Licensing software is one of the most common strategies for monetizing this type of IP. Using the licensing model, the software developer (IP owner) generates revenue without giving up ownership rights.


You can use licensing to tap into other partner resources, such as getting access to marketing and distribution channels, product support, market recognition, or to enhance the software with new technologies or products. Software licensing strategies include direct sales (e.g. end user licensing agreement)and strategic partnering (e.g. OEM distribution). In this article, we’ll discuss three partnering licensing strategies – co-branding, manufacturing and sales, and non-competing markets.

A co-brand license is a strategy you can use to raise awareness and generate sales. Licensing rights to co-package with a well know software brand can create instant credibility by leveraging off the brands name and market presence. Your software and brand would be displayed within the bundled software. You could create special offers for the licensors customers and gain traction into the marketplace. As a side note, It doesn’t necessarily have to be a co-branding deal with another software brand. Google’s latest version of its Android operating system will be named KitKat (yes, the candy bar). In return, Nestle gets the rights to sell chocolate bars featuring the Android mascot.

A second way of using licensing is to access bigger markets. By licensing out rights to market and distribute your software IP, you can enter global markets that you would otherwise not be able to reach. For example, by licensing its disk operating system software (“MS-DOS”) to IBM, Microsoft obtained the benefit of IBM’s global sales, marketing, and distribution systems.

A third way of licensing your software is in a non-competing field. This is a good strategy if you are not planning to exploit certain markets. For example, a developer of mainframe computer software with expertise only in mainframes could license a developer of software for personal computers.

Software is one of the most licensable types of IP’s. Choosing the right licensing strategy is key to successfully commercializing your software. Licensing for strategic partners can be one of the best ways of getting your software into the market faster and for less money than selling it yourself.

Are You Maximizing the Value of Your IP Assets? 

Your business has an inventory of your raw materials, finished products and stock on hand? What about your intangible assets? While most companies routinely do financial audits, few companies routinely do IP audits of their intellectual property. Without an IP Audit, your company is at risk of losing IP rights, overlooking valuable assets, missing revenue opportunities or facing potential litigation actions. Click here to take a quick 8 question quiz to find out if your company needs an IP Audit.


Mr. Brenner has over 30 years IP management and licensing experience with various industries including consumer products, food, entertainment, software,health technology, medical devices and digital media. He has led international licensing programs as both licensee and licensor, and through consulting projects focused on strategy and management, outbound / inbound licensing initiatives, and IP audits and due diligence.. He has developed and managed deals with Fortune 1000 companies including Universal Studios, Fox Interactive, Sony Pictures, Dow, Cargill, SmithKline Glaxo, Ranir, Coca Cola, Kellogg’s, Hasbro, Mattel, and others. He is a public speaker and published writer, and has taught classes at the university level. His speaking events have included UC Irvine, Tritech/SBDC, Irvine Chamber, Fast Start Studios, ICFO Investors Conference, San Diego Investment Conference, Westlaw Legal Center (NYC), National Speakers Association, and the Hong Kong FilmArt Expo. He has written several articles on licensing intellectual property which have appeared in the Licensing Journal, Intellectual Property Magazine, and License India.

Leave a Reply

Your email address will not be published. Required fields are marked *