How to Get The Most “Bang” From Your IP "Buck"
Determining the value of intellectual property can be difficult to assess. Unlike a car, where a seller has websites, magazines and dealerships to determine what buyers are willing to pay for a certain make, model and year, valuation of intellectual property is not so black and white. Whether you are intending to sell your intellectual property or license it, you should take a moment and consider what your intellectual property consists of and how it can be divided in order to optimize its value. Here is a hypothetical example:
Oktane Energy Corp. is a health food, energy drink and nutritional powder producer. They have a registered trademark for their logo design that incorporates the word “Oktane” and have also registered their energy drink container as a distinguishing guise. The energy drink containers have become very popular with running clubs as the design allows for easy holding and has a drip proof lid. Oktane Energy Corp. holds many trade secrets with respect to the formulas used to create their snacks, drinks and powders and have also started an athletic clothing line under the name Oktane Energy.
Now Oktane Energy Corp. could license or sell all of its intellectual property to one entity for an agreed upon price, or it could choose to get as much value for its intellectual property that it can by selling or licensing its intellectual property piecemeal, to a variety of entities which are willing to pay top dollar for that specific intellectual property which will enhance their business. This could include Oktane Energy Corp.:
1. licensing or selling its distinguishing guise energy drink container to a beverage producer, so that entity can benefit from the popularity and goodwill associated with the container;
2. licensing or selling the trade secrets to another food/drink producer for them to incorporate into their product recipes;
3. licensing or selling the trade name “Oktane Energy” along with the know-how associated with the clothing production to an active wear producer; and
4. licensing or selling their registered trademark to another entity that wants to produce comparable health food and/or energy drink and/or nutritional powders.
Creating a successful business and a brand is a difficult task - an intellectual property lawyer can assist you in understanding the full value of your intellectual property and ensure that you are getting the most value for your hard work.