If you want to make money off of your invention without producing and marketing it yourself, you have two options.If you assign your ownership rights in the patent to someone else, you can sell it.You can license the rights to do certain things, such as distribute or manufacture, your invention.Even if the license is exclusive, you are still the owner of the patent.
Step 1: Evaluate the market for your invention.
If you want to sell your product to the public, you need to figure out how much investment you will have to make.You can make a quick profit off of your idea by selling your patent to another company, and you can use the money to finance a new invention.If you assign your patent, you lose your right to future profits.If you assign your product and it becomes a big hit, you risk losing out on profits for a while.Take the time to assess your strengths and weaknesses.If you want to make money off of your invention, you should assign your patent to someone who is strong in those areas if you have few business or marketing skills.It takes a lot of time, effort, and cash to make a product.You could end up in the red for a long time if you don't have the resources to produce and distribute your product.
Step 2: There is a patent for sale.
Potential buyers can be reached through online marketplaces and trade shows.You can find manufacturers and distributors by looking at similar products in magazines.You can use the Thomas Register to find companies that manufacture or distribute products like yours.If you want to advertise your patent for sale, you should buy space for a product announcement in a trade magazine.
Step 3: Consider using a third party.
If you don't have many connections in the industry, you may benefit from using a broker or web service to market your patent.Once the patent is sold, the broker will take a percentage of royalties for their services.
Step 4: Get in touch with potential buyers.
Let interested parties know your asking price and business projections.If you want to sell your patent, you should send targeted marketing letters to companies you think might be interested in your product.
Step 5: The terms of your patent assignment should be negotiated.
You can begin negotiations after you have decided which buyer you're going to go with.Full assignments that transfer 100 percent of an ownership interest in a patent are common, but only a portion of the ownership can be transferred.If a patent is owned by two people, one of them can assign 100 percent of their ownership interest to someone else.50 percent of the patent's ownership interest is represented by this ownership interests.There can be partial assignments.If you assign a quarter of your interest to a buyer, you'll have three-quarters interest.You could either keep them for yourself or sell them to someone else.The patent owner can decide how much interest is sold.
Step 6: You should draft your agreement.
The initial terms should be written up and sent back to the buyer.You could hire a patent attorney to draft a full assignment of your patent to make sure the agreement complies with federal law.If you are selling or transferring patent rights, some states have laws that need to be observed.All written documents relating to your patent should include the name of the inventor and the official title of your invention.If this information isn't included, your assignment could be invalid.You can find sample patent assignment agreements online.
Step 7: Your patent assignment is to be executed in front of a public official.
When you have a final agreement, you should meet with your buyer to sign it.
Step 8: The assignment should be recorded with the USPTO.
Your assignment must be recorded with the US Patent and Trademark Office.The patent cannot be sold to anyone else if you don't record an assignment within three months of its effective date.There are two ways to record an assignment.Legal public notice of the assignment is provided by recording it with the USPTO.Recording the assignment in the patent file allows the new owner to take action in a patent proceeding.All assignment documents have to be written in English.If your assignment is written in another language, it must be accompanied by an English translation.The assignment must be submitted with a cover sheet and a fee to Mail Stop Recording Services, Director of the United States Patent and Trademark Office.Box 1450 is in Alexandria, VA.The originals will not be returned, so don't send them to the USPTO.Make sure you include the official cover sheet for the assignment documents.
Step 9: You need to decide what kind of help you need.
Licensing transfers less than a full ownership interest in your patent may be limited by time, geographical area, or field of use.You may be able to distribute your product in North America, but need assistance to sell it in Asia.If you wanted to grant someone an exclusive license to market and distribute your product in Asia, you wouldn't have to sell your patent.Licensing is the more profitable route because you retain ownership and control over the patent.
Step 10: It's a good idea to advertise to potential licensees.
You can use trade shows to let people in the industry know about your invention.If you pay a fee, you can get a notice that your patent is available for license.If you license your invention to an established company that already has good brand recognition, it will have a better chance of taking off.
Step 11: The terms of your deal should be negotiated.
Make sure that the licensing deal is beneficial to you before you sign it.If the license agreement will benefit you, you might want to consult a patent attorney or business advisor.You want to know if the license will be exclusive or non-exclusive.If you grant the licensee sole rights to take a particular action regarding your patented invention, you are granting them exclusive rights.
Step 12: Take the time to draft your agreement.
When you grant a patent license, you agree that the licensee won't be sued if they operate within the limitations of the license.No form is required for a license.Whatever you want, the terms can be styled as you please.If you want to draft your agreement, consider hiring an intellectual property.Licensing agreements can be difficult to understand and can result in a significant loss to you.Provisions for advance payments and royalty percentages are important.Since you remain the owner of the patent, your licensee needs to know that he can count on you to file a lawsuit if there is an unauthorized third party in his territory.A contractual way of giving the licensee incentive to market and distribute your product is yearly minimum payments.You should include the ability to have an accounting firm perform audits to make sure you are getting the royalties due to you.If you want to reserve your ability to practice certain patent rights, for example to make limited quantities of your product for research purposes, make sure that's carved out in writing in your licensing agreement.
Step 13: You should execute your agreement.
You should get together with your licensee to sign the agreement after you have agreed on the terms and conditions of the license.Unlike an assignment, a license doesn't have to be recorded with the US Patent and Trademark Office.