• 6 min read
• Published on 25 July 2025
Hey! We are Nemo.
Nemo, short for Never Miss Out, is a mobile investment platform that delivers curated, data-driven investment ideas to your fingertips. It offers commission-free trading across stocks, ETFs, crypto, and CFDs, along with AI-powered tools, real-time market alerts, and themed stock collections called Nemes.
Download the App
Scan the QR code to download the Nemo app and start investing on Nemo today
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article
View the full Basket:Intellectual Property Royalties
I’ve always found the idea of owning a factory rather dreadful. The constant worry about supply chains, union disputes, and whether anyone will actually buy the widgets you’re churning out. It all sounds terribly stressful. Now, compare that to owning the rights to a hit song. You write it once, and for the next fifty years, a small cheque might arrive every time it’s played on the radio, used in a film, or streamed by a teenager in Tokyo. One involves grease and headaches, the other involves a letterbox. To me, the choice seems rather obvious.
This, in a nutshell, is the appeal of investing in intellectual property, or IP. It’s the business of owning ideas, not things. And in our increasingly digital world, it’s a theme that I think investors would be foolish to ignore, provided they understand the risks.
View the full Basket:Intellectual Property Royalties
Let’s be clear, this isn’t some fanciful concept. There are companies whose entire business model is built on this elegant premise. Take a firm like Royalty Pharma. They don’t discover drugs, they don’t manufacture pills, and they certainly don’t deal with patients. Instead, they buy up the royalty rights to successful pharmaceuticals developed by others. When a big pharma company sells a drug using that patent, Royalty Pharma gets a cut.
The beauty of this is the margin. There are no factory overheads, no inventory to manage, no logistical nightmares. It’s one of the purest revenue streams you can find. The hard work, the billions spent on research and development that might lead nowhere, has already been done by someone else. These companies simply swoop in to collect potential rewards from proven winners. It’s a wonderfully pragmatic way to operate.
View the full Basket:Intellectual Property Royalties
This isn’t just about medicine, of course. The principle applies everywhere. Disney has been the master of this for decades. They created a mouse nearly a century ago, and they are still collecting royalties from every t-shirt, lunchbox, and theme park ticket that bears his image. The initial creative effort could pay dividends, again and again, across generations and continents.
Then you have the technology sector, which is a veritable goldmine for IP. A company like Qualcomm doesn’t need to build a single smartphone to profit from the entire industry’s growth. They own fundamental patents for wireless technology. So, every time a phone maker builds a device that connects to a 5G network, Qualcomm may get a licensing fee. As the world becomes more connected, their library of ideas could become ever more valuable.
View the full Basket:Intellectual Property Royalties
Now, before you rush off thinking this is a risk-free path to riches, let’s pour a little cold water on the idea. Investing in IP has its own unique set of traps. The most obvious is the patent cliff. A patent, unlike a diamond, is not forever. When it expires, that gusher of royalty income can dry up overnight. A blockbuster drug can go from a cash cow to practically worthless in a heartbeat.
Furthermore, technology and tastes change. A patent for a revolutionary piece of tech can be rendered obsolete by the next big thing. And the pop song that’s generating millions today might be forgotten tomorrow. Consumer whims are a fickle foundation on which to build an empire. You are betting that an idea will remain relevant, which is never a certainty.
View the full Basket:Intellectual Property Royalties
So, what’s the verdict? To me, intellectual property represents a fascinating and modern way to diversify. These companies often dance to a different tune than the broader economy. People might stop buying new cars during a recession, but they’ll probably keep streaming music and taking their prescribed medication. This could add a layer of resilience to a portfolio.
The challenge has often been getting access. You can’t exactly pop down to the shops and buy a slice of a drug patent. However, you can invest in the companies that own these rights. Exploring a curated collection of these firms, like the Intellectual Property Titans basket, could be a way to gain exposure to this theme without putting all your eggs in one patent-protected basket. It’s a way of betting on human ingenuity itself, and while that carries risks, it’s also one of the most powerful forces on the planet.
View the full Basket:Intellectual Property Royalties
View the full Basket:Intellectual Property Royalties
View the full Basket:Intellectual Property Royalties
View the full Basket:Intellectual Property Royalties
View the full Basket:Intellectual Property Royalties
View the full Basket:Intellectual Property Royalties
This article is marketing material and should not be construed as investment advice. No information set out in this article be considered, as advice, recommendation, offer, or a solicitation, to buy or sell any financial product, nor is it financial, investment, or trading advice. Any references to specific financial product or investment strategy are for illustrative / educational purposes only and subject to change without notice. It is the investor’s responsibility to evaluate any prospective investment, assess their own financial situation, and seek independent professional advice. Past performance is not indicative of future results. Please refer to our Risk Disclosure.
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article
published-on
Read article