There are plenty of opportunities in today's market and they are constantly evolving - whether it's in niche markets, new ways of distribution, or a shifting retail environment. Licensing is the tool that connects the IP with the expertise and knowledge to take advantage of these markets and money-making opportunities.

Licensing creates teams of professionals and it does that in three ways. First there are the idea people who create the intellectual property. These include the businesses and individuals who invent the IP. The second are the professionals, such as agents and consultants, who spot the licensing opportunities. I fall into this category. I assist my clients in making money with intellectual property, either as an agent licensing out rights to an IP, or as a consultant advising on acquiring rights to an IP. The third are the manufacturers who commercialize the intellectual property.   Depending on the IP, these could be one or more manufacturers or marketing companies.  

Bringing together these teams - better known as "commercialization teams", is a goal of licensing. The licensing process "captures" a wide variety of expertise and knowledge, and focuses it on making money with the intellectual property. 

For ongoing businesses, finding more customers and increasing sales is a continuous challenge. In both cases you can use Licensing, which can be done in less time and for less money than starting from scratch. Here are 7 reasons why:

1. Profit Potential - Licensing can generate substantial profits from the initial license fee and on-going royalties or service fees.
2. Licensing Partners - Licensing creates motivated partners who have invested their money and time into successfully commercializing the IP.
3. Market Expansion - Licensing can develop new markets using the financial and managerial resources of the licensees.
4. Business Expansion - Licensing eliminates almost all of the costs normally associated with launching new products or opening new distribution channels.
5. Lower On-Going Expenses - The expenses involved in managing multiple licensees are much lower than marketing the products directly.
6. Marketing Advantages - Licensors can reduce marketing costs and benefit from the combined marketing activities of all the licensees.
7. Economies of Scale - The more licensees a licensor has, the greater the number of customers and the larger the amount of revenues that can be generated from the IP. 

1946 - Did you know that the Fifth of July was national bikini day? It is the anniversary of Louis Reard's invention of the bikini.

1933 - The Monopoly board game was copyright registered. Charles Darrow, became the first millionaire game designer after he sold his patent to Parker Brothers.

1875 - Mark Twain's novel "The Adventure of Tom Sawyer" was copyright registered.

Ask Rand Brenner 

Got a question about licensing? Send an email to askrandbrenner@ licensing4profits.com.  You'll get an answer to your question which will be included in a future issue of this newsletter.