Transfer your rights or look for licensees
There are several ways to value your patent or trademark once the intellectual property right has been filed. Among them, the search for licensees, the transfer or the industrial backing.
Thanks to its long-standing partnership with Brandon Valorisation, Consulting in innovation and IP valuation, Brandon IP is able to supports IP owners in their efforts to value patents and trademarks or other intellectual property rights.
Whether you are a start-up, an SME, a project leader or a research organization, when you own one or more IP rights (patent, design, trademark, software, etc.) the question of their valuation may arise.
Why estimate the value of an intellectual property right?
An intellectual property right gives its owner a monopoly for a certain period of time. This can last up to 20 years for a patent, subject to maintenance, or an indefinite period for a trademark, also subject to maintenance. This is a real competitive advantage in a constantly evolving market.
However, even if it is a barrier against competition, the patent and IP in general represent a cost center for the owner company or organization. And if it is not used but “sleeping”, then the investment is unfortunately not profitable but remains expensive. To avoid this situation, it is important to include intellectual property into the company’s strategy and think about the best possible way of valuing the invention.
Thus, if the company is not in a position to use its invention or its trademark on its own – this may be because it does not have the necessary financial, commercial, human or industrial means, or because it wishes to enter new international markets – other paths of development can be considered to take advantage thereof.
Grant an operating license
An effective way to recover the investment made in the development of this intellectual property is to grant an operating license. The point here is to give the right to a third party to use their patent, their brand or their software, in return for remuneration.
The main objectives of a licensing strategy are:
- Make your investment in R&D profitable,
- Enter new markets, especially worldwide where there may be a language, cultural or financial barrier,
- Diversify its activity,
- Estimate the value of the business.
Industrial backing by opening up capital: the way of partnership
When a start-up is looking for ways to bring its innovation to market, or when an SME encounters structural issues related to its development, industrial and financial backing with a larger company in the same field of activity – or close – can be a strategic and long-lasting solution.
Setting up a partnership of this type with another company makes it possible to:
- Strengthen its industrial, commercial, financial and human resources,
- Facilitate access to the market thanks to an already established company,
- Finance its need for research and development,
- Obtain new means to increase your business and make it sustainable,
- Expend worldwide,
- Diversify its activity by adding complementary products to its catalogue.
Thanks to its twin expertise in intellectual property and valuation of innovation, the Brandon Group is able to help you in the search for industrial partners or licensees, in France, Europe or worldwide, by defining together the strategy best suited to the case. We provide an original service based on our own methods.
All our services are carried out on an international scale.
Our teams accompany you from the definition of the best strategy for your company to the negotiations and the drafting of the agreement, whether it is a partnership, license or assignment contract, or an industrial backing.
These missions may require a prior financial valuation study of intangible assets (patents, and associated know-how, trademarks, designs, etc.) or perhaps a valuation of the company. In the case of backing, this study will make it possible to assess the value of the company as accurately as possible before determining the value of the shares of the participating parties.
Here again, our firm has the skills to help you.
If you have any questions or wish to promote an intellectual property right, contact our teams: information@brandon-ip.com
See also:
- Estimate the value of an IP rights portfolio
- Challenges of value creation with your intellectual property
- Drafting, filing and defending a patent
- Drafting and negotiation of license agreements