Intellectual property value changes over time. In the beginning, it has little value. It starts as an idea scribbled on the back of a napkin. As time goes on, it gains in value as it moves into the marketplace. Different types of intellectual property change value for a variety of reasons. A patent offers a valuable solution to a market problem, but as new technologies offering better solutions enter the market, its value is reduced. Successfully launching a patented product into the market increases its value. Brands gain value as they become better known. Development also plays a big part in both the value of your IP and the licensing deal. The closer your IP is to market ready, the higher its value and the royalty rate to license it.
Price is an expression of value. It’s derived from what the IP owner believes is the economic benefit from using the intellectual property, the lack of any competitive alternatives, and the negotiating skills of the licensee and licensor. The value of your IP is what it’s economic worth (i.e. future […]