Creating & acquiring a patent is a very expensive process in terms of time as well as money. One must reap the fruits of their investment of resources, body and mind by commercializing their creations and leveraging it to further create and open new doors of opportunity. Commercializing a patent through licensing is an important part of the patent life cycle. EXCELON IP, the No.1 Patent Licensing Services can help you with innovative Patent Licensing Strategies for your Patent.
Patent Licensing Agreement
A patent grants exclusive rights to the patentee to restrain others from manufacturing, marketing, selling & using the invention if it is being used without their assent. Therefore, a patent shall be used by another person only when the patent owner consents to such use by the other person which is also called as patent licensing. A patent licensing agreement is basically a legal document which allows the patentee to exchange intellectual property, or patented technology (along with the manufacturing, marketing, selling or usage rights) with the other person for consideration of equal value as agreed between two parties. It can be a one-time lump-sum amount or most widely used royalty on revenue generated. The other person may have to agree with the condition of the patentee, if any, in order to get their hands on the patented invention. The license can be an exclusive or non-exclusive depending on the patentee.
Long back, during the 1990s apple invented an input and output connector (an ancient type of USB), the performance was not cutting edge yet they demanded high royalty fees from the other parties. This is a kind of licensing strategy which attempts to create a standard. According to this strategy the inventor of the company or corporation holding the IP asset benefits by removing barriers towards a sizable market acceptance. Licensing patents attempts to create a standard and widens the market for the invention at a global level.
Advantages of Patent Licensing
There are many advantages to licensing your invention at the right time. The primary intention of licensing a patent is to gain higher royalties. Sometimes the patentee doesn’t have the capital sufficient enough to make and sell the valuable invention, in such cases, instead of risking to run the market solely, you may minimize such risk and recover profits by transferring them to licensees.
Sometimes small things which are over sighted while licensing a patent!
Some of the inventions are really valuable and are capable of generating handsome amounts of money. If the patentee or the company knows about the value of their patent then they need to be pretty selective about the choice of their licensee. Usually, patent royalties are charged by the patentee or companies either in advance or annually. One must consider the rates of royalty based on diversified factors which may vary from industry to industry and product to product. So you should know the appropriate value of your patent and asking royalty. Also, the licensee is bound to fulfil some patent obligations and if the licensee fails to perform the necessary obligations, the patentee or the licensing company may choose to end the license at their wish. Yet another most crucial thing which the patent owner needs to address before licensing is that the patent owner is required to clearly state what he/she is willing to license and the no-go-zone for licensee needs to be clearly specified. Small thing matters. A qualified and experienced patent attorney can navigate you through the process of patent licensing meticulously.
EXCELON IP, one of the top Patent Licensing firms
Just like getting a patent grant, patent licensing is another big task which is required to be unequivocal and comprehensive. So whether it is for the licensee or the licensor, it is equally important for both parties to hire a qualified and experienced patent attorney. We are a team of experienced IP Professionals at Excelon IP who can help patentee or corporations or companies in handling their intellectual property assets in the most satisfying manner to extract out maximum commercial benefits from it.