Who Gets the Rights?
September 17, 2008
I remember reading in “Confessions of an Advertising Man,” that David Ogilvy (founder of the legendary O&M) had signed over the royalty rights to his son and that his son, as a consequence, was doing quite well. In succession planning and its implementation, Intellectual Property (IP) rights often get short shrift. They are harder to value than hard assets and the introduction of a new technology can wipe out their value entirely. They are, however, assets worth valuing and selling (or bequeathing) at the right price.
Keep in mind when seeking to pass them on, though, that rights can produce royalties. Rights, which are restrictions on those who don’t have them, also tend to invite imitation if not downright infringement. IP rights are expensive to get and to maintain. They are also very costly to defend. A fellow panelist at an IP workshop said that a typical patent in the pharmaceutical field cost the company about $645,000 in filing, maintenance and defense costs over its lifetime. Everyone, including the rest of us on the panel, were stunned. So, if you own IP, it is probably worth something, but it also carries with it some challenges when sold, donated or bequeathed.
John Reddish’s expertise is helping entrepreneurs and top executives who want to master growth, transition and succession, get results faster, less painfully and in ways that work for them. John is a member of the National Speakers Assn. For more information: www.getresults.com. Or call 800.726.7985 in the US, 01.610.388.9335 internationally, or at johnr@getresults.com.
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