There are many ways to extract maximum value from intellectual property, including outright sale, co-branding, and licensing. One of the strategies we employ for our clients, when appropriate, is to seek out a joint venture based on the client’s intellectual property. The form typically follows this format: Two parties come together, with one donating intellectual property into the joint venture while the other partner donates capital, manufacturing facilities, and other production assets.
The benefit of this is that the technology or other IP reaches commercialization more quickly while the IP owner also retains an equity interest in its assets. Such a joint venture can take place between two unrelated parties, as well as between related parties, such as licensor and licensee. Oftentimes, an existing licensor/licensee relationship shifts into a more equal partnership, where a joint venture is formed in order for the two parties to more equitably share both the risks and the rewards.
Over the years, we have worked on intellectual property-based joint ventures for clients in a variety of industries, including the fashion and apparel industry, the food industry, and the automotive after-market industry, among others.