The MedTech industry is one of the fastest-growing, most lucrative markets around. It's also one of the most rapidly changing industries, with technological advances and increased patent filings. This makes it difficult for smaller players to keep up with the big ones. But there's a way to level the playing field and capitalize on these new opportunities: licensing. Below is a summary of this presentation covering why licensing is the best strategy for success in MedTech, the most important factors when considering licensing agreements, and the right time to license your medical device or technology.
Why Licensing is the Best Strategy
When you take advantage of licensing opportunities, you can open up more income streams and unlock new possibilities. By partnering with big players in your industry, you can gain access to their networks and resources, which will help you expand your market reach much faster than if you were doing it alone. With larger companies providing capital investments and marketing support, you can increase sales quickly while maintaining control over your product or service.
The #1 Factor for Success
Licensing success depends on finding partners who have complementary strengths that make them beneficial to each other. It's important to consider how both parties would benefit from a partnership before signing any agreement. Consider things like potential cost savings and increased efficiency through economies of scale and increased customer base or access to new markets that may not be available without this partnership.
The Most Important Deal Terms
When entering a licensing agreement, some key terms must be considered carefully before signing anything. These include royalty rates (how much money will be paid out), exclusivity rights (who has exclusive rights over specific markets), term length (how long will the deal last), termination rights (under what circumstances can either party end the agreement) and dispute resolution (how will disputes be handled). Ensure all these points are discussed thoroughly so that both parties know exactly what they agree to before signing anything.
The Right Time To License
The right time for entering a licensing agreement varies depending on your specific situation and goals. Still, generally speaking, it should be done when there is an opportunity for growth or expansion into new markets that wouldn't otherwise be available without this partnership. Additionally, understanding the current market conditions helps ensure that any agreements entered into reflect fair compensation for both parties by taking advantage of potential cost savings or increased efficiency through economies of scale that come from the licensing partnership. By following these guidelines and considering all factors listed above, you can use licensing as an effective strategy for capitalizing on new market opportunities in MedTech!
When new markets or technologies emerge, companies with existing intellectual property (IP) can capitalize on these opportunities by licensing their IP. If your company has licensable IP, there are a few things you can do to prepare for licensing opportunities, including identifying and cataloging your IP assets and developing an understanding of the market opportunities for your IP. If you're not sure where to start, we can help. We offer a free consultation call to discuss your options and answer any questions you have about licensing and monetizing your IP. Schedule a call today to learn more about using licensing to capitalize on new market opportunities.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He's licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid's action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. His first book, Hidden Wealth: The Money Making Power of Licensing was released in 2019 and is available on Amazon.com. He's also a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.