Monetizing intellectual property is an essential piece of the innovation cycle. The process requires a thorough understanding of the technology being commercialized or otherwise monetized, as well as the technology landscape and your organization’s IP and business strategies. These five considerations are indispensable as you plan for successful IP monetization.
1. Understand the Technology Landscape
IP commercialization requires a thorough understanding of similar technologies and how companies, particularly your competitors, use them. Looking beyond direct competitors allows you to predict how other organizations’ intellectual property might impact your efforts throughout the innovation cycle. You’ll have a greater understanding of how other patents may pose a risk to your ability to protect or monetize an invention. You may also find that a company outside your industry has a relevant technology beneficial to your business and IP monetization strategy.
2. Prioritize Innovation with Potential
Your IP monetization strategy begins long before you’re granted a patent for your invention. Investing in research and development with commercialization in mind and prioritizing promising innovation is essential. A tool like the Technology Vitality Report can help identify novel ideas with potential for monetization and allow your organization to bring them to market faster.
3. Determine the Value of Your IP
Valuing patents and other intellectual property is a complex necessity for IP monetization. Many factors determine the potential ROI of your invention. However, without understanding the monetary potential of a patent, you can’t make an informed decision about how your company will monetize its latest asset. Before choosing an IP monetization strategy, review your patents:
- Potential profit, and
- Litigation risk.
4. Choose Your IP Monetization Strategy
In-house patent commercialization is not the only viable strategy for your assets. Before monetization, review all of the potential ways to turn IP into new revenue streams and determine which is the best fit for this technology and your overall strategy. Potential IP monetization strategies include:
- Bringing new products to market,
- Licensing your technology,
- Selling your patent, and
- Enforcing your patent.
5. Approach Patent Monetization Holistically
Commercializing and otherwise monetizing individual patents is part of a holistic IP strategy. Considering your organization’s patent portfolio and other important intellectual property as a whole can present new opportunities for monetization. It can also illuminate ways to streamline your patent portfolio and allocate R&D and IP resources to technologies with the greatest potential within the current and future competitive landscape. This approach allows you to align IP monetization efforts with overall business goals, both long and short term.