When you’ve developed a new patent, you don’t necessarily need to put a new invention into production all by yourself. Sometimes a patent licensing agreement could be a favorable arrangement that allows you to make money off of your invention and get your idea out there. An Orange County, California IP licensing lawyer from our firm could tell you more.
What is Patent Licensing?
Patent licensing allows the inventor to give another party permission to act as if they own the patent themselves. A contract transfers the rights to use the patented invention or technology, usually for a limited time. Sometimes the license can also be limited to a specific region of the world or a particular industry.
Even though you have licensed your patent out to somebody else, you keep complete ownership of it. The companies or parties licensing it do not get to own your idea or invention. This means that you can benefit from the use of your patent without any real immediate drawback. However, it is still important to understand exactly what happens when you license your property and what could occur as a result.
What Are Some Advantages of Patent Licensing?
Let’s start with the good news. There are many potential benefits of allowing someone else to use your property. Patent licensing could:
Allow you to break into new markets: If local rules make it difficult for a foreign entity to do business in certain markets, you might have better luck licensing your patent and letting someone else bring your idea to a new market for you.
Generate revenue: If the licensee is making money from your patent, so are you. You may even be able to save money because the licensee would be responsible for costs like manufacturing, marketing, and distribution.
Get you to market faster: Instead of doing everything yourself, you are licensing your idea to someone else who already has an infrastructure and the ability to get a product to market quickly.
Are There Any Drawbacks Inventors Should Know About?
There are also potential issues to be aware of when you enter a patent licensing deal though. You need to worry about:
A loss of control: You no longer have complete control over your invention once you license it to someone else.
Damage to your reputation: If the licensee does a poor job with your patent, that can damage your reputation and the reputation of your idea. This can be hard to come back from.
Relying too much on the licensee: You may not have that much control when you license your patent to someone else. This can mean relying completely on the licensee to make you money or help you get a foothold in the marketplace.
Talk to Our Patent Lawyers
If you’re curious about the patent licensing process and wondering if it might work for you and your invention, contact Burns Patent Law. We can schedule a consultation and help you figure out the best use for your patent.
