Licensing Your Invention - How You Can Earn Hefty Royalty By Licensing Ideas





A great idea is nothing more than a useless effort if it can’t help in uplifting millions of life and If it’s creator can’t harness the idea of financial potentiality.
No matter how original and profitable your idea is if you don’t protect your idea, someone else will take its credit sooner or later. Most of the creators face two major problems in the road of converting their ideas potentiality into actuality: lack of funds and insufficient knowledge of the manufacturing process.

However, there is one efficacious way that will propel you to keep on spitting new ideas without quitting your regular job and i.e licensing your invention.

What is The Actual Meaning of Licensing Your Invention?

In the layman terms, licensing your invention means renting your idea or better called intellectual property to someone else. Here, intellectual property could be a scientific invention, a trademark, a patent, an algorithm, and the list go on.
When an inventor license his/her idea with the licensee (aka partnering company) the company acquires all the rights to manufacture and market the idea of the inventor in return of the profit sharing. In this way, everyone earns a gargantuan amount of profit. The partnering company makes its profit and the inventor earns loads of royalty.

Types of Inventions That Can Be Licensed Easily

Every investor wants to get his idea licensed but only a handful of individuals know which intellectual property can be licensed seamlessly. Before you make any step in licensing your invention, the first and the foremost thing you should take care of is the product category that fits your license well. Obviously, you can’t license software technology to an automobile parts category.

Those intellectual properties who falls perfectly in the company’s existing products line can be licensed with the utmost ease.

How to Find the Right Licensee to License Your Invention? What is the Role of Licensing Agent?

Finding the right licensee on your own is quite a strenuous task. You may land up with the best licensee but it will gobble up a lot of your valuable time.
The best way to bring the perfect licensee on board is to hire a licensing agent. Now, you must be wondering who in the earth a licensing agent and how he can help you out in licensing your precious invention?

A licensing the agent is an intellectual property licensing specialist who has great contacts in specific or varied industries. With his professional relationships in the industries, a licensing agent can help you in putting your invention in front of a licensee. Not only a licensing agent helps you in presenting your idea in front of the licensee but you get the best bang for your idea.

A licensing the agent will shortlist the top-notch companies that fit your idea’s category and call each company to set up your meeting with licensees. He/she will help you in preparing a well-structured presentation of your intellectual property and open the doors of opportunities for you.

When your idea is accepted by the licensee, the agent will help you in exchanging the non-disclosure agreements with the company which encompasses all the clauses on which you and the partnering company have agreed upon.

The Scenario of Royalty Payment

How much royalty you garner on licensing your idea entirely depends upon the partnering company mass production and strong distribution channels. The more is the production and distribution of your intellectual property, more you will receive the royalty and vice-versa.

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