Selling Your Patent
Selling Your Patent
Selling your patent outright is a quick and easy way to exit with cash in hand. It is a “take the money and run” strategy, something one would do in recognition of the fact that thousands of patents produce no wealth and it is prudent to take the early payoff if one can get it. This reality cannot be stated enough. Most patents produce nothing; in fact, some inventors toil for so long trying to find a market for their idea that the patent expires! By selling a patent outright, you avoid this outcome and ensure that you gain at least some reward for your efforts.
Selling a patent is also an attractive option for serial inventors; that is, those who intend on developing many more ideas to patent and pursue. Anyone who does this knows that it is an expensive business. Supplies, living expenses, legal costs, and other items make the creative process a rewarding but costly endeavor. By selling a patent, you can generate some quick capital to pay these expenses and/or fund the development of other ideas. This way, your operations become more self-supporting as you rely less and less on savings or income from your day job.
That said, there are some potential drawbacks to selling. After all, if your patent protects a new or unproven idea, the patent buyer probably wont want to spend a ton of money for it. It would simply be too big a gamble. Then again, what if it becomes a huge hit? More concretely, what if you sell your patent for $10,000 and it generates $10,000,000 in profits for the new owner? This is a very real possibility that you must reckon with before selling. For many people, this possibility is enough to scare them (irrationally) into rejecting perfectly good offers and holding onto their patent indefinitely.
However, you can and should make this decision intelligently. Think long and hard about your idea. Is it so innovative, so groundbreaking, so over-the-top revolutionary that it is going to redefine an industry? Or are there similar products out there for sale already? In the former case, you might want to hold on to your idea or hold out for a higher sum. In the latter case, however, you should reason that you might make money or you might not. You should take the sure thing: ie, sell the patent if someone makes an offer.
(It is worth noting a potentially lucrative alternative to selling: licensing. Licensing your patent grants exploitation rights to a licensee in exchange for royalties and performance options to ensure the licensee acts to make the patent a success for you. For a more in-depth explanation of patent licensing, see our article on the subject.)
How do you actually go about selling your patent? Several options exist, and you should choose the one that best matches your strengths and resources.
One way to sell your patent is through direct contact. Very simply, you would make a list of manufacturers and potential users of your product. A good place to start is the Thomas Register, which is available in most public libraries and on the Internet. It has contact information for thousands of companies across hundreds of sectors. The Yellow Pages are another solid resources in this regard.
When you do make contact with a firm, you want to present yourself as a Product Developer, not a mere inventor. This exudes an air of professionalism that established companies prefer. Then, request a face-to-face meeting with a Sales Manager or Product Manager within the company. Now, a word of caution is in order. You only want to schedule such a meeting if and when you have secured a patent for your idea. Otherwise, you have to ask the company to sign Non-Disclosure Agreements which they are unlikely to sign for standard business reasons. Therefore, a patent is your best (and often, only) means of selling your patent through direct contact methods.
Another option is to attend trade or invention shows. Here, you will encounter companies or people interested in your product and potentially buying it. Generally, it helps to have secured a patent here as well, if only because it would be easy for an interested party to run with your idea him/herself.
If neither of these options suit you, you can also advertise in trade journals or inventors’ magazines to scout out potential buyers for your patent.
In closing, selling your patent is a potentially lucrative way of capitalizing from your invention. If you have secured the patent already, you are in prime position to market it to interested parties and evaluate potential buyers in your quest to profit from your labor.
Eric Corl is the Founder and CEO of IdeaBuyer.com, a marketplace for new technology and products that gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email him at EricCorl@IdeaBuyer.com. You can visit the site by clicking here > Patents for Sale.
January 4th, 2008 at 7:29 pm
Eric,
I read your article friday, printed on idea buyer. I have a patent , which I’m interested in selling. Can you give me a little more insight on how to begin. You seem to be quite knowledgible in this arena. Any assistance you can provide will bre greatly appreciated.
February 6th, 2008 at 9:05 am
I am so fortunate to have happened on to you. I see nothing but success, no pie in the sky promises or idle conversation, nor unsoliceted advice. However I may be asking for some shortly! You went right to work, and I am confident it shall pay off! Your Due Diligence was fast and it showed. I just may become your #1 Fan!! Thanx Eric. E. Morton
April 9th, 2008 at 9:15 am
hi ya i also have a some things that i came up with , i allready talk to this one company called, davision invention , but it kind of fell like there scaming me out of money and they want me to pay them 600.00 something i really dont have, but they want to use my product, but i did not give them my other invention so i would like to sell the ideal, if i could my email is Bponyi@yahoo.com
April 10th, 2008 at 12:37 pm
Hi, I have a patent I would like to sell, liscese, or bring to market. Can you help. Dennis
April 29th, 2008 at 2:17 pm
Hi, I am so glad I found this site to ask questions.
I have a patent that has 3 inventor names on it. The two names were the production guys thinking that with their names on, the product will see the sun easier. Now, question is I decide not to go for production since the money involved is just way too much. If I sell the patent what is my legal bottomline if the other guys really had no involvements to show? Do I have to get an ok from them and share 2/3 of the benefit derived in selling?
Thanks to all inputs.
Bill
July 4th, 2008 at 12:17 pm
In response to Bela, I also checked out Davison Invention and was really skeptical of the conversations with them, searched them on the USPTO’s complaint list…there were many. Some real sad stories about people who literally lost lots of money and thier idea stolen by them. This is why ANYONE who is looking to market thier idea must research the company.
This is why I’m so glad I found IdeaBuyer. I would hope anyone seeking to list thier product go with them. Just get on the IdeaBuyer site and look at how and what they can do..there is so much info you can self-teach yourself so much about the invention marketing process…you won’t need to go anywhere else.
IdeaBuyer member,
Michael McCullough
August 19th, 2008 at 10:12 am
I am in search for manufacturers who would be interested in out licensing or buying my patented idea. Your assistance is much appreciated.
September 20th, 2008 at 8:22 pm
I have invented a painters tool wich I’m trying to sell. I also have a prototype of it .Please inform me of the cost for your service till I reach a buyer and sell my idea as you don’t mention any fees for your service Thank you
December 14th, 2008 at 5:21 am
Hi, I have a provisional on an easy-to-implement patent. Is it enough for setting up a meeting with a major company (in my case mobile phone company)? I want to sell it and ready to do so with a condition that the provisional will become a patent.
December 17th, 2008 at 5:58 pm
I want to sell my patent. Where do I go from here.
April 15th, 2009 at 1:03 pm
I have created some articles and foresee widespread distribution. Am an independent with license.
May 1st, 2009 at 10:34 pm
… I DEVELOPED A DEVICE THAT CAN SAFELY TERMINATE ALL LOCATIONS OF WASPS N HORNETS WITHOUT RISKING GETTING STUNG… IT CAN ALSO INCREASE THE SALES OF AIROSOL INSECTICIDE PRODUCTS THAT ARE CONSUMED BY ITS OPERATION… I HAVE MADE SEVERAL WORKING PROTOTYPES OF MY DEVICE THAT I CALLED.. A LASER TARGETED REMOTE CONTROLLED BEES NEST DESTROYER… HERE IS MY WEB SITE THAT I DEDICATED FOR THIS MUCH NEEDED TOOL…. http://www.myspace.com/hornetshive
May 18th, 2009 at 3:12 am
Hello. I am a inventor and I want selling my invention patent. my invention is about new security systems. do your organization help to me?please guide me.
have a nice day
June 21st, 2009 at 2:05 am
Can one sell a PPA?
July 13th, 2009 at 12:59 pm
Hi Jervis,
Yes - one can sell a provisional patent application. However, you should have proof of concept prior to approaching a company. Do you have a prototype?
July 13th, 2009 at 1:05 pm
Hi David,
The inventors club of Kansas City is currently holding submissions to pitch to Faultless which owns Garden Weasel and a wide array of other companies. My suggestion would be to submit your invention to them and begin researching other companies in the same industry as your product. Perhaps this would be a good addition to any wasp spray out there. I would then get to work on preparing professional materials to present to these companies. If you have additional questions, feel free to email us at info@ideabuyer.com.
August 18th, 2009 at 12:46 am
I HAVE A INVENTION THAT WILL SAVE LIVES AND FROM DRUNK DRIVERS DO ANYONE HAVE ANY LEADS WHO I CAN SELL THIS IDEA TO?
September 22nd, 2009 at 10:21 pm
THIS IS A CHIP THAT WOULD BE INSTALLED TO TRACK PEOPLE WITH MEMORY LOSS.TEENS THAT ARE PAST THEIR CURFUE.OR EVEN IF SOMEONE YOU KNOW AND IS LOST YOU COULD PULL THE SIGNAL UP ON YOUR COMPUTER AND EITHER FIND OR DIRECT PEOPLE.THIS COULD AND WILL WORK.
September 24th, 2009 at 4:10 am
Hi, I have a number of ideas that I have provisionals and pcts on and I am seeking serious investors to run through some of the ideas with, my goal is to license some of the ideas. The inventions that I am working on at the moment are in the fields of the wheelie bin industry, mobile phones and goods transported in trucks. Any genuine feedback is apppreciated from both myself and business partner.
Please send feedbacks to the above email address…..
Thank you.
September 25th, 2009 at 3:29 pm
Dear executive contact:
This company is a new recycling company which is in process of producing a recycling bottle to collect residential waste oil. The goal of the company is to coordinate the distribution of the collection bottle to residences within the country, collect the waste and then distribute to biodiesel recycling plants for energy production. This company, however, is in need of relationships with companies such as yours in order to accomplish the company objectives. My name is Eddie Oquendo and I am the owner and founder. I am interested in scheduling a meeting with one of your representatives in order to discuss my business further and to explore possible business relationships with you in greater detail.
Please feel free to contact me at eovirella@yahoo.com or visit my website http://homerecyclecookingoil.com
October 28th, 2009 at 12:38 pm
I have a provisional patent that I would like to sell or license with a manufacture. Please help me
October 28th, 2009 at 9:51 pm
patent link sent
November 2nd, 2009 at 11:19 pm
I am looking for financial help in patenting or a buyout of an idea I have. The product is a small hand tool used in the automotive,marine & anywhere else spade fuses are used. I have a working prototype, that cost $3.45 to make and should retail for no less than $5.95. I am sure it could be mass produced for about $2.00 each. contact Scott at (352) 233-8276
December 30th, 2009 at 3:27 pm
Thank you so much for all of your help selling my patent!!!! I didn’t expect to be treated so well after all of the obstacles I had run into prior to meeting Eric. Thank you for working with me!!! I will be sending you copies of my royalty checks!!!
January 14th, 2010 at 7:06 pm
I own a patent that controls the growth of vines with tendrils ie ivy. I am interested in
licensing or selling it
February 19th, 2010 at 3:27 pm
I have a patent I would like to sell, license, or bring to market but dont know where to turn. I would appreciate any help you could provide.