7 Critical Steps to License or Sell Your Invention
What is licensing as it relates to inventions?
Licensing is basically renting your invention or product idea to company. You give them permission to market, and sell your idea for a percentage of the profits. You simply are giving a company permission to manufacture, distribute, and sell your product or idea. In exchange, the company pays you an advance and payments known as royalties. You are the licensor and the company is the licensee.
What does it mean to sell inventions?
Selling an invention is legally defined as an “assignment.” You assign your intellectual property to a company in exchange for compensation. The compensation can be a lump sum payment or a series of payments (monthly or quarterly over a fixed number of years).
Before approaching a company to license or sell your idea, you’ll need to do some homework.
Simple but Critical steps to sell or license.
Keep in mind, you often only have one chance to make a good first impression.
The important first 3 steps help you fine tune your idea before introducing your invention to a company.
- Market Evaluation – Start the process by evaluating the marketability of your invention. I can show you how to do this properly to save time and Money!
- Concept Evaluation-Evaluate the marketplace compared to your idea. I can show you exactly the proper steps.
- Prototype Evaluation – The third step is to create a concept, functional, or working prototype A prototype can be any physical model, detailed drawing, or animation.
- Protection – You need some form of idea protection. Start with a Provisional Patent Application for a year of “Patent-Pending” protection while you test the market to get a deal. I can show you how!
- Product Proposal – You will need and I can show you how to properly put together a professional product proposal Companies need to understand your invention from a business perspective.
- Company Search – Search for companies who make, market, and sell products that are comparable with your invention. Your goal is to locate sand establish contact with the key person or person to pitch your invention.
- Negotiate Deal – I will and be with you over the entire negotiation once you find a potential interested license. When the company likes your invention, I will help with terms such as royalties, guaranteed minimum annual royalties, field of use, territory, etc.
If you are ready to learn more, develop your product development business and have me help you and show you how to negotiate your best deal. Sign Up Today!
Your Important Next Step
Learn how to do this yourself as a professional Product Developer with me as your coach/mentor. Free yourself from any constraints and rise above the pack, and learn all you need to do this on your win and bring your product to market! Sign up Here!