How to License your invention

How to License your invention:

When you have a new idea, you do your research and apply for a patent. But what is the next step? Here’s what you need to know to make money from it.
·         What does license your invention mean:
A license is an agreement that grants the right to produce, manufacture, use and market your invention to another company or person. The inventor sells his/her intellectual property exclusively to someone else who has more financial or marketing capabilities. In exchange for this, the inventor receives money from the licensee (a person who purchased your invention). This can be done through either a large one-time payment or -usually- a small continuing payment also known as royalty. 
Inventors who don’t have the financial means of production prefer to sell their ideas and earn royalties. Although, in most cases, inventions purchased are covered by a patent; only in a few cases non-patented inventions are accepted. 
·         How to license your invention:
There are various profitable ways to license your invention. 
First of all, make sure your product is patented. Pending status products are often rejected by buyers. 
Secondly, find the right people to present your idea and make sure it is done appealingly. You can hire a marketing agent or mentors to help you find people and prepare your pitch to license your invention. You must present a presentation of your product describing its purpose and use it attractively. 
Then, develop and protect your idea in such a way that it can be licensed completely by the other party. You must draft a document where you specify your means of payment and do legal procedures to successfully sell your idea.
·         Finding a licensee
1.   The most crucial step to license your invention is to find a company which works in the same field. Narrowing down to specific features will help you find a licensee which works best in your favor. For eg, if you have a toy invention, it would be ideal to contact a toy manufacturing company. 
2.   You can visit nearby local stores or big chains to identify where your products can be sold. You can find potential buys at these places or investor shows.
3.   While you’re looking for products similar to yours, make note of different brands and manufacturers and distributors. These are the potential licensee which you can contact with your product. Remember to make a list of these names.
4.   Find out more about the companies you’re interested in. You can find information about their background, other product lines, and even their management. Contact them through their information available on their official website. 
5.   Remember to have all your documents ready along with your patent protection papers. The companies may ask for a non-disclosure agreement before moving further to licence your invention. 
6.   Prepare a presentation if needed to pitch an idea. Have a design model or drawing of your product as you will need to explain the uses and benefits of your invention.

                                                                              Multiple ways of marketing: 
1.   Agents- 
You can easily find marketing agents who specialize in marketing and will help license your invention. These agents already have a professional relationship and contact with the businesses you will target for the sale of your product. They often do not advertise their services to avoid fruitless inventions. Still, some of the best places to get in touch with these licensing agents are at trade shows or Inventor clubs in your area. These agents will help you find the best buyer and list every invention proposed and close the ideal deal. They are paid in percentages as well. 
2.   Publicity:
Hiring a publicist might be expensive. However, numerous ways of affordable publicity will do the job. Newspaper and magazine articles will help you connect to a manufacturer who’s looking to invest. Other forms can be radio announcements and social media which will help get the word out. 
3.   Exhibitions:
In the United States, you can find Inventors trade shows in your local area. Held on a large and small scale, these places are visited by marketing agents and people looking for new products. Not only can you find a business proposition but you also get feedback on your work before you license your invention.
·         How do royalty payments work?
Royalty payment is a percentage of the cost of the product. Mostly between 1 to 10%, the inventor receives a small percentage of each product sold. If you are selling your product, it would be crucial to find a licensee who does large scale production and has several distributing connections. Depending on which aspect of sale your idea will be used, it will be easier to decide the percentage expected. 
License your invention can be beneficial in the long run. After you’ve sold your product, the licensee takes all the business costs and risks, from manufacturing to marketing. They also stop other people who infringe on the product's patents. All you need to do is sit and wait for your royalty checks while you work on your next idea.

Location: Miami, FL, USA

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