To commercialize your intellectual property (IP), you need to make it marketable and profitable. IP can be a valuable asset for a company and can give it a competitive advantage in the market. Startups should develop an IP strategy to capitalize on their IP rights.
An essential aspect of IP strategy is focusing on IP administration. This involves creating IP assets through research and product development, as well as handling the process of applications, prosecution, and maintenance. Taking care of IP involves generating economic benefits from a portfolio of IP assets through effective portfolio management, integrating IP into business strategy, and maximizing its value. Furthermore, an effective IP strategy should always consider the trade-off between short-term gains and potential long-term losses that could impact the company’s business goals.
Large multinational companies have come up with many strategies for their IP portfolios. Before you can start using these in your IP strategy, you must know how they work. For example, large companies were the ones who first thought of and used methods like licensing and selling IP. In his book From Assets to Maximum Profits: Competing for IP Value and Return, IP expert James E. Malackowski says that the most influential IP portfolio management strategy includes:
1-Internal prosecution to be limited to new ideas that can be implemented quickly and cheaply.
2-Getting the assets that other people are using most effectively.
3-The portfolio that is rebalanced by selling or removing IP irrelevant to current management strategies.
Ways in which IP can be commercialized or can say exploited commercially are:
2-Types of IPR
There are also three significant ways for IPR commercialization are
1-Commercialization directly by the owner of the IP
3-By business collaboration
Other essential aspects of IP commercialization include IP valuation, IP audit, IP due diligence, and IPR enforcement. Let’s delve into these aspects in detail:
Accurate valuation of IP enables investors to maximize the potential of their IP portfolios and increase their returns. Various methods, such as replacement cost, market value, fair value, and tax valuation, can be utilized to determine the value of IP assets. These valuations aid in making informed decisions about developing or acquiring IP.
An IP audit is a critical step in IP commercialization, as it helps identify any existing IP assets within a specific part of an organization. It allows for a comprehensive analysis of all intellectual property created by the organization.
IP Due Diligence:
IP due diligence involves identifying and locating IP assets. It examines the nature and scope of IP to determine the associated benefits and risks of owning those assets. It also assesses whether the IP is free from any restrictions for its intended business use. Additionally, it identifies any obstacles or issues in transferring, pledging, or securing the IP assets. Furthermore, it calculates the costs involved in transferring the IP assets and divides them between the relevant parties.
In conclusion, one of the major challenges in commercializing IP in India is the need for more competent professionals in this field. Additionally, the complexity of IP laws in India, including the Copyright Act, Trademark Act, Designs Act, and Geographical Indication Act, makes understanding and utilizing them on a large scale time-consuming. Uniform IP laws, similar to the Insolvency and Bankruptcy Code 2016, would simplify matters.
As legal professionals, Aumirah possess the expertise to assist clients with tasks such as IP registration, monetization, protection, and providing guidance in cases of infringement or potential violations. For any such assistance reach us please get in touch with us at info@admin or our website at www.aumirah.com for valuable trademark insights.