Congratulations! You’ve invented something remarkable. Maybe it’s a new gadget that solves a common problem, a revolutionary piece of software, or a groundbreaking process that could change an entire industry. But now what? How do you turn your invention into a lucrative opportunity?
For many inventors, the idea of selling their creation can be daunting. Marketing, manufacturing, and selling may not be your forte, and you’re likely more interested in continuing to innovate rather than focusing on sales tactics.
Thankfully, building a business isn’t your only option. Let’s explore the next steps you can take to monetize your invention, starting with the crucial role patents play in protecting your idea.
What is a Patent and How Does it Help You?
A patent is a legal document that grants you exclusive rights to your invention, preventing others from making, using, or selling it without your permission. It’s essentially your ticket to safeguarding your intellectual property and maximizing its value in the marketplace. Without a patent, your invention is vulnerable to being copied or exploited by competitors, potentially undermining your ability to profit from your hard work.
Patent Process and Protecting Your Idea
Before you can sell or license your invention, it’s essential to protect it with a patent. This involves navigating the patent application process, which can be complex and time-consuming. Working with experienced intellectual property attorneys, such as Beusse Sanks, can help ensure that your patent application is drafted correctly and submitted promptly, increasing your chances of securing patent protection for your invention.
Two Options for Selling Your Invention
When it comes to selling your patent-protected invention, you have two primary options: outright sale or licensing.
- Outright Sale: With an outright sale of a patent, you transfer ownership of your invention to another party in exchange for a lump sum payment. This option provides immediate cash flow but relinquishes your control over the invention.
- Licensing: Licensing involves granting someone else the right to use your invention in exchange for royalties or licensing fees. This allows you to retain ownership of your invention while still profiting from its commercialization.
When you license a patent, you’re granting specific rights to the buyer, permitting them to utilize your invention in their business under certain conditions. The terms of the License Agreement are customized based on the type of patent you’re selling and the industry involved. This agreement will outline the terms and conditions of the license, including royalty rates, payment schedules, and other profitable agreements based on how the idea generates revenues.
Since each agreement varies and must address the unique needs of both parties, it’s essential to enlist the help of a lawyer during the drafting phase. Unless you’re a seasoned intellectual property attorney, navigating this process alone can pose significant risks.
Patent Considerations
Not every invention qualifies for a patent. Certain categories, such as mathematical formulas, natural laws, newly discovered substances found in nature, and purely theoretical concepts like scientific principles, are deemed unpatentable as they are considered an abstract idea.
To obtain a patent, your invention must meet specific criteria. Under U.S. law, there are various types of patents, each with its own set of requirements. It’s crucial to ensure that your invention aligns with one of these types to be eligible for patent protection. Considering the complexity of patent law and the nuances involved in determining patentability, seeking assistance from a qualified patent lawyer is highly advisable.
How Can I License or Commercialize My Invention?
To license or commercialize your invention, you’ll need to find potential partners or buyers who are interested in bringing your invention to market. This could involve reaching out to companies in your industry, attending trade shows or networking events, or working with a licensing agent who specializes in connecting inventors with potential licensees.
A license can either be exclusive, meaning only one manufacturer is authorized to develop the invention, or non-exclusive, allowing multiple manufacturers to develop it. The duration of the license should be a shorter period than the term of the patent. Additionally, the territorial scope is typically restricted to the geographic coverage of the patent. For instance, if the patent is from the U.S., the owner can license rights within the U.S. but cannot extend beyond that territory.
We’re here to support your ideas
Most inventors prioritize invention over running a business. However, business owners should consider the patent as a means to an end which is having a successful business. Typically, an inventor patents their creation and collaborates with an established company or companies to handle its development and marketing. This collaboration commonly involves a licensing agreement, as previously mentioned, where the developer gains permission to commercially utilize the invention in exchange for paying royalties to the patent owner.
Whether it’s expanding your product line, negotiating additional licensing agreements, or defending your patent rights against infringement, Beusse Sanks is here to support you every step of the way. Our team of experienced intellectual property attorneys can provide guidance and assistance to help you navigate the complexities of the marketplace and maximize the value of your inventions.
Selling or licensing your invention can be a rewarding journey filled with opportunities for growth and success. By taking the necessary steps to protect and commercialize your invention, you can turn your innovative ideas into tangible assets that generate value for years to come. Contact Beusse Sanks today and let us help you bring your inventions to life.
