Intellectual Property or IP should not be treated merely as legal protection against possible infringement or breach of one’s rights. The IP owners need to consider IP as their financial assets which are intangible in nature and may include: all or combination of Trademarks (brand, logos, slogans, packaging, etc.), Patents (novel products or processes), Copyrights (books, videos, paintings, databases, etc.), Designs (innovative designs of products), Trade secrets, Geographical Indication (special characters in a local produce), and the likes.
The IP creators or owners should not let their IP assets be an untapped territory. They should make efforts to convert these into money making assets. Even if they themselves do not have the required resources to harness the potential of their IPs, they can utilize effective means to monitise their idle IP.
A very basic example for monetizing IP is that software (say, ABC processes) which a company ‘X’ might have created for its own use and even patented the process. However, the company ‘X’ now has expanded its wings and diversified. It does not use ABC processes any longer. This patent should not be viewed only as a legal tool for protecting its rights, but as a financial instrument through which the company ‘X’ can earn good amount of money be licensing it to company ‘Y’, which is a non-competitor and into an entirely different domain of business, but at the same time needs ABC processes for its business.
Now, in this scenario, ABC processes of company X, being its IP, is used by company ‘Y’ for a consideration paid on a monthly basis. This helps in earning extra revenues for company ‘X’ without spending much on its resources and acts as a catalyst in mutual growth.
This example is one of the easiest and viable routes to monetizing one’s IP. There are various ways in which the IP owners can strategies and chalk out plans to convert their legal assets into financial ones and strengthen their portfolios.
Thus, monetizing IP can add a good source of revenue and strengthen the financials for IP owners.