Commercial Exploitation of IP

The Future of IP Transactional Work

As our world becomes more and more technologically advanced and new information and knowledge lead to new cutting-edge innovations and inventions, the clash over intellectual property (IP) rights is continually becoming a high stakes battle throughout the world. In the United States alone, more than 500,000 patent applications are filed every year. Meanwhile, the monetary numbers are staggering, with the accumulative value of intellectual property reportedly somewhere in the neighborhood of $5.8 trillion.

IP Intermediaries Run the Show

With so much money at stake in the IP industry, it’s no wonder that so many companies have their hand in this booming business. Interestingly though, there are many different business models to choose from to make money in this industry and it’s not actually the IP creators and IP consumers that are making most of the profit. Rather it’s the so-called “IP intermediaries” that broker these deals between the purchasers and the licensees that are pushing the IP industry to such high monetary levels.

Different Business Models to Choose From

Although these IP intermediaries use different business models, many of them employ more than one method successfully. There are many models to choose from, including:

  • Patent licensing enforcement companies
  • Defensive patent pools, funds and alliances
  • Institutional IP Aggregators
  • Litigation Finance/Investment Firms
  • IP Brokers
  • Licensing Agents

This list is not all-inclusive but these are some of the most common IP monetization business models that IP transaction companies utilize

Foreign Riches to Be Had

Although there are many successful IP monetization models to choose from, as well as many IP intermediaries that make a lot of money in deals involving IP rights, there are still billions of dollars in the IP industry that are going into the public domain and being left unclaimed. So how does that happen? Many inventors in the United States choose to file for IP rights solely in the U.S. while choosing not to file in foreign countries that have growing economies. That means they are potentially losing billions of dollars. For example, there are several large countries, including China, Saudi Arabia, Korea, Russia, Taiwan, India and Brazil that have relatively large economies but where many inventors choose not to file for IP rights.

A Promising New Business Model to Watch

So how can all of this money be recouped? At IP TRADER, we have developed a new IP transaction business model called a Foreign IP Rights Aggregator. Under this model we connect investors with inventors who would pay for acquisition of patent rights in these countries. IP TRADER would connect inventors with investors who would pay for the patent rights in exchange for royalty payment. This model provides a win for both parties because those inventors who do not have any initial interest in commercializing those rights would instead have just let them fall into the public domain. Under this model all parties would be rewarded.

Rolling With the Changes Will Lead to Success

Like most industries, the IP transactional industry will continue to change and fluctuate with time. Therefore, the bottom line when it comes to IP transactional work and monetization is that those firms that are the most opportunistic and which can offer the most services under one roof, are generally more likely to come out on top of this booming market. Therefore, as an innovator in this new Foreign IP Rights Aggregator business model IP TRADER stands to be a significant player in the IP transaction industry.