Intellectual property can be a goldmine, but only if you know how to utilize it properly. There are plenty of creators who have been denied the full benefits of their work because they failed to monetize that intellectual property in a viable and profitable way. We would like to see you avoid those mistakes, so let’s talk about seven clever ways in which you can effectively monetize your IP.
Selling Your IP Outright
If you are comfortable with the idea, you might want to consider selling your IP to someone else. Obviously, your rights to these creations should not be sold cheaply or without serious consideration. In a lot of cases, you can make a lot more money by retaining those rights. However, if you simply want to make a big payday and move on to something else, this option might be for you.
Consider Making Some NFTs
NFTs, (AKA “Non-Fungible Tokens”), are another great way that you can turn a promising IP into money. These are basically digital collectibles that are part of an encrypted blockchain. This prevents them from being copied, meaning that each one is a unique and collectible item. The idea of digital collectibles is kind of new, but it’s already become a very profitable industry. Thus, you may want to create your own NFT.
Licensing Your IP
This is a far more common method than the first option (i.e., selling the IP outright). Instead of selling all the rights to a particular IP, you can allow people to “rent” those rights for specific purposes and/or products. This kind of deal is called a licensing agreement and it’s the main way in which most people profit from an IP. For instance, let’s say you own the rights to a movie franchise. Licensing deals will be necessary if you want people to create merchandise related to that franchise or anything that utilizes its copyrighted material.
Enforce Your IP
If your IP is truly popular, there is a good chance that someone is using it without permission. If they are making money from something that you own, you have every right to sue them in order to enforce your intellectual property rights. Not only does this discourage future transgressions of copyright, but it can also put a sizable chunk of money in your pocket.
Of course, we should mention one thing here– you should only go after businesses that are making money from your IP. Going after private individuals for using clips on Youtube or something like that is likely to hurt your image. People like having access to a wide variety of information, so it’s best to leave that alone. Otherwise, you could get a bad reputation and people will then avoid your IP on principle.
Do Your Own Selling
When you make licensing agreements, copyright agreements, or anything like that, it is very important that you retain personal rights to utilize your IP in whatever way you choose. This means that you can still produce and sell content that is related to your IP, keeping control in your corner. Even if all your licensing agreements fall through, you still have those personal rights to fall back on.
Securitization of IP
There are times in which IP rights have sold for thousands or even millions of dollars. This gives you an idea of how valuable they can be. As such, it is possible to use those rights as collateral to obtain loans and other financial services. For smaller or newer businesses that rely heavily on their IP, this is a great way to obtain funding. Of course, you are taking a risk when you do this kind of thing, so be very careful and make sure you understand every agreement before signing.
Start a Company
If your IP is valuable enough, you might even consider building a whole company around its popularity and value. In such a case, it shouldn’t be too hard to find investors looking for an easy return. Investing in something that is already well-known and popular is generally seen as a smart investment.
Conclusion
If you hold the rights to a valuable IP, you need to understand the value that it has. Some people are able to make a very good living from the methods described above, and there is no reason that you cannot do the same. There is a lot of complex research that you will need to do, but we hope that we have given you a good start.
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