Licensing Your Creation

Many inventors may also be business builders. After creating a stylish treatment for a genuine problem, they want to build a business that profits from that solution. However, don't assume all inventors want to build businesses. Some inventors tend to be focused on solving problems, and having solved one problem wish to proceed to the next. It is then hard for them to profit from their innovations. However, inventors can still profit from their innovations through licensing. Once you license your invention, somebody else builds the business and you also share with the profits.




Licensing could be your best strategy in the event the barriers to entry for products and services which use your invention are large. Licensing is also a good strategy in case your strengths and interests don't include building an organization.

Invent Early, License Later

A common technique of patent help companies is always to invent early after which license later. Inventors which use this tactic presciently discover the best methods to problems years before their peers. They declare and receive patent protection for inventions, and then wait.

Years later, businesses discover those solutions, and incorporate them to their services. Commonly a wide array of businesses and industries will adopt a solution, and customize it for their particular needs. However, they're still obligated to pay for the patent holder from the solution. The patent holder profits by owning the answer well before it's widely adopted.

Invent, Sell, License

Other inventors would rather actively promote the adoption and licensing of the innovations. They notice that you will find often multiple viable solutions to a problem, and seek to let the adoption of these solution.

The initial requirement within this technique is filing that least a provisional patent application. Otherwise, potential licensees can't be certain that you own the perfect solution is you might be selling them. Provisional patent applications are affordable to file for, but provide a year of protection to your idea as you explore its commercial viability.

The following requirement in actively licensing your invention is to develop a viable solution that may save the licensing party money, even though additionally they pay out. Actively licensed ideas have typically moved beyond the idea stage, and include prototypes and test data. Your licensee has to be able to see the way to quickly and profitably adopt your invention.

Finally, to make money from the licensing deal, you need a realistic valuation with the economic advantage of your invention. Without a convincing valuation, organizations are often unwilling to commit to appropriate royalties.