Licensing IP to yourself....

[James Burke]

After a few unsuccessful attempts to approach a large company concerning IP I've developed, I'm kicking around the idea of licensing it back to myself via a separate holding company I would own.

In one sense, it's just shuffling money around. But in the end, I could see where it would help create some much-needed write offs, along with mitigating the problems of expiring patents and dealing with affiliate licensing issues.

With plans to eventually sell the main business, the IP would essentially remain with the holding company for retirement residuals. Or, it could be part of the buyout.

I just started researching the idea and have discovered that large business engage in the same practices. Why wouldn't it work for the little guy?

Any thoughts?


JB

 

[ewded]

Don't know too much about IPs but I can imagine suing somebody would take a lot of time/energy so if they don't make a good money on it you'd probably only be compensated for the cost attorney and stuff.

 

[WildWestDesigns]

I do have IP, not licensed out like you are thinking about though.

Most things that big companies use, can also be used by the "little guy", however, time and money (as was already mentioned) are 2 big factors as to the success of going thru such measures. Even if everything is on your side, it all comes down to how much resources you have available. And you are going to have to be active in that protection/collection, even if it is just for "retirement residuals".

Depending on the IP and what it is for, I would make it apart of the buyout. If it's internal tools, it could sweeten the pot quite a bit if they are that much of an efficiency/productivity booster.

I guess it all depends on how much of a headache that you are willing for this to be in case you have to really get involved in protecting your licensed out IP. This isn't "mailbox money" such as dividends etc.

 

[Reveal1]

If it's Intellectual Property lucrative enough to be potential retirement income, I would hire a law firm specializing in IP/patents. Not a DIY project. (I have a fair amount of experience working with IP firms in past business dealings; way too many ways to get ripped off if you don't cover your bases.)