Issues in Commercialization of Intellectual Property


Commercialization might be comprehended as a procedure of processing something in order to create benefits or the act of dealing with an item or good in a way to achieve monetary profits.[1] Mutual agreements are a significant factor in the commercialization process since they permit the IP rights holder to move the IP for business purposes and financial returns. The Licensing agreements are archives to allow the Licensee to utilize the IP for a given timeframe.[2]

This review will help discuss with respect to issues in how the maker or Owner of virtual property or development can change over or transpose their protected innovation rights into an industrially commercial item by utilizing the Legal instruments, for example, authorizing or assignments and through going into business contracts.

In this time of the global internet explosion, any individual may find various drafts and test contracts; nevertheless, it is imperative to understand that these examples are to be followed as a base of your intellectual property agreements and are not to be duplicated verbatim. It is consistently intriguing to dissect all the key focuses and explicit enthusiasm of a proprietor to evade any contentions or misunderstandings in the future. The key element to understand is the commercialization process as a whole.

The Commercialization Process

Commercialization involves taking steps toward putting up new items or administrations for sale to the public.[3] The more extensive demonstration of commercialization involves creation, appropriation, promoting, deals, client care, and other key capacities basic to progressing the business of a new item or administration.

Commercialization requires a cautiously evolved three-layered item turn out and advertising methodology, that incorporates the underlined significant segments:[4]

  • The ideation Stage
  • The business procedure stage
  • The partner Stage

Numerous individuals see the ideation stage as the mouth of a channel. Albeit numerous thoughts enter the pipe top, just a portion eventually make their ways descending towards execution. The Ideation stage endeavors to create new items and administrations that satisfy unanswered customer needs and attempt to line up utilitarian designs with the organization’s plan of action, by offering high advantages from incredibly low inputs.

The ideation stage endeavors to fuse market philosophy known as “The Four Ps,” which are, product, price, place, and promotion.[5]Frequently alluded to as the market-blend, organizations utilize this idea to decide the items to make, the value focuses on which to sell them, the client base it wishes to target, and the advertising efforts it will take to actually sell the product.

For a possible item to be qualified for commercialization, innovative work (R&D) endeavors must procure a level of goodwill to bring out expanded profitability for the organization. Also, for commercialization to really succeed, an organization must fulfill both its consumers as well as its investors’ needs. Moreover, Licenses, trademark enlistments, and other lawful estimates must be advanced to ensure an item’s savvy rights or rather just to protect it before the item might be brought to advertise.[6] Product promotion may happen in-house, or it might be subcontracted to outside entities, but security cannot be compromised. When a product chain is finished, marketing endeavors at that point carry attention to the objective market, which is achieved through dissemination channels and via associations with retailers.

In spite of the fact that organizations that produce, showcase, and disperse items in-house will in general harvest higher benefits since they don’t need to impart continues to middle people, they likewise expect more substantial risks with respect to production creation costs.[7]This particular feature allows a systematic approach to commercialize or market any product; however, there are certain specific requirements in the Intellectual Property process.

The Intellectual Property challenges and Procedure

The premiere element of building up an IP procedure is to concentrate on IP organization. IP organization covers the formation of IP resources. It takes advancement from exploration and item improvement and transforms it into Intellectual property through applications, indictment, and upkeep.

The subsequent stage is of Intellectual Property assemblage. This includes taking an arrangement of IP resources and making monetary advantages through a portfolio of the system, a mix of IP into the business procedure, and amplifying the estimation of the product.

A major thought of any IP procedure is to consistently adjust any provisionary gain against potential long-haul losses with reference to the organization’s goals.[8]

A typical system for commercialization and adaptation is to consent to a restrictive permitting arrangement to the organization’s basic patents so as to procure a secure and continuous monetary stream.

Simultaneously, organizations need to understand that a licensee who doesn’t understand the importance of marketing and misuses and/or abuses the authorized IP could become a risk. This could hence keep the organization from pushing ahead with other progressively profitable associations.

A different arrangement may be a contractual agreement that explicitly represents the above-mentioned needs and organizational policies.[9]

Utilizing the fundamental portfolio arrangements as discussed above, an organization should ideally concentrate on the advancement and examination of the Intellectual property principles that are vital to the business.

Next, they ought to comprehend what different innovations and technological updates supplement their contribution, and hope to frame systematic associations so as to make higher worth arrangements. This feature will tackle the most prevalent problem in the IP commercialization process that is fast-developing technological changes. Additionally, organizations ought to guarantee that their assets are coordinated towards the centre IP that bolsters the business objective to counter the negative effects of a growing business or those which stem from decentralization.[10]

The IP technique must be tailored to help achieve those objectives by amplifying the lawful securities accessible and limiting danger, risk, and liabilities. In conclusion, the commercialization of any sort of Intellectual property involves multiple layers; however, certain specific standards as mentioned in this piece will help navigate through the murky waters of the consumerization process.


[1] United Nations Economic Commission for Europe, Intellectual Property Commercialization- Policy Options and commercial instruments, available at (Last visited on June 6, 2020).

[2]World Intellectual Property Organization, Licensing of Intellectual Property Rights, available at,payment%20(fee%20or%20royalty). (Last visited on June 6,2020).

[3]Valment, 5 steps to successful commercialization of an invention, available at (Last visited on June 6,2020).


[5]Forbes, Evolution of the Four P’s: Revisiting the Marketing Mix, January 3, 2018, available at (Last visited on June 6, 2020).

[6]Marsh, The Importance of Intellectual Property Valuation and Protection, available at (Last visited on June 6, 2020).

[7]Forbes, three simple ways to lower your manufacturing costs, September 26, 2017, available at (Last visited on June 6, 2020).

[8]Forbes, how to achieve Business Holy Grail: Long Term Profitable Growth, March 20, 2017, available at (Last visited on June 6,2020).

[9]Supra Note. 7.

[10]Supra Note. 8.

This article is authored by Sri Hari Mangalam, First-Year, B.A. LL.B student at The West Bengal National University of Juridical Sciences

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