Why is this important?

Commercialising Intellectual Property (IP) is the process you undertake to get your innovation, whether it is in the form of products or services, to the market place. Bringing IP to a market-ready state may require a large amount of effort as well as a substantial investment as it will involve:

• developing the concept further
• testing and trialling the product
• designing tools
• developing a manufacturing facility
• developing a business or marketing plan
• marketing, promoting and selling the product

What to do

There are various ways in which you can commercialise your IP. These include commercialising in-house or with a partner; outsourcing; and commercialising to a world market. You need to consider which strategy is best for you.

Commercialising in-house or with a partner

Commercialising your IP in-house involves you developing your product to a market-ready state without any external assistance. This means that you will have the burden of taking on all the work and risks associated, yet will be able to reap all the benefits it you are successful.

Commercialising with a partner means you involve one or more parties to assist in developing your product to a market-ready state.

Outsourcing

Outsourcing may be an option if you do not have the capability to personally and exclusively manufacture, market or sell your IP product and do not wish to partner with another company. Outsourcing involves you, as the IP product owner, contracting one or more people or companies to undertake a specific task/s. For example, you might contract a company to physically produce your product and then promote and sell it yourself, or simply contract another person or company to do this for you as well.

Commercialising to a world market

Once you have decided the best approach to commercialising your IP for the Australian market, you may consider international expansion. Two possible scenarios that you might consider are:

• retaining manufacturing and selling rights in Australia (and some countries)
• licencing the manufacturing and selling rights to a partner in relation to other countries

or

• retain manufacturing and selling rights in Australia and the global market and
• outsource manufacturing and selling tasks to an overseas provider over which you retain total control

IP and taxation

You should be aware that you may face potential taxation liabilities during the various stages of commercialising your IP. These include:

• taxes on income and gains made from commercialising IP

 and

• transaction taxes such as GST, stamp duty and withholding tax

It is recommended that you seek appropriate professional advice when determining your tax obligations in regards to intellectual property.

Source: www.smexcellence.com.au

Where to go for help

Tax Obligations

http://www.iptoolbox.gov.au/default.asp?action=article&ID=188

Taxation

http://www.ipaustralia.gov.au/ip/introduction.shtml

http://www.iptoolbox.gov.au/default.asp?action=category&ID=16&order=categoryname&sort=asc&limit=0

Online Business Directory

NSW Business Chamber Online Business Directory connects you to thousands of businesses across NSW. With exclusive access to special offers and great deals, you will find a service provider, business partner or supplier who can meet your needs. Listing on the Online Business Directory  is open exclusively to NSW Business Chamber members.

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