Organisations can do many things with IP including the following:
An IP licence grants a third-party licensee the right to use your intellectual property in exchange for a fee or ongoing royalty payments. It is also a means of getting additional capital into your company, particularly if you are not currently using the IP or are only using it in a particular sector and/or geographical territory.
IP commercialisation is the process of getting your IP to market and/or creating new revenue streams, whether on your own, through a partnership or via a combination of the two. By reviewing your existing IP asset portfolio, you can identify IP assets that may be capable of being monetised, whether through licensing or sale.
This can be achieved by demonstrating the company has critical IP assets without which it could not operate and then separating them from the risks associated with the trading business. These IP assets are typically moved into an IP holding company (‘IPCo’) under a sale and lease-back arrangement, whereby the use of the assets is licensed back to the trading business. This results in the value of these IP assets being reflected on the balance sheet of the IPCo and as a debtor on the balance sheet of the trading business (until the IPCo pays for the assets it purchased).
We have helped companies boost the sale price or valuation of their business prior to exit, although our work is often triggered after an initial approach has been made to buy a business. By cataloguing the IP assets the Company has, and improving the buyers perception of value via the recognition and importance of the IP assets which underpin the competitive advantage of the business, buyers’ perception of value is increased from its initial balance-sheet only calculation.
Many companies don’t understand the full extent of intellectual property assets which may exist within their business and, as a result, are unlikely to be properly managing or protecting this critical IP. Metis Partners specialises in conducting IP Audits in order to identify the range of critical IP which exist within your company using our proprietary assessment tool, the Metisology™. Once we have identified all relevant IP assets, we rate the quality of these assets and the level of IP protection that exists around them before making the link between the IP and the products or services they might protect.
Once a company realises the full extent of IP which exists within the business, it should consider how it uses it to its maximum potential. Metis Partners can help your company create and implement an IP management strategy, and can also act as a Virtual Chief Intellectual Property Officer for a short period to ensure that such a strategy is properly introduced and managed before handing over to the existing management team to continue.