In large part the investor community has lost its appetite for building companies around IP. The time and costs required for a new venture to develop products and gain momentum within industry market channels makes it virtually impossible to mitigate the risk of failure in our incredibly competitive global economy. These business realities make IP placement through licensing agreements a very attractive alternative.
Yet in order to take advantage of licensing IP to established industry players, there still are financial hurdles to overcome before IP becomes marketable at its maximum value. Often these become insurmountable for IP owners. As a result, promising IP becomes “stranded” because, on its own, its value is not assured to investors for a variety of reasons any one of which require considerable expense to mitigate. Here are just a few:
- LEGAL AND PATENT EXPENSES
- COMPETITIVE/MARKET DUE DILIGENCE
- ENGINEERING AND DEVELOPMENT EXPENSES
- MARKETING AND SALES EXPENSES
- ONGOING OPERATIONAL EXPENSES