If your business has IP, you should consider how it can be “packaged” and licensed. Licensing domestically and internationally can be a quick and lucrative strategy to increase revenues and expand markets.
Global markets open new opportunities in which a small business can license it’s IP without cannibalizing its existing sales. A company’s IP can have different applications for new markets outside of the company’s core products or services. And in a global marketplace, an intellectual property can have significant value for one company even as its value may be nearing the end of its life cycle for another.
Foreign licensing agreements are a great way to expand the market for your intellectual property and to profit from your intellectual property. Partnering with foreign companies who already have a business network in place is one of the fastest ways to enter foreign markets. The key to a successful licensing partnership is choosing your foreign licensees wisely, negotiating the right terms, and monitoring their marketing and sales activities.
The first step is researching potential licenses to determine if they would be the right licensing partner. You’ll want to verify the company and its track record. References and business history with other licensors, customers, and vendors and in some cases banking are generally the best sources for evaluating a potential foreign licensee. Doing a quick reference check will give you information about the company and its management, and help you decide whether or not the company would be a good licensing partner.
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.