Intellectual propertyCompany

(IPCO)

here you put all you have worked on in the last years, developing time, patents, etc. etc. for a total Value of xm euros

Operating Company(OPCO)

In OPCO you use IP and share with partners and you do business with customers

Inventor =100% owner

Inventor =33% owner

Partner2 =33% owner

Partner3 =33% owner

Exclusive use of IP rights

Royalty payments for use of IP rights

For example with 2 other partners and 1/3 share each

Commercializing your IP in the market place, think about protection!

• Protect your intellectual property when you do business with an investor / business partner / business angel / etc to use your IP for commercializing in the market• Value your IP in a separate Company: add all costs, time spent, patents costs and estimated future value • In practice this quickly adds up to 5-10 million euri , inventor is 100% owner of IPCO• Agree exclusive licensing rights for use of the IP in a (new) operating company• Agree royalty payments (after OPCO makes profit or % of revenue)• If partnership does not work you can exit OPCO or if OPCO goes bankrupt, but you still have your IP

Protection when Commercializing your IP

© Ir P.F. Krijnsen MBA, Jan 2011