You may learn through word of mouth or effective promotions that there is an upcoming in-person or online auction for intellectual property. This may particularly pique your interest if you are a business owner looking to build your portfolio of assets or make a more notable position for yourself in the marketplace. Before jumping in head first, so to speak, please read on to discover whether it is wise to sign up for an auction and how a seasoned Essex County, New Jersey intellectual property lawyer at The Ingber Law Firm can guide you before you enter your first bid.
What are the types of intellectual property auctions?
Before all else, you should know whether you must prepare for an open or sealed intellectual property auction. The former is a public bidding process where pieces of intellectual property are priced at a minimum amount, interested buyers bid against one another and drive up the price, and the property is sold to the highest bidder.
The latter required interested buyers to submit their bids in a sealed envelope or another confidential manner up to a certain deadline. In this way, without knowing the bids of others, the price may not get exponentially inflated in the heat of the moment.
As a prospective buyer, should I sign up for an intellectual property auction?
An intellectual property auction may be a cost-effective way to acquire valuable, already-established intellectual property. This is rather than you putting an indefinite amount of money, time, and energy toward creating these works from scratch. However, this may only be cost-efficient if you proceed with this auction wisely.
That is, you must do your due diligence in conducting research. This means analyzing the current market and your business’s current needs to determine whether a certain piece of intellectual property has the potential to compete and strengthen your stance against your competitors. Then, assigning an accurate value for the property up for auction, and promising yourself not to place a bid over this amount.
Also importantly, though, you must confirm that this property is recognized and protected by the United States Patent and Trademark Office, the United States Copyright Office, or other authorized entity. You may rest easier if a lawyer helps you with this investigation.
What are other ways to acquire intellectual property?
Upon deeper consideration, you may conclude that entering an auction is not the most cost-friendly or strategic way to acquire intellectual property. Rest assured, there are other ways to go about this, which in the end, may make the most sense for your business goals. They read as follows:
- You may purchase the intellectual property outright from the owner selling it.
- You may enter a licensing agreement with another owner to use their intellectual property in a specific scope.
- You may enter a joint venture agreement to combine your intellectual property with another owner’s to achieve the same business goal.
- You may acquire an owner’s entire business, which comes with their valuable business assets and intellectual property rights.
Before this gets too much, please seek the guidance and counsel of a competent Essex County, New Jersey intellectual property lawyer from The Ingber Law Firm. We will work to the best of our ability to minimize or eliminate this mess from your immediate worry.
