One of the biggest obstacles to making money with intellectual property is the way you think about it. Most people fail to “see” IP. They “think” of it as tangible products or services.
Intellectual Property is part of your everyday life. It is in nearly everything you do at home, school or work. If you read a book, watch a movie, surf the internet or drive a car, you are using intellectual property.
Intellectual property takes many forms such as formulas, technology, drawings, processes, software, or literary and artistic works. These forms become different types of intellectual property including patents, trademarks, copyrights, trade secrets, business processes and know-how. IP then becomes an intangible asset with legal rights.
Intellectual property develops over time and is the secret to creating new wealth building opportunities around the world. It is intangible wealth that becomes tangible wealth by commercializing (i.e. licensing) it in different ways, such as products, services or technologies.
The “Licensing Mindset” thinks outside the “tangible products or services” box. It “sees” new, innovative and useful applications for an intellectual property. Often it’s discovering new forms, markets or even bundling it with other IP outside of its core product or service. For instance, a patented design feature used to streamline an aircraft may work to enhance fuel-efficient design in automobiles. Or, a copyrighted rock-and-roll song may contain lyrics and rhythms that work well for the television ad for a motorcycle company.
When you think of licensing don’t think of it is just licensing a product or service. Here are four other ways to license IP:
- You can license your packaging design to competitors to level the retail packaging playing field and focus competition on product quality. This is a strategy used by one of the largest consumer packaged goods company’s.
- A second strategy is to license your technology to other competitors in the same in industry and accelerate its adoption by the market. Electric car manufacturers use this strategy.
- Licensing your delivery know-how creates new distribution channels for your products and services,such as through licensed franchises.
- Licensing your production to your competitors pays you every time they sell a product or service.
In today’s marketplace, you must think globally when using your IP assets. Licensing is borderless and can be done just about anywhere in the world. By applying a creative “licensing mindset” to the real value of your “IP asset” and the revenue opportunities it possesses, you can find yourself with a treasure trove of unrealized wealth.