When licensing your intellectual property, the main aim is to create a perception that your IP is valuable to the licensee and it’s in their best interest to license it.
Here are 3 secrets to creating the perception of value:
- A prototype that clearly illustrates the functionality, creativity and utility of your IP is your most important tool. We live in a tangible world, and the impact of being able to hold and try a new product vs. describing it or showing a drawing, is substantial. Videos, animation, and 3D printing are some low-cost ways to create a “tangible” sample of your IP. One of my clients created a short video to “show” how their sound technology worked.
- The second and often overlooked secret is providing relevant market data. The key here is “relevant”. Some company teams where many hats while others have larger staff. Your presentation has to include the critical market data they need to decide. But don’t just spit out a bunch of facts. The information must be weaved together to create perceptions of the IP value. I often start my presentations with the problem/solution information. The bigger the problem the more “valuable” the solution. That is supported by market statistics, customer testimonials, competitive products, focus groups, and other information to reinforce the IP value.
- You’re creating a partnership and the perception of you is the third secret. Based on first-hand experience, I can tell you the perception of the IP owner and how easy (or difficult) I think they would be to work with. People do business with people they like. Focus on success, supporting their efforts and working together.
Remember, companies don’t license IP, they license money. The more valuable a licensee perceives your IP , the more likely they will want to license it.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.