Let's take IBM as an example. IBM Corporation maintains one
of the world's most vigorous patent filing operations, and
actively licenses its 40,000-plus active patents to other
companies. Although other corporations around the world may
manufacture products based on IBM IP, IBM holds the original
patent, so they make money without incurring additional
expenditures or risks.
You don't have to be a huge company to take advantage of this
IP revenue stream. Even as an individual or entrepreneur, you
can still benefit from owning intellectual property. Your IP
may not be hard goods that you can sell directly to
consumers, but they are investments that can earn you money
for years to come.
The Traditional IP Revenue Methods
Traditionally, there are three main ways to make money from
IP:
1. Exploit it. Simple enough, this means you use your
IP to create a product, and then sell it
yourself.
2. License it. Let someone else pay you to use your
IP, such as a patent. They'll either pay you a one-time fee
or you could earn a royalty on every sale.
3. Sell it off. Sometimes, it makes more sense to sell
full ownership of your IP to a third party for a one-time
fee. This works especially well if the idea is risky, or if
it will take more capital than you can pull together in order
to fully exploit it.
Non-Traditional IP Revenue Methods
Beyond these three traditional avenues, individuals can
quickly and easily benefit from their IP by taking it in
several additional directions.
1. Look at it askew. Sometimes all it takes to create
new IP is to take your previous IP and make a slight tweak.
With patents, you can often make subtle (or not-so-subtle)
improvements to your original and file what is known as an
Improvement Patent, which builds upon a previous idea or
invention and turns it into something new. Bingo, your new
patent is ready for its own exploitation or
licensing.
2. Document and share your original research. Think
about how your IP was created in the first place. What made
it possible for you to successfully create it? What research
did you conduct? What processes and procedures did you have
in place? What makes your IP unique?
Once you've answered these questions, ask yourself one more:
Can others learn from your actions? If so, try writing
articles about your success or your techniques. Trade
magazines in your industry want to hear your ideas, and can
often pay well for you to tell your story.
3. Talk about it. You did the research, and you
created the IP, which means that you know the subject better
than anyone else. So start talking about it.
Conferences, local technical meetings, professional
societies, and other events are always looking for
interesting and effective speakers. Speaking engagements are
a great way to engage your audience, share your success,
brand your company, and earn speaking fees at the same time.
Speaking engagements are great opportunities to meet
potential customers, to expand your contacts, to give back to
your industry, or to reach the press with your unique story.
Speaking of which, reporters are always looking for
interesting people to profile, or for experts to contact when
they are writing about a specific subject. By establishing
yourself as an expert source [link to other
article], the next person they interview could be you.
Sure, you won't be paid actual money if you're interviewed or
if someone else writes about you, but good publicity for you
and your company are payment enough in the long run.
There -- now that you know these techniques, get out there
and take advantage of them.
Oh, and then make sure to turn around, create something else,
and start the process all over again!
John R. Platt is a freelance writer and marketing
consultant who often writes about technology,
entrepreneurship, and the environment.
