The process of inventing a new product isn’t easy. However, many people take the journey because patents are very profitable. According to industry experts, there are a number of ways inventors can get a lot of money for their patents.
Give the Invention to Someone Else
In the business world, many highly successful inventors create contracts so that they can give the rights to their inventions to other entities. You may want to go down this path if you’d like one big payment. However, you must understand that once the contract is signed, you’ll lose complete control of your product. If your invention hasn’t been file at the United States Patent and Trademark Office, it can still be assigned to another entity.
By licensing an invention, you’ll give the recipient the right to reproduce, distribute, and sell the product. In return, you’ll get many royalty payments on a regular basis. Payments from royalties are often calculated based on an overall percentage of monthly or yearly revenues. You can also create a contract that so you can receive payments according to the number of units that are sold.
If you’re going to get a license for your product, you must fully understand the options that are available. The most common solutions for inventors include:
- An exclusive license
- A non-exclusive license
- Time considerations
- Geographical options
An exclusive license should be processed if you’d like to give the rights to only one individual. If you think that you’ll earn more money by licensing the product to multiple companies, a non-exclusive license is worth considering. A licensed agreement that has time perks benefit inventors who prefer to set the terms for a specific number of weeks or months. Licenses that have geographical peaks give inventors a slightly different advantage. You should only get a geographical license if you want to give rights to people who run businesses in certain cities in the United States.
Besides these methods, there are many other ways to earn money from a patent. If time is a major issue, you can speed up the process by working with a patent assertion firm.