Your business is sitting on a source of capital that you’re not using. If fact, you probably don’t realize you own it. Even if you are “commercializing” your IP by selling your product or services, you might be overlooking new ways of using it.
Your intellectual property is a capital resource. It opens doors to getting funding for your company. IP is used as collateral for loans, equity financing, and even funding pension funds. Effectively leveraging your IP assets makes your company more attractive to investors or sets the stage for an exit strategy.
The financial markets now recognize IP and valuable assets to a business. Intellectual property and, more broadly, intangible assets now accounts for about 80 % of a company’s value. Businesses are investing more in new, intangible assets—databases, brands, processes, technologies, know-how and trade secrets — than new physical assets. Companies today are earning more from their IP assets than from tangible plants and equipment.
Investors and lenders are increasingly focusing on businesses making the most of their IP assets. Different investors/lenders value your IP assets in different ways with different degrees of importance to your IP rights. The trend however, is towards an increasing reliance on IP assets as a source of competitive advantage.
A good example is the first ever IP Dealmakers Forum. The event connects investors with intellectual property information and opportunities. It’s goal is to overcome one of the biggest challenges in the world of IP – an in-efficient market for connecting IP owners and buyers. This event brings IP information providers (i.e. attorneys, licensing agents, IP executives, etc.) together with investors who understand how to leverage IP, manage risks and connect with the right players.
The real value of your business IP is the way it’s used as an important part of your business strategies. It impacts every area of your business – sales, marketing, capital raising, business development, and R&D. In an economy that increasingly values intangible assets, investors are focusing on businesses that manage and leverage the full value of their IP assets.
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.