Startups are often built around a great idea and a passionate team. But how can startups take that idea from concept to market?
One way is through licensing. The licensing agreement creates a partnership between two parties, where one gives the other permission to produce, distribute, and sell its product or technology. It's an effective way to quickly get your technology into the marketplace without raising capital or investing too heavily in a manufacturing process.
This blog post will explore why licensing is a powerful tool for startups and look at a real-world example of success.
The Benefits of Licensing
Licensing can be incredibly effective for startups to bring their products or technologies to the marketplace with minimal investment. Here are just some of the advantages:
• Low cost: Entering into a licensing agreement requires significantly less up-front investment than starting your own business, manufacturing process, or marketing campaign would.
• Access to resources: When you enter into a licensing agreement, you have access to resources that you may not have been able to obtain on your own—such as manufacturing capabilities and expertise in distribution and sales channels.
• Brand recognition: Your licensee may already have established relationships with retailers and customers who trust their brand—which means it can be easier for consumers to recognize yours.
• Reach more markets: A licensee could help you reach new markets faster than if you were doing it alone—without making additional investments in R&D or marketing efforts.
Real-World Example of Successful Licensing
We recently saw an example of successful startup licensing when an Irish-based startup announced a licensing deal for its new composite bonding technology. The startup had developed its proprietary process and bonding agents, which solved the problem of weakness at points where bonds were applied – something no other company had been able to do before them! After validating the technology in the commercial marketplace, they lined up several customers interested in licensing it – including many big industries looking for lighter-weight solutions with increased strength at points where bonds are applied.
This example shows that even though startup businesses often don't have large budgets or resources available, there are still ways they can bring their technology and products successfully into the marketplace – through strategic partnerships like these! Licensing can be a powerful tool for startups looking to get new products and technologies into the market quickly and cost-effectively. They provide access to resources that might not be available and add brand recognition from established partners who trust their licensees' products. By leveraging these benefits, startups can take advantage of opportunities that otherwise wouldn't exist – creating more value for both parties involved!
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.