As the founder of an IP licensing business, I’ve experienced first hand the highs and lows of what it takes to grow and succeed in this industry. While every founder and category will have their own unique journey, I believe there are some common pitfalls and lessons that aspiring entrepreneurs who are looking to start or grow their own IP licensing business can learn from. Here are my top tips:

Have a great idea that you can monetise

It is essential to have unique and valuable intellectual property (IP) that you can leverage to generate revenue. Without this, your business will not be sustainable. Critically, this means you can’t have already published the ideas before patenting them and you must also be relatively confident that they haven't already been invented elsewhere. 

You can’t rush into founding a strong IP licensing business because the likelihood that you have come up with something truly revolutionary overnight is pretty slim. I spent over 10 years working at the top of my field before I had established a really clear understanding of why my new ideas were unique - and critically - monetizable.

Establish your mission, vision and values

Your Mission, Vision and Values are the foundation of your business. They define who you are, what you stand for, and why you exist. Make sure they are honest and that they will resonate with your team and your customers. Your values should be a mirror you can hold up to yourself, and they should give every incoming employee a clear understanding of how the business is run, and what the culture they are entering into is.

If you demand excellence in all aspects of the business - state that. If you prioritise customer needs over everything else - then be honest and state that. Attracting people into the business who think your values are one thing, but then experience another, doesn’t work for them or for you.

Surround yourself with excellent and hard-working people

Your team is the backbone of your business, so it is essential to hire individuals who share your vision and are committed to working hard to achieve it. Find people who are passionate about your vision, have skills and experience that helps you complete your mission, and personally resonate with your values. It is also critical to plan for how to deal with people that are not meeting those expectations. It is as important to avoid poor performers as it is to find the exceptional ones. Probation periods are useful for this, as is (where possible) bringing in executive-level candidates as consultants before bringing them in as employees. It is not always easy to do this, but be acutely aware that the more senior the bad hire, the more damage it does to the business.

Pick the right strategic opportunities

Not all licensing opportunities are created equally. You need to be strategic in choosing the opportunities that are most likely to succeed. 

Look for markets and industries that are growing, and where your IP can add value. The commercial terms can, in the long run, be much more important than the price, especially in terms of limitations you have managed to negotiate into the deal. Commercial licences are more like a game of Texas Holdem poker than a game of chess - the deal isn’t the final reveal, the deal is just the river on the table that both parties can see.  Both parties can still be holding the cards long after signature that the other hasn’t seen.

Build partnerships and identify your champions

Building partnerships and identifying external champions can be a game-changer for your business. For us, time spent building relationships with potential licensees, investors, and other key players in the industry was time well spent. 

Seek out strategic partners who can help you reach new markets and identify external champions who can advocate for your business and help you to build your brand. Nothing moves your engagement faster than a highly motivated and vocal champion inside your target customer business, demanding access to the technology from their procurement department.  Everything will move much more quickly. 

Our partnership with General Motors was born from this. They understand our technological capability and invest strategically. They saw us as a fantastic strategic partner for their vision of the future of driving.

Growing a successful IP licensing business can take hard work, dedication, and a commitment to excellence. Whilst it’s not an easy journey, it can certainly be highly rewarding and have a significant global impact.