An intellectual property (IP) portfolio is a collection of patents, trademarks, copyrights, and trade secrets. A successful IP portfolio is essential to the success of your business. Intellectual property law protects companies and individuals from unauthorized usage of their ideas, creations, and inventions. As a business continues to add to its intellectual creations, certain measures should be implemented to capitalize on its assets. A company should consider building its IP portfolio through licensing, understand and remember licensing costs, and consider whether the licensing agreement is compatible with the company’s values.
Building An IP Portfolio Through Licensing
Once a product has launched, there are various ways to promote the product to the general public and build brand recognition. Licensing is an example of such measures. A licensing agreement is a contract between a licensor, the owner of a product, and a licensee, a person or company seeking permission to sell, distribute, or manufacture the owner’s product. A licensing agreement may also transfer the right to sell, distribute, or manufacture an invention. The owner of the product receives a one-time lump sum payment or royalty payments.
Keeping IP Licensing Costs In Mind
As entrepreneurs consider licensing opportunities, it is essential to keep costs in mind. Licensing may be expensive for businesses, and thus it is crucial to engage in a cost-benefit analysis. Most of the cost of marketing may fall to the licensee and thus the licensor must relinquish control over how the product is marketed. The licensee will have power over how the product or idea is presented to consumers. Despite the cost associated with licensing, the main goal should be to increase the value of a business’s IP portfolio. The success of the product is possible with the use of appropriate business relationships and licensing.
Compatibility of the Licensing Agreement with Company Values?
Business relationships require that the partners share the same vision. The same principle applies to partners in a licensing agreement. The licensor and licensee must agree on the concept and direction of the business. An agreement between the partners will ensure that the owner’s intent in creating the product and the owner’s values are not disturbed. The licensor and licensee must share a common focus. With that, the company’s portfolio and the brand’s integrity will not be disturbed.
IPS Legal Group: Having The Right Legal Team
It is imperative to have the right legal team protecting a company’s intellectual property. IPS Legal Group, P.A. is that team. A well experienced legal team is needed to draft, negotiate, and analyze the working components of a licensing agreement. The right team is essential to the success of a company’s IP Portfolio. Contact IPS Legal Group today!