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Why is IP Attractive to Investors?

Fri Aug 27th, 2021 by  Copyrights

The world we live in is constantly evolving, and the commercial, technological landscape is growing by leaps and bounds. In fact, 84% of the value of S&P 500 companies in 2018 consisted of intangibles, such as intellectual property (IP) rights. As a result, it is difficult for investors to ignore the many advantages of investing in IP.

IP Value Has No Limit

IP Attractive to Investors

Perhaps one of the most attractive features of IP is that the value of IP is limitless. Unlike physical assets, such as real estate, the value of IP may increase indefinitely. Additionally, the maintenance and operational costs involved with maintaining IP are minimal compared with other tangible assets. The COVID-19 virus has brought this matter to the forefront of investing, as companies that are going bankrupt during the pandemic are able to sell their trademarked names for millions of dollars. Even as these companies suffer financial hardships, the IP remains as valuable as ever. 

IP Protection Offers A Competitive Advantage

Being successful as a company means standing out from the competition. By being proactive with its IP protection, a new company can show investors that it believes in its product and takes the necessary steps to ensure its product is safeguarded. In turn, this will engage the interest of investors looking for a start-up with protected products and potential. 

Reduction In Operational Risks

Generally speaking, the first to file has superior claims to the related IP rights. Once the IP is granted or registered, no other entity can use the IP unless the original person or entity to file sells or licenses the rights to them. By filing in all major markets and protecting a company’s key products, processes, and brands, a company can greatly reduce the risk of having copycats misappropriate their IP. Such assurances mitigate the risks associated with investing in the product and company. 

IP Is Great for Marketing 

What better way to market your product than boasting that it is a unique, nonobvious product or process that cannot be copied? This is attractive to both purchasers and potential investors. It is a way for a company to show they have faith in their product and want to protect it from being copied or exploited. The words “patented,” “patent pending,” a trademark symbol, and brand names all bring more authenticity to a product, making it more appealing to investors. In addition, if the company decides to later open itself up to acquisition, IP protections often increase a company’s value and will make it much more attractive to potential acquirers. 

An Intellectual Property Firm That Stands Head & Shoulders Above The Rest   

The team of legal professionals at AdamsIP provides sound guidance for those seeking IP protection. We get to know our clients and their businesses, and together we formulate a plan that creates and sustains the value of their business for a long time to come. You may reach us via our contact page or by calling 1-251-289-9787.