What to consider when licensing intellectual property ❓
Licensing is a good strategy that can help to expand your business and boost your profit.
📝 Some facts:
1️⃣ Licensing is used by companies of all sizes (Walt Disney Company, Warner Bros. Discovery, SNEDAI Group etc).
2️⃣ According to the report « The Top Global Licensors for 2023 », a total of more than $278 billion in retail sales was generated by the IP rights holders featured in the report.
Some Benefits of Licensing :
✅ Licensing offers the licensor the opportunity to enter a market without incurring the cost of a marketing campaign and to benefit from the licensee’s network;
✅ The licensee can take advantage of the reputation of the licensor’s existing products without having to invest in R&D to diversify its activities.
To bring a licensing project to a successful conclusion, it is vital to also assess the challenges that may be faced depending if you are a licensor or a licensee.
🏋🏻 Some of the challenges for the licensor:
– licencee can fail to pay royalties ;
– there is a possibility of business failure due to an inappropriate strategy;
– licensee can lose control of the licensed product etc.
🏋🏻 For the licensee here are some questions to consider :
– how to take the maximum benefit from the collaboration within the limited period of the licence?
– What are the rights and obligations for the type of the licence acquired (exclusive, non-exclusive, sole) ?
– What is the strategy if the licensed technology becomes obsolete? etc.
📢 It is important to ask the right questions before embarking on a licensing project. Licensing offers many advantages but there are also some potential challenges that must be evaluated and properly managed by businesses for a successful journey.
Never hesitate to get in touch with professional if you are confused 😕
We are available in case or any question, consultancy related to intellectual property , feel free to get in touch at contact@cabinet-tf.com or to call on +237 693 00 40 98.
