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January 10, 2025 18 mins

Welcome to Episode 004 of Patent Insider Secrets, where we delve into the fourth pillar of intellectual property: IP Commercialization. This is where the magic happens—where you take all the IP you’ve carefully developed and fortified and turn it into a money-making machine. Today, we explore one of the most incredible success stories in modern gaming history: Rovio’s Angry Birds.

Join your host, Tariq Najee-ullah, as he breaks down how Rovio transformed a simple mobile game into a global entertainment empire. From strategic licensing and trademarking to innovative partnerships and brand extensions, discover the key moves that turned Angry Birds into a billion-dollar brand. Learn how they navigated the challenges of scaling their IP, leveraging patents, copyrights, and trade secrets to maximize their reach and revenue. Whether you’re an entrepreneur, creator, or IP enthusiast, this episode is packed with insights to help you commercialize your own intellectual property successfully.

Tune in to uncover the secrets behind Angry Birds’ phenomenal growth and how you can apply these strategies to your own IP journey.

 

What You’ll Learn:

  1. The Birth of a Global Brand
    How Rovio turned a simple mobile game into a worldwide phenomenon.

  2. Strategic Licensing and Partnerships
    The role of licensing deals in expanding Angry Birds into toys, apparel, and beyond.

  3. Trademarking and Patenting
    Protecting the Angry Birds brand through trademarks and patents.

  4. Brand Extensions and Diversification
    How Rovio diversified the brand into movies, TV shows, theme parks, and more.

  5. Maximizing Revenue Streams
    Exploring various revenue channels—from merchandise to media adaptations.

  6. Challenges and Lessons Learned
    The obstacles Rovio faced and the key lessons for successful IP commercialization

Resources Mentioned:


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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Tariq Najee-ullah, Patent Insider: Transcribed by https (00:12):
otter.
ai
Greetings and welcome toPatent Insider Secrets.
This is episode four, The Commercializer,the game that changed everything.
Welcome to Patent Insider Secrets,saving you from IP disasters.
This is the podcast where we divedeep into the hidden world of
intellectual property, sharingcaptivating stories and expert insights.

(00:33):
I'm your host, Tariq Najeela.
Patent agent veteran 10 yearUSPTO patent examiner startup
IP mentor and IP strategist.
In today's episode we're diving intothe fourth pillar of intellectual
property IP commercialization.
This is where the magic happens,where you take All the IP you've
carefully developed and fortified andturn it into a money making machine.

(00:57):
And today we've got one of themost incredible success stories
in the modern gaming industry.
So imagine this, it's the early2000s and three friends have been
working for years on a passionproject, a gaming app company.
Over the course of severalyears, they've developed 51

(01:19):
games.
That's a lot of games, butthere's just one problem.
None of them have taken off.
None of them have made it big.
In fact, the money is running out.
The reality is sinking in.
They're on the verge ofclosing their doors for good.
But before they give up, theymake one last bitch effort.

(01:39):
They decide to give it one moreshot and create just one more game.
And that game, it wouldchange their lives forever.
They're probably havingsome of these conversations.
And if you're a startup founder, youmight be having these conversations
yourselves, or you've had them before.
I don't know guys, uh, 51 games and webarely made enough to keep the lights on.

(02:02):
Maybe it's time we faced the facts.
This just isn't working.
I know.
I know, but I just can't let go.
I mean, we've put everything into this.
We're so close.
What if we try one moreidea, just one more game.
If it doesn't work, then we'll walk away.
One more.
I mean, we've done this 51 times already.

(02:23):
What's going to makethis one any different?
I mean, we could dosomething crazy, like just.
Go all in on ideas.
I mean, sketch 10 ideas a day.
We're bound to hit something.
We've got to try.
I mean, what's theworst that could happen?
If we fail, we're rightback where we are right now.
Okay, one last game.

(02:44):
Let's go all in.
And that's what they did.
Every day, the three founders sketchedout ideas, refining and discarding
them until they found somethingthey all agreed on and believed in.
And finally, after weeks of brainstormingand experimenting, They agreed on an
idea for a simple, yet addictive game.

(03:07):
Some of you may have guessed it.
Some of you may have guessed it,but that game was Angry Birds.
Did you know this is thestory behind Angry Birds?
It launched in 2009, and what happenednext was nothing short of extraordinary.
The game took off like wildfire,becoming an overnight sensation.

(03:31):
And suddenly, these three friendswho were once on the brink of failure
were now seeing their app downloaded,
And suddenly these three friends who wereonce on the brink of failure were seeing
their app downloaded over 1 billion times.
That's right, billion with a B.
I can imagine a conversationwith someone like this now.

(03:53):
Did you see it?
We hit 10 million downloads!
10 million downloads this week.
I mean, I can't believe it.
We were like about to quit a few monthsago, and now this thing is blowing up.
I've never seen anything like it.
And it's not slowing down.
Look at these numbers.
Hundreds of thousands of peopleare playing every minute.

(04:13):
This is crazy.
And the numbers were astronomical.
1 billion downloads.
Players were spending 200 millionminutes a day on the game.
866 million hours per year.
It was more than a hit.
It was a global phenomenon.

(04:33):
And just like that, their company,which had been worth almost
nothing, was now valued at over 1.
2 billion.
But what really set the storyapart is what happened next.
We've all heard of unicorncompanies and things that, you know,
companies that were on the vergeof defeat and they, they overcome.
And it's, it's a good story.

(04:56):
But these founders knew something else.
They weren't just sitting on a gold mine.
That's something even more valueintellectual property, and they
knew how to commercialize it.
So Rovio, the company that owns angrybirds, they created angry birds.
The founders had patents on theirtechnology, this kind of, uh,

(05:16):
technology where you put your fingeron the app and you can, based on how.
And the intensity or the pressurethat you that controls the trajectory
of the bird and the flash ofthe air and how you destroy the
structures and knock over the pigs.
All of that was part of theirtechnology for a, you know, handheld

(05:36):
game where you use your fingerson a capacitive touchscreen.
So they had patents, they hadtrademarks, they had copyrights.
And so this is the, what's it,they, they, they first, they
took action to protect their IP.
The founders weren't just sitting on agold mine, uh, and just, You know, put

(05:58):
the head in the sand, they trademarktheir brand and the Angry Birds name, they
filed patents on the gaming technologythey developed, they copyrighted the
artwork, the music, and every visualasset created, uh, related to the game.
They copyrighted the artwork, music, andevery visual asset related to the game.

(06:20):
And then they started to think bigger.
I can imagine the brainstormer beinglike, you know, we've got the game.
Really, we're justscratching the surface here.
I mean, 1.
2 billion, uh, a billion downloads.
I mean, we've got the game, butwe're just scratching the surface.
I mean, 1 billion downloads.
What if Angry Birds waslicensed to other industries?

(06:41):
Think about it.
Merchandise, toys, evenTV shows and movies.
We can do everything.
Yeah, I mean, people areobsessed with these characters.
We could license them to toy companies.
Imagine kids playing withreal life Angry Bird toys.
Why Cyber Toys?
We should partner with food andbeverage companies, theme parks.
I mean, the possibilities are endless.
If we play our cards right, thiscould be much more than a game.

(07:03):
And that's exactly what they did.
The founders turned Angry Birdsinto one of the most successful IP
commercialization stories in history.
They licensed the brand to over 100companies globally across industries.
Toys, clothing, restaurant promotions,location based entertainment.
It was everywhere.
Over 2 billion consumer productshave been sold since 2010, with

(07:26):
the biggest categories being toys,clothing, and restaurant promotions.
Their animated content hasgarnered over 10 billion views.
And the Angry Birds movies have generatedmore than 500 million at the box office.
They even had brands and entertainmentcompanies reaching out to licensed Angry
Birds for special releases of the game.
This wasn't just a gaming,it was a global empire.

(07:51):
Now while this sounds like the plotof a Hollywood movie I know, this is
really the real life success story.
The story of Rovio and their hitgame Angry Birds is a masterclass
intellectual property commercialization.
It's not just about creating a product.
It's about knowing how to turn thatproduct into an IP asset that can
generate revenue for years to come.

(08:11):
The real lesson here, if you'vegot a successful product or
brand, you need to protect it andthink beyond the initial launch.
Intellectual property can unlockopportunities in ways you never imagined
if you know how to commercialize it.
So what can you learnfrom Robio Successful?
First, protect your IP.

(08:32):
Trademark your brand, file patents onall your innovations, copyright your
creative assets, and then think bigger.
Look for opportunities to license yourIP to other industries, and let your
brand grow beyond, and let your brandgrow beyond its original product.
That's the power of IP commercialization.
And that's what can turn a simple gameor any product until a billion dollar.

(08:57):
That's the power of IP commercialization.
And that's what can turn a simplegame or any product until, into
a billion dollar global empire.
So let's take a deeper dive into thebrilliant commercialization strategy.
It wasn't just a great game.
They knew how to take thatsuccess and expand it across
multiple markets and industries.

(09:17):
This is a textbook example of howa single intellectual property
properly commercialized can generatewealth across different sectors.
So how do they do it?
Let's break it down.
Well, first and foremost, Rovio made,
well, first and foremost, the mostimportant move Rovio made was realizing
the value of licensing their intellectualproperty to other industries.

(09:40):
Most people see success with a product orservice, but few recognize the potential
to expand it beyond its original form.
Rovio understood that early onwith Angry Birds and they said it's
more than a game, it's a brand.
So they're making thebigger than the game.
So by licensing Angry Birds todifferent industries, they were
able to capitalize on brandrecognition in an entirely new way.

(10:01):
They didn't have to manufacturemillions of toys themselves, or
set up their own clothing line.
They just licensed the rightsto companies that were already
industry experts in those fields.
This meant that they could enter newmarkets without incurring the cost or risk
of that come with traditional expansion.
This means you don't have to becomethe clothing company or become the
toy company, but if you license yourbrand to existing manufacturers,

(10:25):
existing toy companies, existing foodand beverage companies, then you let
them do that work for you and then theypay you a licensing fee or royalty.
Okay, so now let's talk about howthey targeted high impact sectors.
Like toys, clothing and food.
When you think of Angry Birds, youmight automatically think of toys.
And that makes sense.

(10:45):
It's a natural fit for the gamingdemographic, but Rovio didn't stop there.
They also ventured into clothing, food andbeverages, and even restaurant promotions.
They knew that by saturatingmultiple sectors, They knew that
by saturating multiple sectors,they could ensure that Angry Birds
stayed at the top of consumers mind.
And if it's at the top of yourmind, what are you going to do?

(11:07):
You're going to go download theapp, you're going to play the game.
So for example, toys becameone of the largest categories.
By licensing Angry Birds to toymanufacturers, Robio capitalized
on the physical manifestationof the digital characters.
Kids can now play with their favoritegame characters offline, and this
synergy between the digital gameand physical products reinforced the

(11:29):
brand across different platforms.
Now another move was entering theworld of location based entertainment.
This is where Rovio's foresightreally comes into play.
They knew that theme parks, familyentertainment centers, and real world
interactive experiences could offer newavenues to bring Angry Birds to life.
So think about roller coasters,uh, creating immersive

(11:50):
experiences for families, themeparks, entertainment centers.
Imagine walking into an Angry Birdsworld at a theme park, where you can
physically interact with characters in theworld you come to love through the app.
She's in the birds and the pigsand everything to that, but now
it's in person in real life.
There aren't just games anymore.
The entertainment ecosystems, youcan have a Angry Birds themed party.

(12:13):
This extends the life of the brand, allowsthem to keep consumers engaged as long
as they played the games on their phones.
It also allows them totap into a new market.
Families looking for sharedin person experiences.
And the best part, they didn'thave to, Rovio did not need to
build their own theme parks.
They simply licensed theIP to those who could.

(12:34):
And then, let's not forgetthe entertainment industry.
Rovio didn't have to start afilm studio or animation studio.
They essentially made the move bygetting Angry Birds into the world
of movies, TVs, and digital content.
The movies were massivesuccesses generating over 500
million in box office revenue.
But what's even more impress is, butwhat's even more impressive is the global

(12:57):
reach of the Angry Birds animated content.
You know, if you, with over 10 billionviews on the animated content, they found
a way to keep their audience engaged.
And it's not just through the appor the game, but through media.
So these TV shows, these cartoons,these movies, they create emotional
connections with the characters.

(13:17):
Making the brand morethan just about gameplay.
It became part of other people's lives.
And then, you know, Robio expandedthe brand through cross promotion.
So one of the smartest moves theymade, you might've noticed that, you
know, seem like an Angry Birds, um,Star Wars theme, like there's a new
Star Wars movie or, you know, otherthemed thematic versions of the game.

(13:41):
And this is one of their smartest moves.
It was cross promotions with otherpopular brands and companies.
So they used the global popularityof Angry Birds to partner with some
of the biggest names in consumerproducts and entertainment.
This allowed them to expand the brand'spresence in new markets without having
to do all the heavy lifting themselves.
For instance, they partnered with FastFood Shames, turning Angry Birds into

(14:02):
collectible items for kids and kids meals.
Think about the power of a brandlike Angry Birds featured in global
chains like McDonald's or Burger King.
That's tens of thousands of outletsglobally all promoting your brand.
These deals gave Rovio massive exposureand tapped into their markets that they
would not have reached with otherwise.

(14:23):
And uh, another, another masterstroke that the Rovio used was
brand extensions and collaborations.
This is when other companiespay you to use your brand.
And in the case of Angry Birds,other brands reached out to Rovio to
license the Angry Birds characters.
for special editionsof their own products.
For example, sports teams, shoecompanies, beverage brands, all wanted

(14:46):
to collaborate with Angry Birds.
This not only opened up new revenuestreams for Rovio, but also kept the
brand fresh in consumers minds throughunexpected and innovative partnerships.
And I'll say finally, I would justsay looking at it licensing and in the
long tail global region scalability.
So let's let's talk about long,the long tail license Rovio

(15:08):
was smarter to think globally.
I mean, it helps it as a finishedcompany so that they're based in England.
I mean, uh, they're based in Europe.
Rovio was smarter to think globally andscale its operations so now they're over
100 licensees globally, using the anchors.
Using the Angry Birdsbrand in various ways.
This kind of reach wouldn'thave been possible without an

(15:30):
aggressive licensing strategy.
So think about that.
You already have Angry Birdsin different languages.
The app is translatedto different languages.
You have the branding, the marketingof the product in different languages.
So the founders realized that if AngryBirds could be bigger than a game in
just one country, by licensing, bylicensing their IP globally, they were

(15:55):
able to tap into markets they wouldn'thave been able to penetrate themselves.
Each market has its own specificlicensing deals, making the Angry Birds
brands, uh, as ubiquitous in Asia asit was in North America and Europe.
So in summary, Rovio didnot just create a hit game.
They created an intellectualproperty powerhouse.

(16:18):
Their success didn't just comefrom Angry Birds the game, but
from Angry Birds the brand.
They understood that to trulycapitalize on their IP, they needed
to license it smartly, extendingit into different industries
and form strategic partnerships.
So what's the lesson for you?
Maximize your IP's potential.

(16:39):
What can you learn from Robio's strategy?
Here's a key takeaway.
Don't limit your IP to itsoriginal product or form.
Once you've got a successfulproduct, protect it, fortify it,
and then think about how you cancommercialize it across industry.
Explore licensing opportunities, brandextensions, and strategic partnerships.
Your intellectual property isnot just a one time success.

(17:01):
It's a long term asset that can bringyou value across multiple platforms.
Remember when you're thinking aboutIP commercialization, think big,
your product might just be thestart of something much larger.
So that wraps up today's extendedepisode of Patent Insider Secrets.

(17:22):
We've explored how to commercializeintellectual property offensively.
Join us next week where we dive into thefinal pillar of IP of We Have the Five
Pillars of Intellectual Property, GRIT.
We talk about the perseverance anddetermination needed to build and
defend your intellectual propertythrough all the challenges.
I'm Tariq Najeela, and this hasbeen Patent Insider Secrets,

(17:44):
helping you protect your ideasand turn them into real assets.
yeah.

(18:06):
Yeah.
Yeah.
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