Diversification of activities by integrating new products, a way of survival and development for subcontracting SMEs

A landmark case:

Brandon Valorisation was approached by a local Chamber of Commerce and Industry (CCI) confronted to insufficient activity in the small and medium enterprises of its territory.

The problem was that 3 major companies, whose business volume declined strongly, were no longer able to place orders with the 400 companies of the affected employment region.

 

The method:

Our experience in working with SMEs shows that this kind of company shall, wherever possible, free itself from the dependence on major contractors because it is a risky situation.

The solution: to have an exclusive right to exploit innovative products, either as a full owner or as a licensee.

Thanks to our proximity to an intellectual property consulting firm, we know that an important number of patents is still untapped for strategic or industrial reasons, for a lack of means, etc.

In the light of this situation, we have developed a method that encourages the meeting between patent owners and companies wishing to diversify their activities.

Thanks to this method, these SMEs have the possibility of acquiring an exclusive right to exploit a product or a technology.

It is the integration (by license) of innovative patented products that correspond to their size and know-how.


An example:

A real case of diversification in a subcontractor SME:

  • An industrial company (SME with 150 employees) in the automotive sector is facing a downturn in economic activity.
  • This company asks for a diagnosis to be realized, to evaluate more specifically its human resources and know-how, production means, financial resources, etc.
  • On the basis of the result of the diagnosis and in consultation with the manager, Brandon Valorisation selects and makes proposals for different patents related to the chosen field of activity.
  • After a thorough analysis, the company chooses a monitoring system for controlling high security mechanical connections between large tubes.
  • A prototype is then prepared, which makes possible for the company to evaluate the market, and more particularly the field of sensitive environments such as nuclear power plants.
  • After market assessment and appreciation of the quality of the patent (by Brandon IP, Patent & Trademark Attorneys), the company acquires the exploitation rights with an exclusive license agreement for both the technology and its associated know-how.

The case of this company is not isolated. Many small businesses are facing a strong competition and therefore a reduction in orders from their customers, which is sometimes drastic.

Unable to face this competition, they are looking for solutions to maintain their level of activity.

To compensate certain losses of revenues, the company in our example decided to diversify its activities to become free from subcontracting. Since the vocation is not to develop its own products from scratch, the manager followed our advice. We thus supported him in the acquisition of an operating license for a patented product.

Acquiring innovative patented products is an effective strategy to guard against the risks inherent to the dependence on major companies.

 


Presentation of our firm:

Brandon Valorisation has developed an original method dedicated to SMEs for the revitalization of industrial employment areas.

The firm also supports its clients in the economic and financial valuation of their innovations protected with an industrial property title, and their associated know-how.

We also undertake the search for partners (licensees and acquirers for the rights) who may ensure the exploitation and/or commercialization of their product. And finally, our firm assists its clients in the negotiation and drafting of operating agreements.

 

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