A new invention in the marketplace requires countless efforts. From the first day you start, it becomes a time-consuming process. However, you must file a patent license to secure and protect your patent from misuse or copyright infringement.
However, filing a patent in itself is a lengthy and expensive process. But, the benefits of enforce patents give you a competitive edge in the target market.
What Does Patent Licensing Mean?
Patent licensing means giving the ownership of your invention to a third party, allowing them to sell your invention (exclusively or non-exclusively) for a pre-decided amount.
In short, patent licensing is a mutual agreement between two parties, individuals, or companies (or only a company), who you choose to create, put to good use, and sell the invention to the market.
Since you are the patent owner, you will continue reaping the benefits of your invention whenever any company or client adopts it. However, before you decide to go for patent licensing, ask yourself the following questions:
- Do you have the budget for patent licensing?
- When you decide to license your patent, would you consider companies or individuals for the patent’s ownership?
- Is selling the patent a consideration for you?
- Does maintaining the rights of the patent matter much to you?
Once you answer questions like these, you will be able to move forward with the patent process. Moreover, you would develop a clear idea of whether you want to sell, license patent, or manufacture (or anything else), the potential parties, and if you would consider giving the license to third parties exclusively or non-exclusively.
How to License a Patent?
Licensing a patent isn’t easy. To find licensing opportunities, you must make your product available to a few individuals or companies in the market for them to have a clear idea of what your invention is. Here are a few ways you can license a patent:
1. Display Your Invention in an Appealing Way
An established company won’t ever invest in your product unless they see something new in it- something they don’t provide but is valuable to the audience. A company that isn’t in the same field as your invention could still take it as long as they see their profit in it. So, you need to display your invention in the best way possible to attract attention.
2. Make a List of the Best Patent Licensing Service Providers
You should move forward to this step if and only if you are sure that your product has the potential to shine in the market.
Hiring a patent licensing company can result in finding good companies that could be potential candidates for the patent agreement. Then, go forward with noting down the names of the companies you feel are the potential licensees for your product.
3. Conduct a Thorough Market Research
Before you think of patent licensing, it’s best you conduct thorough market research. Write the names of the companies that manufacture the same product or similar product as you have invented.
Then, check if they want to invest in the same field. However, make sure you are ready to hand over the IP as every big company wants it to exclude others from manufacturing the same product.
4. Find Companies Infringing on Your Patent
When you find the right party for the patent agreement, don’t think your job is over. Search the market to see if companies are using the same product or technology as your patent. If they have used your product or technology without taking a license, it is illegal.
Moreover, this is called patent infringement. So, you need to take strict actions against this infringement. You could take them to court or offer your license at a pre-decided cost so they can use the product or technology with your permission.
Why License Patents?
When you sell your invention’s patent to a big organization, they might give you enough money to last a lifetime. However, selling the patent means losing all rights of your invention.
The alternative to this is licensing a patent. Licensing a patent also means making money, but it also has a few other benefits:
1. Patent Licensing Enables Your Product’s Easy Availability
Licensing a patent becomes the easiest way of turning your dreams into reality. You give life to your product idea without investing from your pocket. Moreover, you make money as long as your patent doesn’t expire.
2. Eliminates the Stress of Manufacturing Cost for You
Since you signed away the license to another company or individual, you won’t have to deal with either the product’s manufacturing costs or its distribution. As the product inventor, you become liability-free and won’t have to deal with any costs or calculations while receiving fortunes for your invention.
3. Allows Smooth Launching of Product
For newcomers, building a name in the market will take many years. Plus, the launch of your product would require a tremendous amount of investment. However, when you license your patent to an already well-established company, your product will smoothly enter the target market in less time.
4. Offers a Competitive Edge in the Market
Launching a product through an already established source gives you a competitive advantage. Moreover, if the party you chose is a comprehensive distributor, chances are your product will seize a large portion of the market.
As a result, the product will create its name quickly over time, benefitting you in the long run. This will help you gain attention as a leading inventor and bring in more money.
5. Makes it Easier for the Product to Enter International Markets
An individual can’t single-handedly step into a foreign market and make the product successful. It would take lots of time, patience, and money. However, when you license a patent to a big name, you can utilize its links with other firms to help your product reach a bigger audience.
The advantages of why you should license patents are more than you can imagine. However, we hope these are enough reasons to convince you why it is a good option.