IP-Academy

Patent Licensing

Once a patent is granted, it is the high time to finally make and sell your invention. However, patents are not always filed by corporations with unlimited resources that can invest in making, selling and what is also important - marketing. For independent inventors, licensing their patent is a good option for commercialisation.

By way of licensing, patent owners allow others to make, use or sell the patented product and receive royalties, i.e. fixed or otherwise set payments. The term, territory and conditions of such relationship are defined in the agreement between the licensor and the licensee. It is important to find a licensee that will be able to mass-produce your invention and take care of promotion because the amount of royalties often depends on the income received by the licensee.

Licensing in itself can be a very profitable business, especially if the patented invention is in high demand. The best example is the technology of wireless charging. Invented and patented by NuCurrent, once a start-up from the US, wireless charging technology is now used by Apple and Motorola that pay millions of dollars in royalties to NuCurrent. Another famous patent licensor is IBM Corp. that receives a great part of its revenue in the form of royalties paid by Amazon, Google, LinkedIn and Twitter.

All in all, don’t be afraid to use your patent to the fullest! Feel free to contact us for assistance.

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