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15 handpicked stocks

Intellectual Property

These companies own valuable ideas, brands, and inventions that generate reliable, contract-guaranteed income. Their asset-light business models create high-margin revenue streams without the costs of physical production, making them potential profit powerhouses across multiple industries.

Author avatar

Han Tan | Market Analyst

Published on June 17

About This Group of Stocks

1

Our Expert Thinking

Instead of factories or inventory, these companies own something even more valuable — protected ideas. They generate predictable income by licensing intellectual assets like drug patents, music rights, and famous brands to others. This creates recurring revenue streams backed by legal agreements, often with minimal overhead costs.

2

What You Need to Know

This group offers exposure to high-margin businesses that don't require heavy infrastructure investments. Their income tends to be contractually protected and diversified across industries from pharmaceuticals to entertainment. While these companies can deliver steady cash flow, their performance ultimately depends on the ongoing value of their intangible assets.

3

Why These Stocks

We've selected pure-play royalty firms in biotech and media alongside established companies with significant licensing operations. These businesses are positioned to potentially benefit from accelerating digital transformation and continued innovation in life sciences, which constantly create new valuable intellectual property opportunities.

Why You'll Want to Watch These Stocks

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Recurring Royalty Income

These companies earn money every time someone uses their intellectual property, creating potential for steady, predictable revenue streams without hefty production costs.

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Contract-Protected Profits

Many of these businesses lock in multi-year licensing deals that provide revenue visibility others simply don't have. This contracted income can help weather market volatility.

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Digital Age Accelerators

As streaming platforms expand and biotech innovation accelerates, the demand for licensable intellectual property continues to grow, potentially giving these companies significant tailwinds.

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