Page 48 - Start Up_V. 2

INDUSTRY

APPROACHES TO INTELLECTUAL

Property Commercialization

PREAMBLE DEFINITIONS
The centrality of knowledge as a source of productivity gain We can define commercialisation as the process of
and competitiveness, has recently placed the intellectual converting products and services into a commercially viable
property system at the centre stage of the knowledge value. In terms of Intellectual Property (IP), commercialisation
economy. In order to realise the value contained in can be specifically defined as the process of bringing IP to
intellectual property (IP), the organisation or entity seeking the market in view of future profits and business growth.
to commercialise IP must have established and secured Managing IP commercialisation is not certainly an easy task,
the rights over the innovation via the IP rights provided. as the success of this process depends on several internal
Such a process of commercialisation requires a vigorous and external factors such as business objectives, type of IP
approach to IP protection. It is also important to note, as well as economic and intellectual resources. Furthermore,
however, that securing IP protection does not guarantee that since IP can be commercialised either directly by its
commercialisation will be successful. Therefore, the entity owner, through an assignment or by building up business
considering commercialisation should devise a good strategy partnerships, the selection of the most appropriate approach
to match the type of IP rights; patents, trademarks, industrial is often challenging, especially for Small and Medium-sized
designs, geographical indications and trade secrets at hand. Enterprises (SMEs).

IP commercialisation

by it’s IP owner through assignments by business partnerships

COMMERCIALISATION ROUTES Exclusive

Source: European Union, 2016
egardless of the nature of the Joint Venture and spin-offs
industry, whether in manufacturing
or the service sector, businesses
create, develop and sell intangible Assignments are important tools for commercialisation, in
Rassets. However, how to carry out the event where the owner of the IP does not have enough
commercialisation activities, whether by the capabilities (financial, human resource, marketing, etc.) to
company itself or not, is a question of corporate market the developed intellectual asset and/or when the
culture and business strategy. owner would like to realise an immediate cash return from
an IP asset, which he does not intend to exploit with its own
CREATING A START-UP COMPANY- IP resources.
COMMERCIALIZATION BY OWNER
The approach involves starting a company LICENSING
using IP, and having IP become the main driver A licence is a contract under which the holder of an
of the entity. Companies, especially SMEs, may intellectual property (licensor) grants permission for the use of
want to take up commercialisation activities its intellectual property to a third party (licensee), according to
on their own for different reasons, and these the terms and conditions set by the provisions of the contract.
may include: A situation where the company or Hence, as a business strategy, a licence allows the licensor
other IP owner already has enough capabilities to make money from its intellectual asset by charging the
for marketing, so that there is no need for licensee some royalty in return for its use. Licensing has as
partnership; a company or IP owner does not an important role in companies’ commercialisation strategies,
have enough capacities for building up and/ since there are significant advantages of licensing IP, creating
or carrying out such a partnership, and in a win-win situation for both parties.
events where the IP owner hesitates to share
information with third parties, or does not want
to create possible competitors or spend money
and make an effort to building partnerships.
Assignments
As assignment of IP occurs when IP owners
do not intend to exploit the IP themselves.
By nature, an IP assignment is a transfer of
ownership of an IPR, such as a patent, trade
mark or design, from one party (the assignor) to
another party (the assignee). Consequently, the
assignee becomes the new owner of the IPR.

45 The Africa We Want