Licensing Viability Analysis
Maximize your invention’s potential with a clear commercialization strategy
Summary
A Licensing Viability Analysis is a comprehensive evaluation of an invention's licensing potential.
It objectively assesses IP assets, market realities, and potential licensees.
The analysis develops a realistic financial outlook and determines the optimal licensing approach.
It mitigates risks, focuses resources, and enhances negotiation power.
Ultimately, it provides a roadmap for commercialization, increasing the likelihood of success.
Introduction
A very small percentage of inventions make it to the market. There is a lot of work involved in capturing value from your ideas. This is where a Licensing Viability Analysis becomes essential. Performing this analysis provides insights into how to approach a commercialization strategy with the most significant financial impact.
What is a Licensing Viability Analysis?
In simple terms, a Licensing Viability Analysis is a comprehensive evaluation of your invention's licensing potential. It's a structured process designed to provide a clear-eyed view of whether licensing is the right move and, if so, how to proceed effectively. This isn't about hype or wishful thinking; it's about a pragmatic assessment of the facts.
Why is it Done?
The primary purpose of a Licensing Viability Analysis is to prepare inventors and companies to launch a commercialization strategy that actually works. It helps to:
Objectively Evaluate IP Assets: This involves a detailed look at your intellectual property—patents, trademarks, etc.—to understand its strengths, weaknesses, and potential for licensing.
Assess Market Realities: A crucial part of the analysis is understanding the relevant market. This includes its size, competitive landscape, and growth potential. This market assessment helps determine if there's a real demand for your invention and how it might fit in.
Identify Viable Licensees: The analysis identifies potential companies that might be interested in licensing your technology. It goes beyond simply listing names; it delves into why these companies would be interested and what the potential challenges might be.
Develop a Realistic Financial Outlook: Licensing involves financial considerations. The analysis provides a realistic estimate of the potential financial value of licensing your invention, taking into account factors like market size, adoption rates, and royalty rates.
Determine the Optimal Licensing Approach: There are different ways to approach licensing. The analysis helps determine the most suitable strategy—whether it's an enforcement strategy (if you have strong IP and there's infringement) or an adoption strategy (focused on getting companies to incorporate your technology).
How it Improves Your Likelihood of Success
A Licensing Viability Analysis isn't just an academic exercise. It directly contributes to a higher likelihood of commercial success by:
Mitigating Risks: By thoroughly assessing the market and potential challenges, the analysis helps you avoid costly mistakes and wasted efforts.
Focusing Resources: It provides a clear direction, focusing your efforts on outcomes that are most likely based on your technology, IP and expectations.
Enhancing Negotiation Power: A well-prepared analysis strengthens your position when negotiating with potential licensees. You'll have the data and insights to back up your discussions.
Creating a Roadmap: Ultimately, the analysis provides a roadmap for your commercialization efforts, outlining the steps you need to take to maximize your invention's potential.
Conclusion
A Licensing Viability Analysis is a critical tool for anyone serious about licensing an invention. It's about grounding your ambitions in reality and setting the stage for a successful commercial journey.
This is the introductory post in our series about performing a Licensing Viability Analysis. Over the next several posts we will dive deeper into each stage of analysis to support your own commercialization research.