Setting Your IP Strategy - Part II: Monetisation Of IP

Businesses may be deterred from taking steps to acquire IP rights because of the associated costs; however, when acquired strategically, IP rights can provide a substantial revenue stream. Following on from the first article in this series, the following considers how patents,

Monetising trade secrets

Licensing can provide a revenue stream for trade secrets. However, when considering whether to license a trade secret it is crucial to bear in mind:

1. how easy it will be to keep an idea secret,
2. how commercially valuable the idea is to the business, and
3. the likely evolution of that value over time.

These considerations help divide trade secrets into two groups: those which concern features of a product or process which may best generate revenue by providing a competitive edge in the market and those which may provide more financial benefit through licensing. The first group includes trade secrets which can reliably be kept secret, are financially