I have a sole trading client who licences his personal development content to 150 freelance associates in the UK and abroad, each paying between £1000 and £3000 annually. That’s a licence income of over £200,000 pa on an ongoing basis. A licence has widened his market to a global audience accelerated by post-pandemic online learning. Anyone who owns IP in products and services can do the same. Here are my three steps to success.
Step one: you need to own the IP. If you are the author of unique advisory content or product designs you have automatic unregistered ownership rights which can be formally registered in your name. UK IP registration application fees start at £60 for 10 designs and £170 for a trademark. It’s advisable to use a qualified IP advisor and their application fees can start at £140, so it’s affordable for startups or small enterprises.
Step two: Draft a licence contract to specify licencee conditions of use such as customer types, locations, payment terms, and marketing. IP advisor fees vary depending on their own costs with some independents charging £120 per hour to deliver a draft contract within one day.
Step three: Go to market with a small number of trusted resellers to establish your brand reputation. This creates high quality initial operational control, customer referrals, and enables faster future licencee growth.
Small enterprises can grow quickly with low overheads and low risk with licencing. For a free guide on protecting your Brand Reputation and a free IP review contact Clive Bonny, Strategic Management Partners at Clive@consult-smp.com. Clive has delivered government funded support to startups and SME’s since 1990 and works as a strategic Innovation Advisor for Universities, funding agencies and trade bodies.