Intermediaries of IP Commercialization and Its Business Operation in Term Paper

Intermediaries of IP Commercialization and Its Business Operation in the Open Innovation, much(prenominal) as Non-Practicing Entities (NPEs - Term Paper ExampleThe research and development team of organizations focus on developing and fabricating creative ideas that can help the company in coming out with a product that meets the evolving need of the customer and more. While in the recent past most organizations operated on the principle of closed presentation that required the companies generate, develop, and market their own ideas, the past few years have witnessed a dramatic shift towards at large(p) innovation model where the companies commercialize out-of-door (as well as internal) ideas by deploying outside (as well as in-house) pathways to the market (Chesbrough, 2003, p36). This rising model has gained wide popularity owing to its wider perspective and application that allows companies to create abide by through an open culture and closer integration with its surroundin g environment. Open innovation model is based on free flowing knowledge and randomness sources that contribute to value addition for both manufacturers as well as end consumers. While the model does allow businesses to utilise and exploit untried opportunities, the altercate lies in tapping key knowledge resources and expertise that have the potential to generate profitable ventures. The closed innovation business model applied strict controls everyplace its intellectual property rights (IPR) and the management focused on guarding its IPR to prevent competitors from stealing their innovative ideas. But in the age of open innovation model, businesses focused their strengths on commercializing their ideas and allowing its competitors to use their IP and purchase other firms IP to improve profitability. The organizational strategies today work on defining new strategies that enable them to exploit the open innovation model for creating new ventures and expanding their existing scop e of markets and revenue towards potential revenue addition sources. The focus is to utilise their existing resources and technologies to accomodate innovative ideas that open new sources of market capturing strategies and expanding operational scope (Chesbrough, 2003). The key issue that arises from the open innovation model is the protection and commercialization of intellectual property (IP) and the different intermediary convey used for this purpose. It must be noted in this context that IP is an intangible asset that is not only difficult to valuate but as well as involves a lot of legal risks. There are number of intermediary channels that enable easy and smooth transaction of IP between innovators, funders and future users who develop products based on the IP. The paper provides a deeper insight into the operations and mechanisms of these intermediary channels that cash in on firms looking for IP that creates new opportunities in an open innovation environment. Intellectua l property the concept Before going into the details of IP intermediaries and its commercialization aspects it is important to understand the concept of intellectual property and its basics. Intellectual property can refer to any innovative idea and this idea has the potential to