Recently Qualcomm announced it was taking a hit on its revenue forecast. The reason is a royalty dispute with Apple who is withholding royalty payments on its contract. At issue is the royalty rate formula that determines how much Apple owes Qualcomm for the rights to use its chips in […]
There are many ways to use intellectual property to get a big return on your investment. Producing and selling products is one option. Licensing rights to generate revenues from non-competitive products is a second option. But these aren’t the only options. Here are four ways to use licensing as part of your business strategy to get the biggest ROI on your IP investment.
In licensing, it’s not where the market is today but where it’s going. Licensing is about spotting where an industry and companies are going, and capitalizing on it with your IP. That’s why licensing is such an ideal strategy.
Many startups I speak with often tell me their IP has other market applications, but they just aren’t ready to go after them now. They are concentrating on one market, building sales and then, at some future point (which they don’t know), they’ll move into another market. The problem is innovation moves very fast. Customers and markets don’t wait for innovation.
Licensing is a low risk and low-cost way to plant your flag internationally. It’s less expensive than launching joint ventures or wholly owned subsidiaries. Licensing is an especially good strategy if you’re a startup or small business with limited financial resources. Licensing offers a number of strategies for entering international markets. Which one you use depends on your IP and business goals.