Selling or Licensing a Patent: Information Companies Want to See
Getting information about your product to companies can be difficult. Here are some suggestions on what information to send, and how to send it.
After doing your market research, you should be aware of some companies that would be a good fit for your product. (They buy patents, they have manufacturing and distributing capabilities, and they are marketing to your product’s target end-user.) A briefing document on your product is a great way to generate interest in your product. It is short, concise, and full of solid, well-written information.
A good briefing document should explain the benefits of your patent, what you are looking to do with your patent, and why you are contacting the company or person. It should be clear and written in plain English. Through sending a briefing document, you are expressing the desire for someone to take over your patent.
When you contact a company for the first time about your product, the information sent should be well thought out. This is especially true if this company has never heard of you, or your product. It is important to provide quality information about your product, in a complete and concise manner. Think of it as a resume for your product. You wouldn’t send the biography of your life to a potential employer, just like you shouldn’t send a copy of your patent to a potential buyer. Very few people have the time or will take the time to read massive amounts of information from a complete stranger.
Here are the sections you should include in your briefing document:
- Explain why you are sending this document out to companies.
|DO use phrases like:||DO NOT use phrases like:|
|“to make you aware”||“this is a great idea”|
|“to inform you of”||“you will make a lot of money”|
|“to see if you have any interest in”||“it is going to be bought by everyone”|
|“to contact you regarding”||“you will want to buy it”|
Many inventors are quick to TELL potential buyers that they SHOULD or will WANT to buy their patent. Honestly, no one wants to be TOLD what they are going to like. Similar to applying for a job: you would not write at the top of your resume “you will want to hire me” or “I am the best”. It could easily lead to your resume going straight into the trash.
Make the introduction to your product a pleasant, and non threatening experience.
Ex: This document is intended to inform you that the patent for PRODUCT X is for sale or license.
- Explain the basic benefits of the product.
It is important to note that a benefit of the product is something gained by the user. The seller of the product can also be benefitted financially by selling it.
- What milestones have already been reached by the product?
This section should include the current status of the product. Questions to be answered should include:
- Is the product patented? For how long?
- Is there a working prototype? If so, is there more than one available?
- Is the product currently being sold? If so, what it the sales track record?
- Are there currently relationships with manufacturers, distributors, retailers, etc.?
- Include a BRIEF history of the product.
A short explanation of the people or companies that have been involved with the product should suffice.
- Pertinent Details:
- Details about the product and its function that have not already been described.
- Include any market research findings that may have an impact on the level of interest. (More important for persons/ companies not involved with the market.)
Like a resume, this should explain the details about the product that would qualify it for a sale or license.
- Target Audience:
- Based on your market research, explain your target end-user.
Do not use the exact target audience that the company may have on their website. Most likely, they will know if you have copied and pasted. Your market research should have given you a conclusion as to who the optimal end user is. A basic two-sentence explanation, will allow the reader to understand whether your product will fit with the products they already work with.
- Objective Explanation
At the beginning of your briefing document, you explained the purpose of sending the document to the reader. Now is where you explain, in greater detail, your objectives.
Ex: “I am looking to sell the rights to my patent exclusively.”
- Contact Information
Be certain to make sure that your document includes your contact information. Â As said in other articles, be sure that your contact information is appropriate and professional. Email addresses such as, HotBlonde@email.com, will not be taken seriously.
After you have completed the written information, you may want to include a logo in the header of the document. Make sure that the document has been edited well, and then it will be ready for printing. A professional print job is always more impressive, and can cost as little as $.08 per page.
A briefing document is an inexpensive way to generate interest about your patent, and allows you to use it as an excuse to make contact via telephone with a company.
For companies interested in more information, send them a Pitchbook with a comprehensive analysis.
It’s time to generate interest in your patent!
If you are interested in having professional materials created for you, please contact Lindsey@IdeaBuyer.com.
About the author of this article:
Lindsey Yeauger is the Product Marketing Director for Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com- The Online Marketplace for Intellectual Property. The site gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email her at Lindsey@IdeaBuyer.com.