IP Commercialisation – Case Study Related To Software /IT Industry

Prologue:

IP commercialization entails that one has the necessary intellectual property rights on the IP being commercializated and the commercialization would essentially have two parts – IP valuation and the consideration (fees).

In this article we look at the commercialization aspects of the intellectual property rights in software; through the case study approach.

Valuaton and Licensing (not Assignment):

2. Commercialization

In order to commercialize, decision has to be taken whether the IP would be assigned or licensed out. Assignment, in lay man's terms is equivalent o selling off; while in licensing the ownership would be retained and the licensee would pay license fees. In this write-up we are considering, the case where the ownership of the software is retained by the organization that develops it and a revenue model would be established which can bring in one time or distributed (continuous or staggered) revenue.