First, you might wonder what patent licensing is. It is part of how to patent an idea and is the agreement between the owner and a licensee to transfer the interest in a patent to the licensee. The licensee then can benefit and enforce the rights of the patent.
The patent owner can transfer the interest in a patent but then will give up the right to the patent. This will usually occur for a certain period of time. At this time, the licensee can then make or sell the invention or design and can also make profit from the patent.
Not all inventors want to make or sell their products or designs. Patent licensing helps you profit from the rights to your invention. You are able to collect royalties from these sales.
You might also want to know what the advantages of patent licenses are. Manufacturing a product or design can definitely be expensive and also has a high level of risk. Patent licensing lets you transfer the risk to another party. Also, not all inventors are able to produce a product or design on a large scale. Patent licensing can help you introduce your invention to a larger market, which will also help with sales. Another great feature about patent licenses is that you don’t have to sign the way the rights to your invention right away. You can specify a time period in the license. When this time period expires, you regain the exclusive rights back. If someone infringes or takes your patent, you can sue but this can become very costly. Instead of suing, you might want to consider patent licensing instead. This would give the competitor the right to your patent but also gives you the right to profit from it.
You probably also want to know what some of the disadvantages of patent licensing are. As an owner of a patent, you might want to profit from it. Patent licensing might be part of your plan but you have to find a licensee or manufacturer first. Finding an interested licensee may be difficult and also negotiating the license to help you make money is also hard. There is always the possibility that you could end up being unsuccessful in this process.
It is always a good idea to discuss any ideas you may have with an attorney to make sure the process is a little easier for you and they can help you with the necessary steps to take.
