Protecting your intellectual property is the first step to opening yourself up to a series of possibilities within the market in which you operate. Its importance goes beyond offering the security and support that your patents, trademarks, or copyrights will not be misused or infringed.
The process of protecting your intellectual property also allows you to increase your creation’s value through different IP exploitation models, such as selling your invention on Amazon, or another type of online platform, among other alternatives.
Every IP owner has the option to increase the value of their innovations; however, it is important to know the best ways to do it, as well as the benefits that come with it. Therefore, in this post, we will delve into the details of IP exploitation, the ways to achieve it, and its advantages.
After receiving legal and professional advice from a patent attorney Miami to protect your inventions, you will know how to get the best out of your property from a business perspective that will give you exponential growth. Keep reading and discover much more about this interesting topic.
IP Exploitation
As we mentioned, having IP rights can function as a source of income if adequate strategies to commercialize from them are implemented. In this matter, IP exploitation refers to the process of using these rights, or protected products, to convert them into important assets to generate value through certain transactions and agreements.
The exploitation of intellectual property must be done with a complete understanding of the legal requirements and full protection of your assets. On the contrary, there may be economic losses, or the ownership of those rights may be compromised once certain negotiations are made.
To avoid these potential issues, we recommend you receive specialized consultation from professionals in the matter, such as specialists in commercial litigation Miami and IP law, to file the required applications in case your property is not protected properly, conduct IP audits and due diligence, and even find the appropriate models for IP exploitation.
How to exploit IP rights?
Building an IP exploitation strategy requires detailed planning, analysis, and consideration of the options available to find the best fit for the owner’s business model.
In this context, it is crucial to consider various factors to start with a plan of IP exploitation, however, here are some of the most common strategies to obtain some economic benefits from your intellectual property.
1.- Licensing
One of the most common exploitation models is through licensing. This method consists of a legal agreement in which a third party, also known as the licensee, can use the intellectual property of the owner, or licensor, in exchange for royalties or fixed fees.
The authorization to exploit the intellectual property through licensing can be established for a limited period of time, under certain conditions, or for a specific use, while the ownership remains unchanged. However, specifying the clauses in a commercialization contract is crucial to avoid legal issues and obtain adequate investment benefits from this strategy.
A license agreement is a good option to monetize immediately from the IP without investing in other business strategies, such as distribution, production, marketing, and more, without the financial risk that comes with the commercialization or manufacture of the asset.
2.- Assigning
An assignment, on the other hand, is a legal procedure in which the IP rights are transferred to a new owner. In this case, the original owner loses the possibility of obtaining benefits from its intellectual property after an economic retribution or an agreement.
Unlike licensing, the assignment is not irrevocable, making this exploitation method a viable option for those who are willing to quit their IP rights, whether to avoid maintenance costs of the property, to focus on other markets, or to offer the possibility to a larger investor to reach bigger goals with the asset in exchange for a fair deal.
3.- Joint Venturing
Joint venturing is based on strategic partnerships that help to leverage the IP to create new ways to access larger markets and increase the asset’s value.
This method involves collaborating with two or more parties interested in contributing with their different resources and experience to achieve the same business objectives. Through this type of association, it is possible to reduce investment risks due to the support of additional parties in cost and strategy sharing.
However, the dynamics of this exploitation model require the negotiation of clear guidelines for IP use to avoid legal infringements and royalty losses, and to create a productive environment for exponential business growth resulting in benefits to all parties involved.
Benefits of IP exploitation
The models of IP exploitation offer different alternatives to obtain specific benefits adapted to your business objectives.
Whether you opt for a licensing, assignment, or joint venture method, having the rights of your intellectual property allows you to earn revenue, but also to have a competitive advantage through differentiation in your market by creating unique products and services that can not be easily replicated.
Likewise, you can expand your market reach by collaborating with other companies to generate new technologies from your patent rights, while saving in development, research, and operational costs.
Once you start implementing IP exploitation strategies, you will also gain recognition to attract more investors, increase your asset value, and improve your revenue earning.
Now that you know the benefits and methods to leverage your intellectual property, you will improve how you administer your IP portfolio to make strategic business deals.
Remember that at Sanchelima we can offer you legal assistance to protect the rights of your patents, trademarks, copyrights, and more. Get in touch with us so we can give you tailored advice that will help you with the exploitation of your intellectual property.
