Intellectual property or IP is an important business asset. Intellectual properties refer to any work, idea, invention, or creation of the human intellect, to which one can claim rights, and for which one can apply for a patent, copyright, or trademark right and protection. As mentioned, IPs are an important business asset because today, more than tangible assets, intellectual properties, though intangible, can guarantee greater success and higher profit for the company. This is the very reason why it’s also important that individuals and organizations alike should apply for intellectual property rights and protection to secure and protect your most valued assets.
More than its sole purpose of achieving greater success and company objectives, intellectual properties are also known to have substantial value since you can use it in so many ways, particularly as:
- a marketing tool
- building brand recognition and identity
- innovation
Just like other forms of property, you can use your IPs to help finance your business through processes such as franchising and outsourcing product distribution. To know more about how your IP assets can further help fund an organization, turn your eyes down on to the list below:
License Your Intellectual Property
According to Aumento IP, it’s important to understand and know that upon production or creation of intellectual property, you can, and you should license it out to other businesses. This allows all license holders of your IP to utilize, manufacture, distribute, and sell products and services based on your initial intellectual work. As a result, they pay you with either a percentage of the profit they get from your IP or as a fixed fee.
You can practically license out several types of intellectual properties; this includes patents, designs, brands or trademarks, and copyright.
In turn, once you save up from all outsource licensees, you get to finance your business in the long run.
Sell Your Intellectual Property
If you either don’t want to or cannot exploit your own intellectual property, you can opt to sell it to someone else, which only means that you will get paid for the intellectual property that you have so determinedly worked hard for. As a result, the buyer can freely utilize, in any way possible, and in any way they want, the IP that they have bought from you.
However, this has its downside as the price point of your IP cannot compare to the amount of time and amount you initially spent to produce or come up with this asset. Anyway, the brighter side is that you’ll have at least a guaranteed budget to finance for your business.
Franchise Your Business
Franchising is one of the best and most efficient ways of financing and growing your business. It helps companies to come up with much larger markets, increase profit, and expand your business market in cost-efficient and cost-effective ways.
Typical franchising allows other businesses to sell your company’s products and services under your brand. In regards to intellectual properties, franchising also allows the franchisee to use your company’s IPs, and that includes trademarks and copyright as well as your business model.
As a result, you get higher profit and allocated budget [possibly] enough to finance your on-going business. Franchising is actually highly advisable as this can not only help you finance your business, but it also helps more consumers know your brand.
Wrapping Up
These are only some of the most effective ways on how your IP assets can help finance your business. Aside from its sole purpose of guaranteeing your company higher profit, it can also be used as a way of building your business and establishing a stronger and more compelling brand. Just make sure that you educate yourself well enough to know the ins and outs and legal terms of intellectual properties, so you don’t end up with faulty documents and less capital than expected. Other than that, once you hire a good lawyer to take care of your IP needs and other materials, you’re good to go.
