Welcome to the December issue of Licensing4Profits. 

Trade Associations are more than just membership, event and education organizations. In this month's featured article, we discuss how trade associations can use their database and content " IP" to generate revenues, increase membership and build their brand value.

 

One of the biggest obstacles to making money with intellectual property is the way you think about it. In our newest e-course, The Licensing Mindset: How to Think Like an IP Entrepreneur, you'll learn about thinking outside the "tangible asset" box and why the most successful businesses are created with a licensing model.

Maintaining your IP rights requires timely payments of registration and maintenance fees. In our next article, Key Terms & Conditions, you'll learn several ways these fees can be negotiated in your licensing agreements.

Learn what a toilet brush manufacturer and a department store copywriter have in common in this month's Holiday IP History article.

We conclude with this month's question "Can I get an option to license an intellectual property?"

Happy Holidays!

 

Trade Associations Are More Than Just Membership, Meetings and Monthly Information

 

Many associations are missing big income opportunities by failing to recognize their database and content as valuable intellectual property assets. 

Trade associations support their members in various ways, most often through information, industry resources and professional training. What many of them overlook is thinking about their content and database as intellectual property.   

 

A good example is the American Dental Association's licensing program. They re-purpose their existing products and content, and generate $2.5 million annually through licensing. Their licensing program includes the members database, dental procedure codes, print and digital books, an app, related continuing-education programs and licensed articles and other related content.

 

In addition to revenue, the ADA's licensing program increases their brand value by reaching new international markets and increasing public awareness about the ADA and the importance of oral health.

 

A successful licensing strategy focuses on how to use your association intellectual property to maximize royalty revenues. It starts with an inventory of your IP assets so you know what you are working with. The secret is dissecting your IP into parts. For example, when licensing their database, the ADA excludes rights to their members email addresses, which they use exclusively to sell their own products directly to members.

 

Royalty fees can be structured based on the IP use. In the case of a database, it can be a fixed rate royalty for a one time promotional use, or an annual royalty based on unlimited use rights. A third option is licensing to one or more list brokers for an annual royalty fee, revenue split or percentage of sales. These are often sub-licensing deals, where the list broker re-licenses the database to other users.

 

Control of how your database IP is used is also important. It's best to create "licensee guidelines" (e.g. Standards and Procedures manual) of permissible uses. An annual usage audit is another way of making sure your licensees are complying with their usage rights.

 

Your association database and content is valuable IP that is unique to your industry. By effectively managing this IP asset, it can be re-purposed and licensed to generate additional revenues, enhance membership value, increase the association brand, and attract new members.   

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,

 

President & CEO 

       

In This Issue

You'll hear how Mrs. Fields, Bill Gates, Dale Carnegie, Google, and others turned their intellectual property into business fortunes. You'll find out about new ways to transform your IP into licensing deals, and why every IP owner making money with their IP helps others to do the same.

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Keeping your intellectual property rights intact is an important part of a licensing agreement. In addition to infringement actions, it requires staying current on all fees for your IP registration.

Your agreement must clarify who will be responsible for maintaining the registered IP rights (i.e. patents, copyrights and trademarks). In most cases, the IP owner pays all the fees associated with the IP registration and maintenance.

 

However, in some cases, the licensee can be required to pay the fees. Some examples are when a licensee is assisting with the patent filing strategy, or is getting exclusive rights to the IP. In this situation, the licensee can get reimbursed by the IP owner, typically as a credit against future royalty payments.

 

When preparing or reviewing a licensing agreement, it's always best to seek qualified legal advice before you sign anything. 

Artificial Christmas Trees: In the 1930's, the Addis Brush Company created the first artificial-brush trees, using the same machinery that made their toilet brushes! They received a patent for it in 1950.

Rudolph the Red-Nosed Reindeer: Rudolph wasn't part of Santa's original sleigh-driving team. Rudolph was invented in 1939 (and later copyrighted) by a Montgomery Ward copywriter named Robert May. It was a Christmas story the  department store gave away to customers as a promotion. Rudolph also became a famous song, cartoon and TV show.

 

Source:About.com