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The Money Making Power of Licensing
May 2014 Issue
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Welcome to the May issue of the Licensing 4 Profits newsletter.
Licensing information products is big business. In this months Leveraging IP article, we discuss the different types of info IP and how to avoid a common mistake when licensing it. Companies don't license IP - they license money. Success in licensing your IP is based on how valuable it is to your licensing partner. In this months Strategy Session article, we review 3 ways to create a perception of value.
Creating value for your intellectual property means proving its marketability. In this months Video Licensing Lesson, you'll hear about 6 ways you can build value for your IP.
Check out our newest E-Course, Guerrilla Licensing: 7 No-Cost and Low-Cost Ways to Promote Your Licensing Opportunity. During this free email course, you'll learn about seven promotion strategies you can use to create money-making licensing deals.
Getting paid is an important part of a licensing agreement. In this months Key Terms and Conditions article, we review two types of payment structures, and what to watch out for when defining those payment terms.
Find out what a steak sauce, a flying machine, and the worlds most popular girls doll have in common in This Month in IP History.
We conclude with the question,"I live in Nigeria and I've created several new products that I want to license in the US. Can I do this while still living in my home country?"
Enjoy!
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Leveraging IP: Licensing Info Products
Licensing information is big business. It's a niche market business that's defined by the type of knowledge you are offering. "Performance processes" focus on improving something, such as sales or productivity. "Using information" focuses on how something is used to produce or improve something else, such as software to create video games. "Sensation knowledge" is information about experiences of the senses, such as the taste of restaurant foods, or the excitement of amusement park rides. Other types of info IP are intangible services, such as consulting or seminars.
You can license info IP in many different ways. These include different formats (e.g. e-books, CDs, or DVD), sales channels (e.g. direct to customer or on-line retailers) and territories or markets (i.e. domestic or international). Before licensing your info IP, make sure you've evaluated all the different ways you can license out the rights. One big mistake is overlooking the different formats or applications that can be licensed. Some of these include licensing it as part of a compilation or continuity series, translated into different languages, or offered as a premium to sell other products. I have a client who converted parts of their consulting services into training courses, and is licensing them directly to his clients for their own internal training programs. Licensing is a shortcut to commercializing info product IP. It's faster than trying to build your own sales channels, and you can leverage more revenue sources than selling a single product.
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Strategy Session: Creating a Perception of Value
When licensing your intellectual property, the main objective is to create a perception that your IP is valuable to the licensee and it's in their best interest to license it. Here are 3 secrets to creating the perception of value: - A prototype that clearly illustrates the functionality, creativity and utility of your IP is your most important tool. We live in a tangible world, and the impact of being able to hold and try a new product vs. describing it or showing a drawing, is substantial. Videos, animation, and 3D printing are some low cost ways to create a "tangible" sample of your IP. One of my clients created a short video to "show" how their sound technology worked.
- The second and often overlooked secret is providing relevant market data. The key here is "relevant". Your presentation has to include the critical market data they need to make a decision. But don't just spit out a bunch of facts. The information must by weaved together to create perceptions of the IP value. I often start my presentations with the problem/solution information. The bigger the problem the more "valuable" the solution. It's supported by market statistics, customer testimonials, competitive products, focus groups, and other information to reinforce the IP value.
- You're creating a partnership and the perception of you is the third secret. Based on first-hand experience, I can tell you the perception of the IP owner and how easy (or difficult) I think they would be to work with is a real factor. People do business with people they like. Focus on success, supporting their efforts and working together.
Remember, companies don't license IP, they license money. The more valuable a licensee perceives your IP, the more likely they will want to license it.
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Feel free to pass this newsletter along to friends and associates. You can visit our website to view other free reports and presentations. If you're interested in learning about our consulting services, please contact us at (646) 395-9572 or email info@licensingcg.com.
Best regards,
Rand Brenner
President & CEO
Licensing Consulting Group
About Rand Brenner
Rand has licensed some of the biggest Hollywood blockbusters, including "Batman" and the "Mighty Morphin Power Rangers", both of which generated billions of dollars in worldwide merchandise sales. His career included executive positions at Saban Entertainment and Warner Bros Consumer Products where he developed numerous licensing and promotional deals with Fortune 1000 companies.
Rand Brenner is the President & CEO of Licensing Consulting Group, a full service intellectual property management company. LCG provides IP management, strategy consulting, and property representation. For more information, please visit our website or send an email to info@licensingcg.com.
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Video Licensing Lesson
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Join Our Mailing List!
Sign up for our newsletter and get the free Special Report: Finding Your Hidden IP Assets
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Free E-Course: Guerrilla Licensing - 7 No-Cost & Low-Cost Ways to Promote Your IP
Learn about seven no-cost and low-cost strategies to promote your IP licensing opportunity and turn it into money making deals.
Here's a list of what you'll find out during this licensing e-course:
- How to use the "Sweetheart Deal" to get your first IP licensing partner
- How to create Your IP Opportunity "Buzz" using free PR
- How a big licensing partner could magnify your IP attraction factor
- How to build your licensing platform using social media
- Two ways to create an IP demo video that excites potential IP Partners
- How to let your customers sell your IP licensing opportunity
- How to make a big impression for a small budget at Trade shows
http://licensing4profits.com/guerrilla-licensing/
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Key Terms & Conditions - Payments
Getting paid is one of the most important clauses in a licensing agreement. While there are several options, lump sums and performance based payments are typically the most common form. Both types can be included in a licensing agreement. Lump Sums These are a specific amount paid when a particular event or time series happens. For example, a one time payment when the first products ship, or the licensing agreement is signed. It could also be a series of fixed payments based on specific dates, milestones or annually for each year of the agreement. Performance Based These are a percentage or fixed amount paid on sales. When using performance based payments, make sure the licensing agreement is very clear on what is considered a "sale". Ambiguous sales definitions are frequently the cause of disputes regarding the amount payable by the licensee. When preparing or reviewing a licensing agreement, it's always best to seek qualified legal advice before you sign anything.
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Free Special Report- Licensing Copyrights: Converting Creativity to Cash Flow
Licensing is one of the easiest and fastest ways for converting your copyright IP into a cash flow generating asset. Through licensing, your are giving someone a limited number of rights to use your copyright for a certain period of time. Here's what's inside this special report: - Copyrights - A Multi-Billion Dollar Business
- What is a Copyright?
- What Can be Copyrighted?
- Why Register a Copyright?
- 3 Steps to Registering Internationally
- How to License a Copyright
- New Copyright Licensing Models
- Licensing - The Indispensable Skill-Set
- Monetizing IP Assets
Click here to get this free report. http://wp.me/P2LywD-175
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This Month in IP History
- 1892 Lea & Perrins Worchestershire Sauce became a registered trademark.
- 1906 Orville and Wilbur Wright received a patent for a "Flying Machine" with a motor.
- 1958 Mattel's Barbie doll was registered.
Source:About.com
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Featured Product: How To Turn Your Show-How and Know-How into Money Making IP
If you are a Consultant, Coach, Speaker, Author, or Trainer, you can transform your know-how into a "licensable" intellectual property, generate more money and reach thousands of customers you'd never achieve single handed. And that's how businesses go BIG!
http://licensing4profits.com/store/
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Ask Rand Brenner
Q: I live in Nigeria and I've created several new products that I want to license in the US. Can I do this while still living in my home country?
A: Today you can license your IP from anywhere in the world. All you need is email, phone and the Internet.
Your first step is to get your IP protected in the US. You can do that on-line by visiting the Patent and Trademark office.
After you've secured your rights, you can create a website with information about your IP, such as product demonstration videos.
Your third step is to research potential licensing partners. A good starting resource is US trade associations, such as toys, electronics or software. You can then visit the company websites to find out who to contact and go from there.
Most of the international licensing deals I've negotiated were done using the Internet, email and phone. You can do the same thing.
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.
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The information in this newsletter is presented by Licensing Consulting Group as a service to the subscribers. Although the author attempts to keep this information current and accurate, he makes no warranty or guarantee that it is correct, complete or up-to-date. This newsletter may contain links or be linked to other web sites not maintained by Licensing Consulting Group. The author makes no representations, express or implied, with respect to the materials and information provided on any third-party web site linked to this newsletter, including any representations as to the accuracy, timeliness, reliability or completeness of any material or information on such linked site. Inclusion of a link in this newsletter to another web site does not imply recommendation, approval or endorsement by the author of the linked site.
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