Using Unused IP to Create Revenue

One of the truly unique ideas to come out of Open Innovation is the process by which a company can dig up all their unused IP and turn it into a revenue stream for them. How this is done is the focus of many blogs, LinkedIn discussions, Twitter posts and a host of other social media outlets.

There are three keys to getting the unused IP program up and running. The first is to create an internal repository for all unused IP. While this sounds easy it is typically quite involved. It takes 4-6 months to get a pilot program up and running in most organizations, simply because the ideas that populate the repository can come from anywhere and from anyone in the company, not just from patents and trade secrets. It is how you tap into that collective conscience that determines the quantity and quality of the ideas.

The second aspect of unused IP systems is creating an interface for the ‘outside world’ to view these ideas. This is probably the most difficult step in the process as it involves making a company transparent to the outside world and, as a result probably to competitors. A true OI driven company can see past this and even embrace this transparency as it opens up every possible means to use that IP to create value. This step requires a basic cultural change in the organization and can take years to accomplish.

Once the repository has been established and it has been made transparent the final step is vetting the solicitors and establishing the details of the collaboration. Partnerships, licensing agreements, joint ventures are just some of the possibilities for external collaboration. It is up to the company to decide how to put these agreements together, and will dictate how fast the program moves.

I invite all to comment on this part of the OI Program. It is the newest part of OI and represents the ‘gray area’ of innovation. Many have commented on the barriers to launch this initiative, but few have really good input on how to do it. My suggestion above is but one way to achieve that goal.