP) is assigned, the transaction is irrevocable.
Franchising is a way to extend the existing product or services through franchisee where the franchisor is being paid by the franchisee for using intellectual property (IP) of the franchisor. A franchising model allows the franchisor to expand its business without having recourse to additional capital. In effect, through a franchising model, the franchisee duplicates the business of the franchisor in other places. It is another form of licensing albeit with peculiarities.
Well-known brands are best suited example of expanding their business worldwide through franchising. This is the case with Mc Donald, KFC, Subway, Burger King, Hilton Hotels etc.
A joint-venture is an association between two or more businesses to undertake a common objective or to achieve a certain goal. The two businesses share risks and profits. They contribute with their intellectual property (IP), that is, they bring in their intellectual property (IP) assets and also work together to develop further intellectual property (IP) assets. Intellectual property (IP) is thus central to any joint venture and therefore constitute a form of commercialization of intellectual property assets.
This is where a new business entity is set up using entirely intellectual property (IP) assets by its holding business entity. Intellectual property (IP) assets are used as a basis for the business and the fund is raised by selling or distributing new shares of its holding business entity. Most of the times spin-offs or spin-outs where the companies may not be well-equipped.
IP commercialization involves multiple stages e.g. identifying potential partner/collaborator, due diligence of the IP rights, negotiation for acceptable terms and condition and an effective technology transfer. We provide best in class IP commercial services through our techno-legal team members working with our associates having expertise in market research.