A Simple Guide to Selling Your Patent, Selling a Patent, Sell a Patent
Selling a patent can be a great way to turn stagnant but valuable intellectual property into cash. Selling a patent is a great option for those who don’t necessarily have the resources to bring a product to market themselves yet can show the potential the patent would have if produced and marketed. This article discusses how to increase your chances of selling your patent and provides a basic education on the subject.
Selling A Patent: Critical Elements
To sell a patent, it is critical that one can demonstrate that it is valubale, that potential customers are interested in it, and have an idea of how much they want to receive in exchange for the patent. It is also critical that the patent is presented for sale to companies in a professional manner and for what it is; a business opportunity. While selling a patent can get complicated, that is a good problem to have. The key is to market your patent as much as possible and get interested parties to the table. It is better to fire and then aim rather than get locked into paralysis analysis. If companies do not know about your patent, they cannot make you an offer or plan on putting the product into their product line. Get out there and do what it takes to reach companies.
Selling Your Patent: Sacrifices
That said, there are some potential drawbacks to selling. After all, what if it becomes a huge hit? More concretely, what if you sell your patent for $100,000 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 need to realize that as the intellectual property ages it could become worth less money and you could be missing out on big opportunities. Our recommendation is to also consider licensing if you are interested in future profits (There are many companies that are open to licensing as it provides less up front cash and puts some of the risk on the patent owner. 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.)
Selling Your Patent: Making the Pitch
How do you actually go about selling a 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. While working with personal contacts is ideal, many patent holders do not have the network to be personally introduced to executives. When you do make contact with a firm, you want to present yourself as a business man or woman (I.E.- Product Developer, Founder, etc), 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. Here, you will encounter companies or people interested in your product and potentially buying it.
Selling Your Patent: Focus on Generating Interest
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. You can create a listing on our website in less than 10 minutes and immediately expand your network to thousands of companies that are looking for innovative new products to license or purchase in their industry.
Eric Corl is the Founder and CEO of IdeaBuyer.com, the online marketplace for intellectual property. The site helps innovators generate interest among 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.