If you obtain a patent for an invention or product, your primary goal is likely to protect your intellectual property. Perhaps you’ve created a consumer product you believe will revolutionize a certain market. You may want to patent that product to prevent others from using your design, allowing you to use it as the foundation for a new business.
However, another option is to sell the patent. This is a common practice for many inventors. Once you’ve secured the patent and exclusive rights to your intellectual property, you can market it to other corporations, allowing them to purchase the rights to produce your invention. Depending on the patent, this can be a very lucrative option.
Why would another company buy it?
A company may purchase a patent to save on significant research and development costs. They might have been trying to develop a similar product but struggled to create one successfully. Buying your patent streamlines their process, and they expect to recoup their investment quickly once the product hits the market.
Selling your patent can also be beneficial if you’ve created an invention but lack the infrastructure to meet consumer demand. While you know the product is highly desirable, establishing manufacturing and distribution channels is an enormous undertaking that could cost millions of dollars. Instead, you can sell the patent to a company with the necessary manufacturing capabilities. This allows you to earn money upfront, while the purchasing company profits from the product over time.
Navigating the complexities
Selling and transferring patents can be incredibly complex. It’s crucial to understand the legal steps involved and ensure the process is handled properly. Working with an experienced law firm can be invaluable in navigating these transactions.
