The Underlying Logic of Building an IP
Perspective on IP Creation and Monetization
We are revisiting a previously popular article, The Underlying Logic of Building an IP, in hopes that it will inspire your approach to creating and sustaining intellectual property.
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Why IP Is Everywhere
Over the past few years, a notable phenomenon has emerged:
- IP hits
- IP monetization
- IP creation
Entrepreneurs, founders, and CEOs — once hidden in the background — are now asking themselves:
- Should I create my own “personal IP”?
- What exactly is IP?
- Why do some grow their IP successfully while others fail?
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Understanding IP
An IP today is much like a brand. But registering a trademark or creating a character alone does not guarantee any premium or market traction. These are just containers — empty until you put value into them.
Key Point
The core ability is to win consumer affection, trust, and purchase preference.
Without this, your "container" remains empty.
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Step 1: Putting Money Into the Container
Walt Disney famously reminded us:
> “I just hope people never forget that it all began with a mouse.”
The Mickey Mouse Example
- Debuted in 1928, becoming the first global sound cartoon star.
- Earned $80.3 billion cumulatively by Statista’s 2021 data.
- Annual licensing revenue: $3.2 billion USD (excluding merchandise, parks, etc.).
Why so powerful?
Because Disney continuously invests in content creation, fueling recognition and goodwill.
Disney’s 2022 content production budget:
- $33 billion USD — Marvel films, Pixar animations, TV series, documentaries.
> Rule #1: Deposit with content before withdrawing with products.
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Step 2: Accumulation & Expansion
Accumulation
- 1928: 30 Mickey Mouse shorts released in one year — saturating public awareness.
- Early trademark licensing (e.g., $300 for use on hotel stationery).
- Soon expanded to toys, silverware, peanut butter, wallets, and more.
Expansion
- Acquisitions: Marvel, Pixar, 20th Century Fox.
- Replication of IP growth across multiple franchises.
- Continuous global content distribution.
Formula:
> Produce → Reach People → Build Recognition & Affection → Increase Value
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Step 3: Withdrawing From the Container
Once you've built recognition:
- Movies, TV shows bolster box office.
- Character + merchandise = higher sales (T-shirts, mugs, accessories, etc.).
- Co-branded goods (limited editions, theme hotels) expand revenue streams.
Virtual or physical goods are just products — they are the vehicle for withdrawal.
> Rule #2: Store money with content, withdraw with products.
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Interest vs. Principal
Think carefully before setting prices:
- Low price (e.g., 40 yuan)
- Fans buy repeatedly — sustainable “interest.”
- Mid price (e.g., 400 yuan)
- One-off purchases — limited longevity.
- High price (e.g., 4,000 yuan)
- Alienates fans — burns “principal” and ruins the jar.
> Only take the interest — never deplete the principal.
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Modern Creator Economy & AI Tools
Open-source platforms like AiToEarn官网 enable creators to:
- Use AI to generate and publish content across Douyin, Kwai, WeChat, Bilibili, Xiaohongshu, Facebook, Instagram, YouTube, Pinterest, X (Twitter) and more.
- Manage cross-platform publishing, analytics, and AI model rankings — boosting reach and monetization without breaking the “IP jar.”
These tools align perfectly with content first, sustainable withdrawal later strategies.
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Final Words
In 2023:
- Mickey Mouse entered its final year under U.S. copyright protection.
- Disney marked its 100th anniversary.
- Still producing content, depositing value into IP.
- Still launching products, withdrawing value from IP.
- 2022 revenue: $83.745B —
- Media & Entertainment: $55.04B
- Parks & Products: $28.705B
Underlying logic of IP jars:
- To receive, you must first give.
- Only take the interest, never the principal.
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Actionable Takeaways:
- Invest relentlessly in building recognition via valuable content.
- Expand reach by diversifying channels and formats.
- Price responsibly to sustain long-term fan goodwill.
- Leverage AI tools like AiToEarn to efficiently grow and monetize across platforms without depleting your brand equity.
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Would you like me to create a single visual "IP Jar" framework diagram summarizing this flow so it’s easier to apply? That could turn this entire article into a one-glance business strategy map.
