Licensing your inventions can be an exciting alternative to going into business. It's usually the best way to defray the high cost of development, manufacturing and marketing.

Licensing is one of the primary strategies successful inventors use to secure development income. It is frequently the fastest way to earn profits and to get an innovation launched.

What is a license?
Simply stated, patents give you the exclusive right to manufacture, use and sell products falling under the scope of the patent. In turn, a license conveys those rights to others. A patent owner who conveys those rights is called the licensor. The company receiving the rights is the licensee. The agreement between the parties is called a license.

Licensing income is referred to as royalties. There are many variables determining royalty rates, such as the strength of the patents and the sales potential of the invention.

The basic elements of a License agreement are:

  1. You grant a licensee for the rights to manufacture, use and sell products falling under the scope of your patents and intellectual property.
  2. The licensee pays you royalties.
  3. The licensee must actively promote your invention else its rights are terminated.
  4. You are protected against any claims by third parties resulting from the licensee's use of the patents.
  5. Records are kept by the licensee which you may review.

There are many additional elements that may be in a license agreement based on your invention and licensing strategy. Don't be naive and think that your licensees will be beating a path to your door and that you can send out "any old agreement" for them to sign. They really have to be tailored to your specific needs with much thought and consideration.

One other important factor to consider is that companies interested in licensing your patents will want to deal directly with you and not through an invention promotion company or your attorney. Besides, using an attorney could easily cost $20,000 or more. Learn all you can before you start and save a small fortune.

 

Licensing insight:
Licensing is common throughout industry, from the software you use to hi-tech processes in industry. From Patent to Profit takes you through all the steps in layperson terms you can understand.

Picture of Nostradamus

We are pleased to see you visit our website. We hope you find the information on these web pages valuable to your innovative efforts.

We've been helping inventors for over ten years and believe we know what we're talking about. Evidently the US Government, some prominent companies and patent attorneys think so too.

You'll read about these companies and government agencies and why they support and sponsor our effort. In a nutshell, we have helped hundreds of inventors and small businesses just like you launch, market, license and profit from their innovations.

Sound good so far? Keep reading.

Experienced inventors know you can protect your ideas free, design and prototype your inventions for a few dollars, file patent applications for $100, and build your own profitable marketing relationships. In contrast, many inexperienced inventors spend countless millions on invention promotion companies for an array of worthless marketing reports, unqualified product design and prototyping, weak patents and bogus "exposure to industry". It's a $90 million a year scam.

But just like savvy inventors, you can have partners pay you instead! You'll learn how right here on this web site. Actually, you've already started, since now you know what not to do.

Peruse these web pages and you'll save thousands of dollars and years of development time. We're going to show you the systems and methods used by expert innovators. You will also be able to get qualified advice from some of the nation's leading experts in innovation. Your cost? Zero. Keep reading.

 

OUR FEATURED SPONSOR

LICENSING
INVENTIONS