Click here to Download Turning Your Patent Into Cashflow
Protect it! IP has released a new eBook, Turning Your Patent into Cashflow
This book will be available for free to the first 200 hundreds people that download it, so claim your copy today.
Abstract: There are four main ways to derive money from a patent: commercialization, offensive licensing, merchandizing, and auctioning. Each approach involves a different amount of work beyond obtaining the patent, and some models work better in certain industries. Validation of an invention as a marketable commodity requires not only obtaining a patent, but a monetization plan as well. This article will discuss these four approaches, as well examine some of the reasons patents aren’t licensed. Finally the article concludes with some advice to help future inventors avoid the pitfalls of filing patent applications on ideas that cannot be monetized.
Table of Contents
A) Forming a Company – Patent Commercialization
B) Easy Licensing Techniques
C) The Merchandizing Option
D) So can an Inventor Make Money from Selling a Patented Idea?
- Patent Commercialization
Building a product or process embodying the patented technology and forming a company to sell the product or related service.
A commonly misunderstood principle of patent law is that having a patent on an idea means that the person who owns the idea can make and sell it.
- Offensive Licensing
A) Staging your Patent for Litigation
B) Forcing a Settlement Even if Your Expected Damages are Less than the Cost to Enforce
C) Valuing a Patent
D) A Model for Staging A Contingency Case
E) Selecting the Right Plaintiff’s Firm
Hire a patent attorney you know and trust to engage and supervise your litigation counsel.
- Merchandizing the Patent
- Auctioning the Patent
- The Real Costs to Protecting a Patentable Idea
A) Moral Considerations to Auctioning your Patent
B) Pragmatic Considerations for Auctioning/Selling a Patent
C) So how much is a Patent Worth on Auction Anyway?
D) Reasons Why Most Patents are Never Auctioned
E) Reasons why Inventors don’t auction their patents
F) Hedging Against the Reasons Inventors fail to Successfully Auction their Patents
A patent application will be denied if it is not novel, unobvious, or fully described.
If you want to save money in filing a patent application, write the best disclosure you can and engage your attorney to work from your best work.
To put it directly, not all inventions are patentable, and not all patentable inventions are valuable – most aren’t.
- Can an Inventor Make Real Money by Auctioning their Patents as a Business Model?
Professionally inventing and auctioning patents is like being a professional house flipper, online stock trader, or professional poker player.
- Forming a Business Model to Invent and Auction Patents
Results and analysis of a hypothetical patent filing and auction process
- Thinking like an Investor not an Inventor
- Predicting Hidden Prosecution Costs
The bottom line is this, when an inventor approaches an attorney to obtain a patent, he or she should be focused on whether this invention will make him or her any money if licensed or sold, not solely on whether their invention is worthy of being awarded a patent.
Without the right foundation, a patent application quickly becomes a bottomless money pit that will never return anything to the inventor but heartache and broken dreams.
Without a monetization strategy, the inventor’s gem of an idea becomes patented, but remains a diamond in the rough, because the inventor did not prepare for the necessary time and work involved to stage and polish invention, so that any plaintiff’s firm or patent enforcement company can see its brilliance.
- Building your Monetization Network