Investing in Intellectual Property Assets for Wealth Creation
Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Consequently Intellectual Property Rights, (IPR), are rights granted to creators and owners of works that are the result of human intellectual creativity. The main intellectual property rights are: copyright, patents, trade marks, design rights, protection from passing off, and the protection of confidential information.
IP is divided into two categories: Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs.
I have written at least two books and am working on my third book. These books constitute potential exploitable intellectual property asset. What that means is that the books as they are original works of creativity are copyrighted and so use of the material can be protected by law. Out of those assets I am able to generate wealth through people who will buy the books. These assets produce passive income. A lot of people have useful knowledge but are too lazy to put it down in wiring so as to generate passive income. I am actively pursuing options of making these books available to wider market through the use of the Web and so increase the potential revenue.
Many people especially of African origin have written songs or created products which could have been protected so that they derive revenue out of them but due to ignorance they did not do anything to protect their ideas. My Pastor Bonnie Deuschle has produced many songs and some of these are copyrighted. Other artists have recorded her songs and paid her royalties. How many African Christians have composed songs and never put them in the sphere of recordings so that the copyright is protected?
Another well known way of exploiting intellectual property for wealth creation is through the establishment of franchises. Nandos for example found a unique way of preparing chicken using Portuguese culinary skills and created a franchise. Out of that franchise the Company is making lots of wealth as people buy that franchise for business purposes. Those who buy the franchise e.g. the Macdonald or KFC franchise they pay royalties to the franchise owner. However they also benefit in their business through the branding and marketing activities of the franchise owner. So even if you have not created a franchise you can benefit from someone else’ Intellectual property at a fee. Who said that all businesses should start from zero with novel ideas? You can make serious wealth by acquiring a franchise.
Since I have wetted your appetite in the following postings we will discuss briefly each of the different types of intellectual property rights and how they can be used to create and preserve wealth.