Unlocking the Value of Immaterial Assets: Strategies for Commercialization and Success in a Complex Intellectual Property Landscape

Immaterial assets are present in every business, irrespective of their level of innovation. It is important to note that innovation alone does not guarantee economic success. For instance, consider the case of Apple licensing the intellectual property rights for the first computer mouse for a mere $40,000. The case mentioned above serves as a compelling illustration of the intricate nature of intellectual property (IP) valuation. It emphasizes that assessing the value of IP is a multifaceted task that goes beyond innovation alone.


However, the initial step in the commercialization process involves building a robust portfolio of IP assets. In this regard, registering IP rights, such as patents, is just one aspect of this broader strategy. Paraphrasing the words of Peter Drahos, a renowned intellectual property scholar, for Small and Medium-sized Enterprises (SMEs) and Micro-Enterprises (MEs), a patent can be likened to an entry ticket to the lower decks of the industrial system.  On these lower decks there are the other small players such as start-ups, the universities, research bodies and so on, all trying to attract the attention of venture capitalists and ultimately the captains of the system, the multinational corporations. The chances of a winning ticket are small.  


Instead, SMEs and MEs would benefit from viewing its intangible assets as a cohesive and functional knowledge system. This includes not only traditional IP instruments, but also other types of valuable information protected by trade secret frameworks, including confidential business information and know-how. Identifying and securing the components of this knowledge system is crucial for successful commercialization, scaling up, and securing funding. Investors, licensees and potential partners are unlikely to invest in or license a technology or innovation that can be easily copied or reproduced. IP rights provide a means to safeguard and enforce exclusivity, creating a competitive advantage and incentivizing investment.


Immaterial assets, technologies, knowledge systems can be effectively commercialized through the establishment of business partnerships and the utilization of contractual arrangements such as licensing and franchising. Licensing agreements enable the transfer of IP rights, allowing another party to use, manufacture, or sell a product or technology based on the licensed IP. Franchising, on the other hand, involves granting the rights to operate a business model, including the use of trademarks and other proprietary knowledge, in exchange for franchise fees and ongoing royalties. These contractual vehicles provide avenues for SMEs and MEs to monetize their immaterial assets, expand their market reach, and establish mutually beneficial partnerships for commercial success.


There is no one-size-fits-all solution when it comes to selecting tools and strategies for SMEs and MEs to leverage their immaterial assets. It is essential for these businesses to assess and evaluate their specific circumstances and needs. Factors such as the characteristics of their immaterial assets, existing technical solutions, strengths, and objectives of their business model, as well as the competitive landscape and market dynamics, should all be taken into consideration.