In addition to certain guarantees provided by law, LegalZoom guarantees your satisfaction with our services and support. Because our company was created by experienced attorneys, we strive to be the best legal document service on the web. If you are not satisfied with our services, please contact us immediately and we will correct the situation, provide a refund or offer credit that can be used for future LegalZoom orders. A patent is an important document which companies make money from patents ownership to an invention. However, simply owning a patent won’t generate a dime for the inventor. To profit from your idea, you must sell the patent, license usage rights, or market the product. Months—or years—of tinkering and experimenting have turned your idea into a viable product.
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A registration of patent provides an exclusive right granted to the inventor, to exclude others from using their invention of new product or process, in any manner without their permission. Given that the inventor or patent holder spends a considerable amount of time and resources on creating a new and unique product or process, it only makes sense they and solely themselves profit from the patented invention. It requires a bit more work before you could start making money from that piece of paper sealed by the patent office of that particular country. Five effective and popular ways that would help you make money from your patents. Join us as we take a brief look at each of these ways and then we would leave you to decide which approach works for you the best. The easiest and basic manner in which the legal document aka patent can be turned into a financial asset is by producing the invention and selling it in the market. In other words, if you only create a prototype and file a patent, then it does not mean financial gains. The commercial value of a patent can only be obtained once the product is created for selling in the market. Now before you get all excited and get started, it is important to ask oneself a few questions before going ahead with the manufacturing process —. Unless you have millions to spare on failed experiments, it is always better to make an informed decision especially when it comes to product planning and development. With that being said, let us take an example that would help demonstrate each of these ways in which you could make profits from your patents.
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Once the patent is granted, he must then ensure that all key elements of the patent are imbibed while mass-producing the product. He must also ensure that this new product is marketed properly so that he is able to avail the commercial benefits of the new invention. It basically is a package deal, where one part which is free is bundled with the paid component, which must be bought for complete usage. This benefits in ensuring that the customer of one component buys the other one as well. It increases the customer base and aids in marketing. What is the next possible solution to ensure that the patent is transformed into a financial asset? The patent is his own intellectual property. The licensor may grant exclusive or non-exclusive rights to the licensee in consideration for a royalty, who can then manufacture and sell the product as his own.
2. License your patent
Are you an inventor looking for a way to monetize your patented idea? Follow me as we discuss various companies that buy patents or offers a platform for the same. More often than not, new inventors find themselves in situations where they want to sell their ideas. Well, we will explore deeper into various companies that buy patents so as to give you a wider scope when you think of selling a patent. And for this reason, this list of companies that sell patents intends to show you just how you can make money with that idea you have. Finding an ideal market place to sell your patent can sometimes be very frustrating.
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Patent monetization refers to the generation of revenue or the attempt to generate revenue by a person or company by selling or licensing the patents it owns. According to a survey of patent owners at the European Patent Office , about half of small and medium-sized enterprises SMEs take patents for monetary reasons. Some of these owners try to make money from patents on inventions they develop, manufacture or market. Others attempt to generate revenue by buying and enforcing patents against one or more alleged infringers in a manner considered by the target or observers as unduly aggressive or opportunistic, often with no intention to further develop, manufacture or market the patented invention. The latter group is pejoratively called patent trolls by their critics.
We will process your request within 5 business days after we’ve received all of the documents and materials sent to you. Look around for patent filing companies you can afford to hire. LegalZoom gladly provides services to citizens of the EU wishing to start a business or protect their intellectual property in the United States. Plant patent. According to a survey of patent owners at the European Patent Office , about half of small and medium-sized enterprises SMEs take patents for monetary reasons. Similarly, LegalZoom does not guarantee the results or outcomes of the services rendered by our legal plan attorneys or attorney-assisted products. You need to have a patent in hand or pending before approaching manufacturers. However, those profits may be eaten up by legal and accounting fees, business start up costs, and headache medicine. Building a prototype is essential to enlisting the services of a high-powered patent services company.
1. Start a business: Product conversion
Already answered Patenfs a question Bad question Other. Cookies make wikiHow better. Include your email address to get a message when this question is answered. Field-of-use limitation Higher category: PatentsPatent law. By continuing to use our site, you agree to our cookie policy. A patent is an important document which grants ownership to an invention. However, it also means that more people are trying. Look around for patent filing companies you can afford to hire.
Patent Commercialization: 5 Ways to Make Money From Your Patents
In addition to certain guarantees provided by law, LegalZoom guarantees your satisfaction with our services and support. Because our company was created by experienced attorneys, we strive to be the best legal document service on the web. If you are not monney with our services, please contact mnoey immediately and we will correct the situation, provide a refund or offer credit that can be used for future LegalZoom orders.
A patent is an important document which grants ownership to an invention. However, simply owning a patent won’t generate a dime for the inventor.
To profit from your idea, you must sell the patent, license usage rights, or market the product. Months—or years—of tinkering and experimenting have turned your idea into a viable product. A successful patent search and patent application fees have resulted in you getting a patent for your invention. Now what? When you sell a patent, you are guaranteed a quick payoff for your idea. Thousands of inventions are patented each year but only a minuscule amount actually generate substantial, if any, profits.
Some languish so long that their patent expires. By selling a patent outright, you at least gain some financial reward for your invention. Selling a patent allows the inventor to generate income that will help pay the bills or finance other promising ideas. Selling a patent outright also eliminates the huge financial outlay required to start up a business based on a new product. Although a quick, hassle-free payoff sounds enticing, by selling the patent the inventor gives up the right to future profits from his or her creation.
In addition, the money earned from selling a patent may not be substantial unless the product has been on the market for a long time. The patent buyer usually won’t want to spend a lot for an unproven product that might not generate a big profits.
But what if the product does becomes a hit? Deciding on an outright sale of your mxke depends on the invention. Is it an innovative idea that will revolutionize an industry? Or are there similar products already on the market? Licensing the right to make, use, or sell your product is usually the most profitable route for inventors. As patent holder, you retain ownership of the invention and earn royalty payments on future sales of the product.
You can grant an exclusive license to one company or several companies. Your invention stands a better chance of generating big bucks if licensed through a well-known company that already has the consumers’ confidence.
In addition, the licensee assumes liability for any product mishaps. Like selling a patent, licensing usage rights is no guarantee of financial riches. Maake the product fizzles in the marketplace, so will your royalty checks. Relationships with a licensee can go bad, thus costing you more legal fees and headaches. Before signing over licensing rights, research the potential licensee and contact inventors’ organizations such as United Inventors Association.
If you make and market your invention yourself, mske the profits will go to your bank account. However, those profits may be eaten up by legal and accounting fees, business start up costs, and headache medicine. Most inventors make lousy business folk. Unless your invention requires scant start up capital and you are well-versed in business bureaucracy, it is probably wiser to sell your patent or license usage rights. Be professional with your marketing efforts.
Prepare formal letters and nice looking brochures to showcase your invention. It also helps to have a prototype or at least a good drawing of the product. Direct Contact: Make a list of manufacturers and mney users of your invention.
The Thomas Register, available in libraries and online, has contact information for thousands of companies. The Yellow Pages and Internet are also good research tools. When making contact with a firm, present yourself as a Product Developer, not an inventor. Request a face-to-face meeting with a Sales or Product Manager in the company.
This option is only advisable once you have actually secured a patent. Otherwise, you must ask the company to sign a non-disclosure agreement before discussing your idea. Trade Shows: Attend trade or invention shows where you will encounter companies or individuals interested in your product. Advertise: Buy space for new product announcements in trade publications and inventors’ magazines to generate potential patent buyers.
Venture Capital: Finance your invention patentx soliciting partners to provide capital required to launch the product. Patent Website: Several companies have sites on the Internet where inventors can advertise their patents for sale.
Some sites are free while others charge a fee if the patent is sold. Before posting your invention anywhere, check out the United Inventors Association website which has news on unscrupulous invention schemes. Brokers and Submission Companies: A contingent fee broker will market your invention to manufacturers and receive payment for services if the product is sold, typically in the form of a percentage of royalties or cut of the sale.
Never pay a broker in advance for his services. Reputable agents will only charge you if they companiez your invention. Beware of invention submission companies. There are lists of inventors who have paid thousands of dollars to these companies and have nothing to show for it but an empty wallet and broken dreams.
Many cojpanies these companies have been charged with fraud by Attorney General offices in various states and by the federal government. Before using the services of any broker or company that offers to market your invention, check them out through the Better Business Bureau and United Inventors Association.
With good research and a viable product, you just may be able to turn that patent into a moneymaker. If you need legal advice about your patent, LegalZoom makes it easy and affordable. Our legal plan allows you to consult with a network of independent attorneys about your patent, business, or other legal matters.
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Updated April 13, Welcome back Finish your LLC. Check order status Dashboard Sign. Pafents would you like to talk about? Legal plans Browse attorney directory Legal document review Speak with an attorney. Check order status Contact us Visit our resource center. Check order status Dashboard Sign out Sign in. Take the Money and Run When you sell a patent, you are guaranteed a quick payoff for your idea.
Licensing Rights Licensing the right to make, use, or sell your product is usually the most profitable route for inventors. Self Help If you make and market your invention yourself, all the profits will go to your bank account.
Selling or Licensing Options Be professional with your marketing efforts.
How to Make Money off Your Invention — Chicago Patent Attorney Rich Beem
You had a great idea for an invention, and after spending months brainstorming, filing, waiting and discussing the details with your patent attorney, your patent is granted. The value of your invention is completely in your hands. One of the best ways to make money from your patent is to create and sell the product you invented.
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Keep in mind that developing and selling a product— starting a business —requires different skills than creating a product idea and going through the patenting process. There are plenty of independent inventors that have chosen to travel the path of entrepreneurship. Patent licensing is a practice that lets you transfer your patent rights to a party that can use it for making or selling a product or service. Patent licensing as a number of complexities and intricacies. It will help you start developing solid understanding of what it entails, including scenarios where licensing may become less profitable than your initial expectations. Often these companies serve as a middleman, connecting an inventor with a company that could help them with expertise or capital. Acacia Research Corporation, based in Newport Beach, has been one of the biggest supporters of individual inventors and small companies. They work with patent-holders to help them unlock the financial potential of their patent. Intellectual Ventures is another such company. It acquires patents from almost every domain. It has more than 40, patents in its portfolio. Inventors should get rich. We should have more inventors. Did you know that sometimes you can use your patent as collateral when seeking a bank loan? You might be surprised that this is a fairly common practice and something even major players like General Motors, Alcatel Lucent, and Kodak have .
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