Monetizing IP During Financial Crisis: Recent developments in the world of debt finance, the economy and the resultant recession of 2008 are all challenging companies financially. However, these developments highlight new ways for companies with actual or potential intellectual property to generate income, and in some cases to recapitalize themselves.
Not every company is in a position to practice classical carrot and stick style licensing. But that does not mean that licensing is not an option for every business, regardless of the intangible assets they own.
In modern discussions regarding the value of intellectual property, terminology can often become confusing. To prevent misunderstanding, it’s important to differentiate between “intangible assets,” “intellectual capital” and “intellectual property.”
Many manufacturers overlook the opportunity to patent aspects of their food products or specialised manufacturing processes. This is especially true in the natural products industries, where unusual ingredients are often mixed together and specialised production processes are increasingly required to make successful products. In most natural product categories, it takes substantial innovation for manufacturers to be able to produce successful functional and natural food products.
Intellectual property, and in particular a patent, is critical to protecting product formulations. Patents are the ‘holy grail’ of such formulations, and if a company owns a strong patent it has a limited monopoly in the marketplace that allows it to prevent competitors from copying or otherwise trading on its recipe or formulation for the term of that patent.
The brand has become a strategic business concern for every senior corporate executive and board member. With increased global competition, it has become essential for leaders in every industry sector, from commodities to consumers packaged goods, to understand the theory and practice of the successful deployment of brands.