Intellectual property trading
The practice of trading intellectual property (IP) has grown both in terms of the number of companies and individuals trading IP, as well as in terms of the types of IP being traded. The potential benefits of such trading, both to those trading in IP, and the wider economy, are varied and must be more widely understood and appreciated.
In order to trade in intellectual property, companies, or individuals, must have a clear idea of the type and value of the intellectual property they have, or plan to acquire. This can range from patent rights covering products or processes, or, in the case of an individual, copyright of photographs or artwork, for example. For companies, trade marks, design rights, in addition to patent rights, are also of value.
Once a company or individual has established the type and value of the IP to be traded, it is important to consider the method of trading. Traditionally, exchanges of cash for the IP have been commonplace, but in more recent times, IP has been traded in exchange for shares, royalties or even taken in lieu of debt. There are more and more opportunities to exchange IP for services or expertise. For example, a company seeking to develop a specific web-site may seek the invention of a multimedia streaming technology in exchange for a contract to develop the web-site.
In the case of the insolvent company, the sale of intellectual property can be an important source of funds. Insolvencies, particularly corporate insolvencies, often results in the sale of assets, including IP such as patents, literature and other rights. In many cases these assets are sold through the insolvency practitioner. This can be an efficient and cost-effective method of trading IP, as it often brings together a range of interested parties and so lessens the time and costs associated with generating intellectual property trade offers.
The opportunities for trading in intellectual property continue to expand. New technology and the internet have given companies and individuals more opportunity to explore the possibilities of trading IP with low cost and ease. A range of websites and organisations provide information on the IP market and give buyers and sellers the opportunity to explore the possibilities of trading in IP.
IP trading can bring significant benefits for those involved, as well as for the wider economy. By trading IP, companies can benefit from a range of cost savings as they acquire protection for their own IP, and so reduce the potential of litigation and infringements. Such trading also offers companies the chance to acquire technology and know-how without the need to employ personnel and so saves on costs. For individuals, it can provide a valuable source of additional income as well as offering the opportunity to develop their own IP, or access new technologies from other parties.
Finally, there are significant additional economic benefits to be enjoyed from the trading of IP. Trading intellectual property can bring about innovation and enhance the development of new products and processes. It can also increase competition in the market place, which can reduce the burdensome cost of dealing with the monopolies of large companies.
In conclusion, there are increasing opportunities to trade in intellectual property, both in the traditional exchange of cash and in other forms, such as equity and debt. Such trading can bring significant benefits to those involved, and to the wider economy, through increased innovation, competition and cost savings. Such benefits should be more widely understood and appreciated.
