share this article: facebook

License and Sell Inventions

      Introduction to Licensing

      Licensing is the easiest path to commercialization and profit: you get paid while someone else takes your invention, turns it into a product and manages the day to day grind of making and selling it.

      When you give a company the right to make and sell your invention in return for payment, you are granting a license - you are the "licensor" the company is the "licensee". The payment can be an ongoing percentage of sales, a "royalty", or it can be a one-time payment, a "buyout".

      The downsides to licensing are lack of control and a smaller share of profits. The upsides are less work, less investment and less risk. If you want to maximize the potential return from your invention AND you are willing to work extraordinarily hard AND you have the ability to build and manage a business… then licensing might not be the right solution for you. For everyone else it's a path worth serious consideration.

      Many inventors harbor the fantasy that someone will pay for an undeveloped idea. While fantasies sometimes come true (someone does win the lottery), you should keep your feet planted firmly in reality. Fortune 500 corporations will only license patented (or patent pending) inventions. Smaller companies are more flexible but also have a strong preference for ideas that are developed and possess some form of intellectual property protection.

      The steps to licensing an invention are as follows:

      1. Identify & research target companies
      2. Approach prime targets
      3. Confidentiality agreement
      4. Prepare for negotiation
      5. Initial presentation
      6. Negotiate
      7. Marriage

      Learn About Licensing

      • Inventing 102 - Learn how to license your invention. Read about WorkTools deal with Black & Decker.
      • Money & Inventing - Invention City Article - How much is your invention worth to potential licensees? This article provides a framework for understanding the value of your invention. Don't sell yourself short and blow a deal because you are unrealistic.
      • The Disclosure Dilemma - Invention City Article - The Catch-22 of Inventing. You need to talk about the invention to move it forward. How do you do that without giving away the store?


      Opportunities




      • Invention City Submission - Invention City licenses and represents inventions in a wide range of categories, including, but not limited to, Hardware, Software, Apps, Housewares, Office Products, Garden, Pets, Babies, Sporting Goods, Clothing, Transportation, Agriculture, Hunting, Fishing, Camping, Medical and Dental, Health and Beauty, Exercise, Education, Personal Care, Food and Beverages and more. See some of the projects Invention City is currently working on here. The first step to working with Invention City is a Brutally Honest Review. Honest, fast and informative, the Invention City submission process is a fantastic way to get professional feedback on your invention. You might be offered a rev-share deal to take your invention forward at no additional cost to you.

      share this article: facebook COMMENTS

      Patent# 6551197 appl 10053122

      I want to sell this putting device patent

      by: Chris Travo

      Great info

      Thanks for this distinction between licensing and selling. Great information

      by: Ela

      ...

      hi , I have an invention about make electricity without any energy usage , I want to sell it ... can any one help me ?????

      by: pooya

      store not invention

      I have an idea that will affect how we use storage on a cell phone. No longer wil apps drain storage

      by: shar

      1 electric power source multiply to 3 times electric power supply.

      hi, I have a theory and not yet invented before, an energy source from one place to another will multiply into 3 source of energy that has enough power to lighten-up 3 big city and low maintenance to sustain energy source.. if there is any investor interested to support me and my theory this is your fortune..

      by: code name: MTD

      Bath Time Bumper Guard

      I have the next big invention it is the " Bath Time Bumper Guard " My bumper guards products toddler and the elderly From getting hurt in the bath tub if a person false in the bath tub the padding would absorb the fall. I came up with this invention when my grandson who is two years old slipped in the bath tub he ended up in the emergency room. I'm looking for a manufacturer to make my product. My product is a safety product For all ages.

      by: Brenda Dillingham

      radio girl

      I have a idea for a new software game and app so im looking for advise on who to approch and how without giving too much of my idea away.

      by: Victoria Hallam

      retractable car cover

      the patent number is 126552 from 28/12/2012, i want to sell or find someone to invest in this patent,

      by: ovidu

      Domingo R Bonilla

      i have an invention in the electronic device and my invention can be use for any age in the world and the market will be very strong according with the evaluation market study and searching, i have my patent pending and i am looking for investor to obtain the license and manufacturer, the company need to be a cellular phone manufacture to develop this product or any other in the same technology. Please email to me if your are interesting in develop and manufacturer my invention. Thank you, Domingo R Bonilla. Inventor

      by: DOMINGO R BONILLA, INVENTOR

      ANTI-CAR CRASH

      I inventin and system to improve the Safety of a car in the event of Frontal, Side and Row impact at high speed. I looking for an Company to develop it ! The system can be mounting on your personal car, by an Professional Garage. Chris tour_ro@yahoo.com

      by: PROCERRA