When we think of properties, we usually come to think of real estate properties, houses, buildings, cars, jewelry, and the list goes on. Other than these tangible properties, there are also properties that we cannot touch and they are called intellectual properties. These properties, just like tangible properties, can also be bought and sold through legal means.
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Having knowledge about intellectual properties and what they are will help you determine what kind of transaction you are getting yourself into. It will also help you in how you should price an intellectual property or how much that property should be worth.
What are Intellectual Properties?
Properties are divided into different categories. One of these categories is an intellectual property or IP. Contrary to the usual properties that we know of, like houses and cars, intellectual properties are properties that are intangible. They are the creations or the result of the human intellect. It is hard to understand at first how it is possible to own something that cannot be touched. This is because we only know of the tangible things that represent intellectual properties and we only see them as some sort of symbol or perhaps just a group of words that promote a brand. You may also see license agreement samples.
Types of Intellectual Properties
There are four types of intellectual properties, namely copyrights, patents, trademark, and trade secrets. A lot of people consider them to be all the same when actually they are not. When selling and buying intellectual properties, it is important that you know the difference between each of these four types. It will also help you determine what type of intellectual property you are going to buy or sell and how much is its estimated cost.
1. Copyrights – When an intellectual property or creative work is copyrighted, it means that it has been put to writing and has been saved or stored in some physical way. Examples of creations that can be copyrighted are original photos, songs, stories, videos, and performances. If you ever need to use a copyrighted material, you may check out How to Obtain Permission to Use Copyrighted Material as a reference.
2. Patents – If songs and writings are covered by copyrights, inventions and methods of production are protected by patents. A patent is granted by the government where you have it registered, which gives you exclusive rights to your invention. The patent expires after a certain period of time. You might also be interested in taking a look at the patent license agreements.
3. Trademarks – It is often a name, word, logo, symbol, or letters used to represent a product brand to distinguish the product from other brands. Examples of trademarks are McDonald’s, the “Just Do it” tagline, the Starbucks Coffee logo, and many more. For more information, here is a guide for registering a trademark in the USA.
4. Trade Secrets – Trade secrets refer to the way in which a business does things that makes them successful. This could be anything from the ingredients of the product that made them famous to their trade partners and marketing styles.
Can You Buy and Sell Intellectual Property?
It is possible to buy or sell intellectual properties. Intellectual property trade has been a practice for some time now. An intellectual property could be owned by an individual or it could be owned by a company. The owner of the intellectual property can either exploit it themselves or they can have it sold. Most intellectual property owners prefer to sell their work instead of having it patented and exploiting it themselves. This way they can get paid for all the time and money spent on developing the particular products. It is important that you know a lot of facts about intellectual properties because they will serve as your guide and how you can buy or sell them. You may also see sample property purchase agreements.
Facts about Buying and Selling Intellectual Property
If you have an intellectual property that you are thinking of selling or if you are planning to buy one, then you need to know some important facts about it. It is always a good practice to research thoroughly on things that you want to buy and sell because this is going to be your basis on how you would determine if the benefits outweigh the risks.
1. Where or to Whom Can You Buy or Sell Intellectual Property from/to?
Before planning to buy or sell any intellectual property, it is best that you have a marketing plan or marketing strategy ready. Part of it should be where or to whom you buy or sell intellectual property. In other words, you need to determine where or who your possible clients are. This way it will be easy for you to market your product or find somewhere where you can buy it.
2. How Do You Price Intellectual Property?
The pricing for selling intellectual properties are often fixed, but there are certain clauses in the contract that allows for additional payment to be made by the buyer. There are also sale agreements that limit the use of the intellectual property in a specific geographic territory. This means that the buyer can only use it in a particular geographic location while the seller can use it in other parts of the world.
3. What are the Advantages and Disadvantageous of Selling or Buying Intellectual Property?
When you come to think of it, selling your intellectual property means you can guarantee that you get paid for it. You can finally profit from your creation where you had spent your time and money on. The downside is, you cannot just sell it at the price you desire because there is a cap as to how much maximum you can sell it for. You may also see property purchase agreements.
Now, if you buy an intellect property, you can exploit it and earn profit from it. You can also sell it to an entity that you know is interested in such creations. The disadvantage is that the owner of the intellectual property may impose limitations on how long you can exploit it or where you can use it. You may also see license agreement samples.
It is worth it to know about these things before selling or buying any intellectual properties, especially if you don’t want to get yourself into any trouble or be taken advantage of by any buyer or seller. You may also like property assessment templates.
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