Licensing Patent Rights
An inventor (licensor) may license pending or granted patent rights to a manufacturer (licensee).
This is very common especially for independent inventors. The inventor does not lose his/her patent rights, but merely allows the manufacturer to be protected under the inventors patent protection status through a licensing contract. In return, the inventor receives an up-front licensing fee and payments (royalties) based upon actual sales of protected products.
Most licensing contracts are completed during the patent pending period. That is to say, the deal is negotiated based on the pending patent, taking into account its likelihood of issuance and other issues. Thus, it is important to initiate your search for an appropriate manufacturer immediately after filing your patent application.
Key negotiable issues include:
- licensing fee
- royalty amount
- exclusivity
- minimum royalty guarantee
- term of contract
Our Invention Licensing Action Kit provides you with a step-by-step guide to finding the most likely manufacturers, offering your invention to them, interpreting their responses, early stage business discussions, and how & when to bring in your, or our recommended, attorney.