4iP Blog

4iP - What’s the right deal for deal rights?

When 4iP launched in October last year we knew one of the key questions we’d be asked was how we would deal with IP and rights.  Our blog post (http://www.4ip.org.uk/blog/post/4ip_update/) last September attempted to address this, explaining that 4iP’s commitment to innovation and experimentation would require a flexible approach to both the business models used and the way in which we dealt with IP and rights.  This was principally because, with such a wide range of projects and partners operating in such a dynamic and fast paced sector it was impossible to come up with anything remotely ‘standard’. 

However, there was always a danger that, in the absence of done deals, some would interpret this flexible approach as ‘we’re not going to tell you because you’re not going to like it’.  So, just over a year from the launch and, with around 30 projects under the 4iP belt, we thought it was a good time to clarify our position. 

Flexiblility

The principle of flexibility remains; the widely differing needs and requirements of our various investments combined with the rapid and ever-changing development of business models in this fast-moving sector means it remains appropriate to consider the circumstances of each and every deal: this approach is sound and sensible.

We adopt a range of approaches to rights ownership and rights exploitation, and believe that the responsibility for the latter should be placed in the hands of those best able to maximise availability and potential for revenue.  We believe it makes sense that whoever is in the best position to market, distribute and sell the product should be given the responsibility to do so contractually.  For all 4iP projects to date that has been the company that pitched the project, with 4iP providing support and advice as needed. .

In all deals done to date, the companies 4iP has contracted with own the project IP and are the party primarily responsible for realising the value of that IP.  However, we need to retain flexibility as this approach might not be appropriate for all projects. 

Showcasing not warehousing

We also believe that 4iP should leverage its access to the assets of Channel 4 to increase the impact of the projects it backs.  That may mean using our platforms to feature 4iP products, where appropriate.  However, the successful sustainability of web and mobile products and services lies in their breadth of distribution.  To that end, 4iP generally takes a non-exclusive license to use and promote the output of the project.

Risk and reward
Finally, it is also worth remembering that with the responsibility of owning and exploiting IP comes not only reward but risk.  Live products have running costs and require plenty of ongoing maintenance and development.  It is rare that the IP created in a project can simply be exploited for commercial gain without requiring ongoing investment in terms of time, effort and funds.  We therefore structure our contracts to recognise the input and risks taken by everyone involved in the creation and ongoing exploitation of our products and services, which we believe is ultimately of benefit to everyone.