IoT is everywhere. Everybody seems to talk about it. But we hear less about IoT protection, and rarely about their financial valuation as it is possible to value patents, trademarks, software…
So what do you need to master to promote the best possible value of your connected objects?
IoT: a booming market
You must have noticed it : the current high-tech revolution is no longer that of smartphones. Internet of Things (IoT) dethroned them on social networks, medias and even in stores and soon enough in our lives. Many companies are trying actively to connect anything, from your refrigerator to your fork through clothing, watches…
This lucrative market should reach more than 1,700 billion for 2020!
In other words, to be placed on this brand new playing field, you’d better know what is to be done to avoid beginners mistakes that would delight your competitors …
A connected object, what is it?
A connected object is a product with multiple components. It differs from conventional products because it integrates services by associating an object with a particular design, but also a specific software (which gives it its connected feature) and data.
How to lock your operating strategy?
To lock your place on the market, besides the usual recommendations concerning design quality, suitability to market requirements and marketing performance (or growth hacking), it is important to protect your innovation to limit copying or counterfeiting.
It is indeed all of those elements that will determine the best financial value of the innovation you propose.
Financially valuable elements are those that differentiate your innovation from your competitors’ and you have also to prove the authorship of the following elements:
- the trademark (or name) of the connected object;
- software, application, website (copyright or patent in the USA) and associated algorithms (potentially patentable or kept secret)
- the object design (by filing a design/model or three-dimensional trademark);
- innovative technology that is integrated to the object (secret or patent)
- the database (copyright or sui generis right)
- but also ensure (by contractual acts) that no third party will claim authorship of any elements above, especially if you use outsourcing or partnerships.
The protections that have been settled in order to erect entry barriers cover as far as possible all geographical areas in which you intend to use your product and associated services.
Impact of the valuation
On this basis, the traditional data related to market and the exploitation (business model, expected costs and revenue, acquired market, network …) will be treated to achieve an objective assessment.
This assessment will boost your credibility when dealing with potential partners, investors, or to display a share capital that better reflects the value of the company, if you create fior instance a subsidiary dedicated to the exploitation of your connected object and make a contribution in nature of this activity (total or partial asset contribution) therefor.
The valuation of IoT in your business is a highly strategic act that often limits the dilution of the founders’ shares in case of fund raising.
Think about it !
Any question? Contact us !
Picture credit : webdesobjets.fr