Commercialization of Intellectual Property
In the practical implementation of innovation activities by small and medium-sized enterprises, the most complex and relevant challenges are those related to the development of market relations for the commercial use of intellectual property (intellectual property commercialization). The ability to achieve positive final results in innovation activities largely depends on how successfully these challenges are addressed.
Commercialization of rights to the results of intellectual activity and equivalent means of individualization (hereinafter referred to as “results of intellectual activity”) is the process of incorporating such rights into civil circulation and using intellectual property in the business operations of small and medium-sized enterprises.
Innovative production requires the formulation of a sound strategy and the selection of appropriate tactics concerning intellectual property, aimed at ensuring that exclusive rights to the results of intellectual activity become a source of income.
Sources of income from intellectual property may include:
- exclusive use of new technologies, i.e., using the results of intellectual activity in internal production processes;
- full transfer of rights (patent sale);
- sale of rights under a licensing arrangement;
- transfer of rights to trade secrets (know-how).
From an economic perspective, the most profitable approach is to organize the exclusive use of rights to the created results of intellectual activity. In such cases, the patent holder is able to exercise the monopoly granted by the exclusive rights.
A small or medium-sized enterprise, acting as a rightsholder, may dispose of its exclusive rights to the results of intellectual activity in any way that does not contradict the law or the nature of those rights.
The right to dispose of exclusive rights may be exercised in the following forms:
- assignment of the exclusive right to another person under an agreement (agreement on the assignment of exclusive rights);
- granting another person the right to use the result of intellectual activity within the limits established by contract (license agreement);
- granting the right to use the results of intellectual activity under a commercial concession agreement (franchising).
It should be noted that the disposal of exclusive rights is not permitted with respect to trade names (Paragraph 2 of Article 1474 of the Civil Code of the Russian Federation) and appellations of origin (Paragraph 4 of Article 1519 of the Civil Code of the Russian Federation).
NEVA-PATENT provides the following services related to the commercialization of your intellectual property:
- Drafting and legal review of agreements on the assignment of exclusive rights;
- Drafting and legal review of license agreements;
- Drafting and legal review of commercial concession (franchise) agreements.