Intellectual property commercialisation for start-ups: Strategies for creatives

By Omoruyi Edoigiawerie Esq

Today kick-starts the 2024 World Intellectual Property Week which will culminate on the 26th of April – the World Intellectual Property Day.

In keeping with the topical essence of this weekly column, I have decided to write on commercialisation for start-ups. I chose this because Intellectual property is a critical incentive for innovation and creativity and start-ups play a pivotal role in the journey towards technological advancement and innovation.

In today’s age, the hallmark of the fourth industrial revolution lies in innovation and technology, and creative start-ups are increasingly fuelled by innovation and ingenuity. From design studios to content creators, they thrive on their ability to generate unique ideas and products that capture the imagination of consumers. Amidst the excitement of creation, many overlook a crucial aspect of business growth and that is intellectual property (IP) commercialization.

As we all may know, Intellectual property encompasses a wide range of intangible assets, including trademarks, copyrights, patents, and trade secrets, these assets are the lifeblood of their business, distinguishing them from competitors and providing a competitive edge in the market.

Whether it’s their unique brand identity, original content, inventive products, or proprietary processes, IP provides start-ups with a competitive edge in the market. By securing exclusive rights to their creations, creative start-ups can protect their innovations from imitation and exploitation by competitors.

Intellectual property commercialization involves transforming creative ideas and innovations into tangible assets that generate revenue and drive business growth. While the concept may seem daunting, especially for start-ups navigating the complexities of entrepreneurship, several key strategies can help streamline the process and maximize the value of intellectual property.

*We will review these strategies in detail below

1. Licensing agreements

Licensing agreements allow startups to grant third parties the right to use their IP in exchange for royalties or licensing fees. This can include licensing trademarks for merchandise, copyrights for content, or patents for technology. By partnering with established brands or industry players, startups can leverage their IP assets to access new markets and generate additional income. Through licensing agreements, they have a powerful mechanism for monetizing their intellectual property assets and by licensing their trademarks, copyrights, or patents to third parties, creative startups can generate revenue streams while retaining ownership rights, products, or services.

2. Strategic partnerships

Collaborating with strategic partners can help startups accelerate the commercialization of their IP and amplify their impact. Whether it’s partnering with manufacturers to bring products to market faster or teaming up with content distributors to reach a broader audience, strategic partnerships can provide creative startups with resources, expertise, and distribution channels to scale their businesses more effectively.

Product development: Creative start-ups can use their Intellectual Property as the foundation for developing new products or services that address unmet needs in the market. By innovating around their existing IP assets, start-ups can create value-added offerings that resonate with customers and differentiate them from competitors. This can involve expanding product lines, entering new market segments, or adapting existing IP for new applications.

4. Franchising

Franchising offers start-ups a scalable and low-risk way to commercialize their IP by granting franchisees the right to operate under their brand and business model. This allows them to expand their footprint rapidly without bearing the full burden of capital investment and operational expenses. Franchising also enables start-ups to leverage the local knowledge and resources of franchisees to drive growth in new markets.

5. Outright sale of intellectual property rights

In some cases, start-ups may choose to monetize their IP assets by selling or licensing them out rightly to other companies or investors. This can be particularly lucrative for start-ups with valuable patents, trademarks, or copyrights that are in high demand. By divesting non-core IP assets, start-ups can unlock liquidity to fund further growth initiatives or focus their resources on core business activities.

6. Creating value-added products and services

Intellectual property commercialisation is not limited to traditional licensing agreements or partnerships. Start-ups can get creative and explore innovative ways to leverage their intellectual property assets to create value-added products and services. Whether it’s developing branded merchandise, offering exclusive content, or providing specialized services, they can find unique ways to monetise these creative assets and engage with a targeted audience.

*Enforcing intellectual property rights

Protecting an intellectual property portfolio is a crucial element for any creative start-up and for maintaining a competitive advantage in the market. They need to be vigilant in monitoring and being on the lookout for potential infringement of their trademarks, copyrights, or patents, and take prompt legal action to enforce their rights if necessary. This not only safeguards creative assets but also sends a clear message to competitors that these start-ups are committed to protecting their intellectual property.

*Intellectual Property Day 2024: Intellectual property as a catalyst for sustainable development

So, this year the theme for this year’s Intellectual Property Day is IP and the SDGs: Building Our Common Future with Innovation and Creativity. I find this year’s theme very apt because the Sustainable Development Goals provide a framework for addressing pressing global challenges, such as poverty, hunger, health, education, gender equality, clean energy, and climate action. Intellectual property is, therefore, a veritable tool to contribute to the achievement of these goals by facilitating the development and dissemination of innovative solutions that address the root causes of these challenges.

I believe very strongly that intellectual property is a potent tool for advancing sustainable development and achieving the SDGs. By fostering innovation, promoting creativity, and protecting the rights of creators and innovators, IP enables us to build a brighter, more prosperous future for all.

As we work towards the common goals of ending poverty, hunger, disease, inequality, and environmental degradation, let us look to the power of IP to drive positive change and build a world that is more just, equitable, and sustainable for future generations.

*Omoruyi Edoigiawerie is the Founder and Lead Partner at Edoigiawerie & Company LP, a full-service law firm offering bespoke legal services with a focus on start-ups, established businesses, and upscale private clients in Nigeria. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. His firm can be reached by email at hello@uyilaw.com