Owning a patent is an incredibly valuable resource. However, owning the rights to a patent isn’t a guarantee that you will make money. Fortunately, there are a few ways that you can generate a profit from your idea.
After months or years of tinkering and experimenting, your idea has turned into a valuable product. But what do you do if you can’t move your new invention to the next step? Below are a few ways you can monetize your patent.
Sell the patent rights for your invention
The simplest way to monetize your intellectual property is to sell the patent outright. People patent thousands of inventions yearly, but most languish until the patent expires. Therefore, selling your patent may help you to at least gain some profit from your invention.
Just like any other business transaction, you’ll need to prepare for the sale. This means having all the relevant paperwork ready. However, finding a buyer is the most time-consuming part of selling a patent.
Here are a few ways you can find interested buyers:
- Contact companies in the relevant industry and give them a sale offer
- Attend trade shows
After finding a buyer, you will still need to prepare a Patent Sale Contract.
License your patent rights for others to use your invention
You can also secure a financial reward from your invention by licensing the right to make, use or sell your product. You can grant the license to your patent rights to a single entity or share between multiple entities. Because your relationship with the licensee can go bad, you’ll need to create a patent licensing contract between you and the entity that wishes to commercialize your invention.
If you’ve done your research and developed a viable product, you may be able to monetize your patent. But before selling or granting a license to others for your invention, consider seeking legal guidance to help you navigate the legal landscape and protect your rights.