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Invention Help Overview
the entire step-
manufacture vs licensing
what it is, how it works
By licensing your patent (in effect licensing the invention which is protected by
your patent) you assign the legal right to a company to use your patent to manufacture
and SELL your invention for you in return for payments in the form of royalties.
However, it is crucial to find the RIGHT company (or companies) to license your patent to, because you must find a licensee who will produce, design, package, and enthusiastically market and pro-
Put simply, with patent licensing the licensee does the hard work, and you get the reward. Of course, both sides benefit when things go well. The licenses makes a healthy profit, and you get a healthy royalty reward. And if you know how to select the
The right licensee will manufacture your invention while paying for any special tooling needed for the machinery, handle quality control, design the packaging, and robustly promote your invention usually through their existing sales channels, and most importantly of all SELL it! The more they sell … the more royalties you get!
But what makes a good patent licensee? To get on your short-
Trade magazines, trade show exhibitions and online research ... will all help you to identify likely licensee candidates.
There are two main types of licensing contract -
With an exclusive invention licensing deal you contract to license your patent to
ONE company -
However you can still have several exclusive licensees, because the exclusivity can be for a geographical territory or even a specific vertical market application of your invention patent. For example, you could have an exclusive deal with Company A for North America, Company B for the Far East and Company C for Europe.
With a non-
So which is best? Like so many areas of life, the answer is not straight forward!
At first glance, it might seem a no-
Actually not necessarily!
First off, if you license your invention to several licensees who all market your invention into the same market, two things happen: First, competition tends to drive down price (read
Remember, you can still have several exclusive licensees -
Additionally, exclusive deals offer the opportunity to negotiate higher patent royalty rates. After all, you are enabling a unique competitive advantage for your licensee as their competition won’t have your invention.
In the end then, there is no absolute right or wrong way to go. It will be different
for different inventions and different markets.
However, to get the maximum profit from patent licensing, you must consider this topic most carefully. And in order to do so you will need a greater understanding of how patent royalties work, and how much you can realistically negotiate!
|list of the free stuff|
|manufacturing vs licensing|
|how to get a patent|
|patent license agreements|
|new invention ideas|
|invention submission corporations|
|non disclosure agreements|
|Case 1 - Annual $multi-million royalties|
|Case 2 - Microsoft acquisition approach|
|Patent Licensing Service|