Recently the University of Arizona licensed one of its latest technologies, a formulation for a new sunscreen, to a local company. The value of this new technology is the ingredients are combined in such a way that it keeps it from seeping into the skin. And that presented a great licensing opportunity for a small company who spotted the IP.
DSL created a multi-billion dollar industry. It was launched into the market by a startup who licensed the technology from a top US university. The IP changed the internet and catapulted this startup into a a world leader. For startups, developing an IP from the ground up is an expensive and risky endeavor. But there is a better way to launch a startup.
For many startups, going all the way from IP development to market launch is often capital intensive. Many times funding is hard to get because of the high costs and risks involved. That’s where the licensing route is one of best strategies to use.
Some of the most valuable IP is built upon existing IP. It creates new industries, businesses, markets and big licensing opportunities. Incremental IP improves or extends the life of a product or technology, such as product quality, reliability, or ease of use. Even a small improvement can have big commercial value, especially in highly competitive markets.
Medical device technology is one of the biggest industries in health care, and growing demand for state-of-the-art consumer medical devices is driving this explosive growth. It’s an industry that is becoming a high-volume consumer electronics market in which technical innovation, cost control and IP are critical to commercial success. It’s also a very competitive industry and succeeding requires staying informed on the best practices for product development, marketing, sales, financing, IP management and licensing.