By Jade Tang

A friend tells you that he has had a “brilliant idea” that will make him “millions. You wonder whether this idea could be commercialized and if so, how you can invest in it?

An idea by itself is rarely protectable but as soon as that idea can be transformed into intellectual property, that intellectual property can be protected.

The standard way of investing in an idea is for the related intellectual property to be transferred to a limited liability company which would then act as the joint venture vehicle between the creator of the intellectual property and any investors (“JV Co”).