Use intellectual property to grow your business

If you do not want to, or cannot, exploit your intellectual property (IP), you can sell it to someone else. Selling your IP gives you a one-off payment for the time and money you invested. The buyer then has full rights to use the IP.

Valuing your intellectual property for sale

Intellectual property is an intangible assets, so it can be difficult to value. However, it often plays a key role in creating competitive advantage.

Common ways to estimate IP value include:

• comparing what similar assets have sold for
• estimating future income the IP could generate
• calculating the cost of creating or replacing the asset

For more information, see tips on business asset valuation and guidance on valuing your intellectual property.

IP sale agreements

Most IP sales are agreed at a fixed price. However, some agreements include additional payments - for example, if certain targets are met.

You can limit the sale by geographical area (territory). For example, you might sell the rights for one country but keep rights elsewhere.

You can sell your IP to anyone you choose. However, if you sell a patent, registered design or trade mark, you must notify the Intellectual Property Office.

Advantages and disadvantages of selling your IP

Advantages

• You get guaranteed payment upfront.
• You avoid any ongoing management or involvement.

Disadvantages

• Your returns are limited to the sale price.
• You lose control over how the IP is used.
• You will get no future income from the asset.

Consider these factors carefully before deciding whether to sell or license your IP.

Legal considerations

Some IP transactions may require government approval. Under the UK National Security and Investment Act 2021, certain IP deals in sensitive sectors may be subject to review. Check if you need to tell the government about your acquisition.