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Ownership of IP rights: Do you see IP as an asset and consider its licence, sale or purchase as part of your commercial strategy?

24 May

5 mins

Intellectual property (IP) is an asset to any business, and as such can be subject of transactions.  In other words, IP can be bought or in-licensed, and equally, your own IP can be sold and out-licensed.

Purchasing and In-licensing someone else’s IP – can this give you a competitive advantage?

Owning IP or having a secure licence in IP can provide a degree of exclusivity in a market, or at least some advantage, and so can be used to attract investment. Other benefits of purchasing or in-licensing IP include:

Selling and out-licensing your own IP – can this be profitable for your business?

IP ownership alone does not guarantee any revenue, however, deriving exclusivity from marketing the invention covered by the IP can increase the chances of making a profit. All IP rights can also be sold or licensed out for a fee, which can also enhance profitability. A sale would result in a transfer of IP right ownership to the purchaser, in exchange for an agreed sum of money. On the other hand, a licence provides the licensee with rights to benefit from the IP right in exchange for royalties, while the owner remains the same and retains overall control. Other benefits of selling or licensing IP include:

An experienced IP attorney is well equipped to help you audit your IP, and to help investigate the existing IP landscape when you need to decide on whether to enter an IP transaction. The associated agreements can be complex and must be carefully drafted to ensure optimal benefit to your business. Thus, we are always at hand to assist you in any way we can.

Written by: Lionel Newton