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The Money Making Power of Licensing
October 2014 Issue
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Welcome to the October issue of Licensing4Profits. Your business is sitting on a source of capital that you're not using. If fact, you probably don't realize you own it. Your intellectual property is a capital resource you can leverage to get financing for your business. In this month's featured article, Is Your Business Overlooking a Capital Source, we discuss why IP is quickly becoming a key asset for attracting investors and lenders. Are you looking for ways to make money with your information product? Then sign up for our newest e-course: How to Make Big Money Licensing Information Products. This step-by-step e-course will teach you how to transform your information product into money-making licensing deals. Confidential information is part of every licensing deal. In our next article, Key Terms & Conditions, you'll learn what the Confidentiality clause is and why its important to include it in your licensing agreement. Find out what a toothpaste tube, popular hard candy, and a video game controller have in common in This Month in IP History.We conclude with this month's question "How do I know a licensing agreement is fair and not unduly slanted to the other party's benefit?"Enjoy! 
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Is Your Business Overlooking a Source of Capital?
Your business is sitting on a source of capital that you're not using. If fact, you probably don't realize you own it.
Even if you are "commercializing" your IP by selling your products or services, you may be overlooking new ways of using it. Your intellectual property is a capital resource. It opens doors to getting funding for your company. IP is being used as collateral for loans, equity financing, and even funding pension funds. Effectively leveraging your IP assets makes your company more attractive to investors or sets the stage for an exit strategy.
The financial markets now recognize the importance of IP assets to a business. Intellectual property and, more broadly, intangible assets now account for the majority of business values. Businesses are investing more in new intangible assets, such as databases, brands, processes, technologies, know-how and trade secrets, than new physical assets. Companies today are earning more from their IP assets than from tangible inventory and equipment.
Investors and lenders are increasingly focusing on businesses making the most of their IP assets. Different investors/lenders value your IP assets in different ways with different degrees of importance to your IP rights. The trend however, is towards an increasing reliance on IP assets as a source of competitive advantage.
A good example is the first ever IP Dealmakers Forum. The event connects investors with intellectual property information and opportunities. It's goal is to overcome one of the biggest challenges in the world of IP - an inefficient market for connecting IP owners and buyers. This event brings IP information providers (i.e. attorneys, licensing agents, IP executives, etc.) together with investors who understand how to leverage IP, manage risks and connect with the right players.
The real value of your business IP is the way it's used as an integral part of your business strategies. It impacts every area of your business - sales, marketing, capital raising, business development, and R&D. In an economy that increasingly values intangible assets, investors are focusing on businesses that manage and leverage the full value of their IP assets.
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Feel free to pass this newsletter along to friends and associates. You can visit our websites ( www.licensing4profits.com and www.licensingcg.com) to view our blog, special reports, published articles, webinars and audio presentations.
If you are 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
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.
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
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Key Terms & Conditions- Confidentiality
Confidential information is frequently an important part of a licensing deal. For example, technical information involving a patent includes trade secrets or know-how. This information is usually provided under a separate confidentiality agreement as part of the due diligence and negotiation process. Including a confidentiality clause in your licensing agreement is important. It typically provides details on licensee procedures for safeguarding the information, liability in the case of unauthorized disclosure to third parties, and how long confidentiality continues after termination of the license. This clause replaces the separate confidentiality agreement and covers any additional information that's provided after the licensing agreement is signed.
When preparing or reviewing a licensing agreement, it's always best to seek qualified legal advice before you sign anything.
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This Month in IP History
1841 A patent for a collapsible tube for use with such items as toothpaste was granted to John Rand. 1961 "HOT ROCKS" Candy was trademark registered. 1992 Nintendo of America copyright registered the configuration of its hand-held game machine. Source:About.com |
Ask Rand Brenner
Q: How do I know a licensing agreement is fair and not unduly slanted to the other party's benefit? A: The best licensing agreements make it a win-win situation for both the licensee and the IP owner. The goal of negotiating the agreement is to formalize terms for the licensing partnership. There is no "standard licensing deal." The licensing agreement reflects a unique set of circumstances for the licensing partners. "Standard terms" are always modified based on the goals and expectations of the licensor and licensee. While there are many ways to negotiate a licensing deal, you'll want to focus on the key parts that make it a fair agreement. These include exclusivity, product development, royalty revenues, IP control and audit rights. Before signing anything, It's best to review the agreement with an experienced licensing attorney to make sure it's a win-win deal for both you and your licensing partner. 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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