Steps Involved In Selling Patents To Companies

By Kenya England


For those with inventions, the best way to make money is to license other firms to manufacture and use your invention. Licensing is granting rights to use a certain invention or intellectual property after paying a fee. However, before selling, there are numerous factors to consider. All factors must be favorable. To be successful in selling patents to companies, consider the following factors.

The first thing to consider is the reputation of the company that you are selling the patents. Reputation shows that they will honor their agreement. If they do not honor, money and time will be wasted in court cases. Before selling to them, get advice from referees. These are customers and other company who has bought or sold patents to the firm. Learn if their agreement was executed in the right way. If it was, then it means that they will honor the agreement made.

Make sure to advertise that the invention is on sale. Since it is a sale, it is important to put the product out there. There are several marketplaces to list the item for the public to see. Another way to sell is to approach manufacturers and distributors who deal with similar products. There are different ways of advertising the product; you just have to find the right one.

The other factor to consider is the price. The price should be fair. Do not sell if you are not comfortable with the price. Conduct research to find out the worth of the product and its valuation. This will set a limit to the amount that can be accepted. There are professionals who can help with valuating of the invention. Negotiate with the interested party until you reach a favorable agreement.

Hire a lawyer to help with the sale. Sale of patents can be tricky for the inventor or owner. This is because they do not know what it takes to make a successful sale. A lawyer who deals with patent issues is well placed to offer advice on what to do. They will also do due diligence so that the buyer does not turn out to be a fraud. Engage the lawyer in all the details and let them draft the agreement for sale. Engaging a lawyer makes it safe to sell.

Consider the benefits that come with selling. Apart from cash, there are other benefits such as paid membership to exclusive clubs, ownership of stock and many more. Each firm will offer different deals so choose a firm based on the deals they place on the table.

Consider the selling options available. There are terms that come with sales of products especially for huge companies. For instance, you may have to sign a non-compete clause or be subjected to another condition. Whichever the condition, ensure that you are comfortable with it.

Selling an invention or licensing rights is not easy. It involves a lot of negotiation and paperwork. Learn about the party that is interested in buying the product. It will help in deciding if they are the right people to sell to.




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