Monday, December 15, 2014

IP Monetization Yearbook from IAMmagazine.

Intellectual Asset Management magazine ( publishes a set of reports each year.  One is the "IP Monetization Yearbook."  The 2014 issue has 11 articles- one of which is Monetization of Royalties and Revenue Streams.  As the techniques for monetization of the enterprise's asset leader, IP, mature, the ways in which to monetize it should evolve to keep pace.  Here, the subject is the multiple ways in which to monetize royalties and other revenue sources from the IP portfolio.

As with most things, there are risks as well as benefits.  This makes due diligence and risk assessment mandatory.  A sample of the risk factors:
-  Revenue stream sensitivity to changes in consumer preferences
-  Technological, product or market obsolescence
-  Infringement risks
-  Risk of invalid IP

These factors potentially impact royalty interest purchases, IP securitization, multiple licenses, etc.

The article summarizes the basic structure of the licensing techniques, the pros and cons, the advantages and disadvantages.  What the article does not explore are the internal demands on the enterprise to develop the business strategies and revenue potentials against other internal revenue sources. (Product Management)  These licensing techniques  have much in common with a financial line of business requiring sophisticated financial plans.  This is not your IP Father's Patent Licensing Agreement from decades ago.

Already, IP Law and corporate finance are seated at the table.  Business Development and Strategic Planning need to join along with IP business managers.  And, once the royalty agreements are implemented, someone will have to manage the royalty collection and certification processes.

What organization in the enterprise owns these license agreements?

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