Many times what goes in a product is more important than the product itself. And that presents a great licensing opportunity. That’s just what one cannabis company decided to do. Rather than use their technology to make and sell products, they use their R&D technology to help other product manufacturers deliver better and more consistent products.
Your IP is more than just the foundation for your products or services. You most likely created it to solve a problem or meet customer demand. If it solves a problem for you and it works, then it can solve a problem for other companies in a different market or industry. That’s a golden licensing opportunity and it should be part of your business strategy.
Fast-growing industries offer a great licensing opportunity. One example is the cannabis industry which is quickly growing as states legalize recreational and medical use. To meet the skyrocketing demand, companies are scrambling to find new technologies for production and delivery of cannabis in all forms from medicinal purposes to edible products.
What happens if your company is growing so fast it can’t keep up with demand? For many companies, they wind up going out of business as they lose frustrated customers because they’re unable to deliver products. But for smart companies they turn to licensing as a strategy to quickly scale up their business.
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.