Not all IP is ready to commercialise. A strong brand that is not yet trademarked is not ready to licence. A valuable operational system that exists only in the founder's head is not ready to franchise. A proprietary method that has not been documented cannot be white-labelled. This checklist helps you assess the readiness of your IP across three commercialisation pathways — licensing, franchising, and digital — so you know exactly what to build next.
Commercialisation is not the step that comes after you have built your IP. It is the step that reveals whether what you have built is an asset or just a capability. The gap between the two is almost always documentation and protection.
How to Use This Checklist
Score each item: 2 = fully in place, 1 = partially in place, 0 = not in place. Total your score for each section. Scores are interpreted at the end of each section. Be honest — this assessment is most valuable when it is accurate rather than optimistic.
Part A: Foundation Readiness (All Pathways)
These items are required regardless of which commercialisation pathway you choose. A score below 8 here means no pathway is ready to activate.
IP is documented in writing — key systems, methods, and brand standards exist in written form accessible to someone other than the founder
IP ownership is legally established — all IP is formally assigned to the business entity, not held personally by the founder or unassigned from contractors
Brand IP is registered — the trading name and key brand elements are registered as trademarks with IP Australia in relevant classes
IP Asset Register exists — a current, complete register of all IP assets is maintained and up to date
Confidentiality protections are in place — NDAs, employment clauses, and contractor agreements protect commercially sensitive IP from unauthorised disclosure
Foundation score /10: 9–10: Foundation ready — proceed to pathway-specific assessment. 6–8: One or two gaps to address before activating any pathway. Below 6: Foundation work is the priority. No pathway is ready yet.
Part B: Licensing Readiness
Licensing is the most accessible commercialisation pathway for most SMEs. It generates recurring royalty income from IP others use, without the compliance overhead of franchising.
The IP to be licensed is clearly defined and bounded — you can describe exactly what the licensee will receive access to and what is excluded
A commercially relevant royalty rate can be justified — you have researched comparable licence rates in your industry and can defend your pricing
A draft licence agreement framework exists — you have a documented starting position for licence terms, not just an intention to licence
At least one potential licensee has been identified — there is a real market for this licence, evidenced by conversations or market research, not assumption
Licensing readiness score /8: 7–8: Ready to approach first licensee. 4–6: 60–90 days of preparation required. Below 4: Licensing is premature — document and protect first.
Part C: Franchise Readiness
Franchising requires the highest level of IP readiness. It demands not only documented systems but proven, transferable ones — and a brand strong enough to command a franchise fee from third-party operators.
The operating system is fully documented and teachable — a new franchisee could run the business using the documentation alone, without the founder's ongoing involvement
The business model has been proven in at least one company-operated site — the system works consistently and the financial model is validated
Brand recognition exists beyond the founder's personal network — the brand has demonstrated market pull that would transfer to a franchisee's territory
Legal counsel has reviewed franchise disclosure requirements — Australian franchise law (Franchising Code of Conduct) requirements are understood and a path to compliance is in place
Franchise readiness score /8: 7–8: Franchise-ready — engage a franchise development specialist. 4–6: 6–12 months of system development and legal preparation required. Below 4: Consider licensing as an interim pathway while franchise-readiness is built.
Part D: Digital Commercialisation Readiness
Digital commercialisation — online courses, SaaS products, digital licences, subscription knowledge products — is the fastest-growing IP commercialisation pathway for SME knowledge businesses.
The knowledge or system can be delivered digitally without the founder's live presence — it can be captured as content, software, or a documented process that users access independently
A target audience for the digital product has been identified and validated — there is evidence of demand, not just an assumption that people will pay for access
The pricing model is defined — one-time purchase, subscription, or tiered access has been chosen and can be justified by comparable market products
Digital readiness score /6: 5–6: Ready to develop your first digital product. 3–4: Validate the audience and pricing before investing in development. Below 3: Define the product clearly before assessing the pathway.
If you have completed this checklist and want to discuss your results, the THINK IP Growth Foundations Session is the right next step. In 90 minutes with Dr M you will have a clear picture of which pathway is most appropriate for your IP profile and a specific 30-day action plan to begin activating it.
