Patents are highly valuable commodities that can be tagged with significant amounts of money. It is really very hard to find a buyer in the global market, unless it’s sold to another inventor or a company that will purchase and exploit an invention or idea. This guide describes step by step the things you will do to find your buyers including methods for global outreach and has practical tips so that one can have a better chance of success.
1. The Patent Market:
Before going any further and explaining how to sell a patent, the market for a patent needs to be understood. A patent is an intellectual property right given to the owner of the patent right to make, use, or sell an invention for some years. However, that period usually runs for just about 20 years. In the real world, however, what really matters in a patent has more to do with the potential for turning it into revenue-generating mechanisms like licensing or even outright selling of a patent.
This type of patent purchaser would be as follows-derived market segments. They include:
- Technology Companies: To add value to their product lines through innovation or to augment the quality of technology.
- Manufactures: Auto, health care, electronics, and other such industries are represented by leading-edge technologies.
- Investors and patent aggregators: These are entities that buy patents for portfolios for sale or licensure to third parties.
- Start-ups and entrepreneurs: Small businesses or inventors that need a patent to attach it to their product or service.
Bottom Line
Market Demand: Your patent need must address some form of market demand or have an application.
- Novelty: Your patent should be innovative and obvious. That should rattle the markets.
- Patent Quality: Your patent needs to be well drafted, detailed, and legally tenable in many jurisdictions.
- Finding Global Buyers for Your Patent :After getting a good feel of the market, it is time to get into action by attracting buyers. Here’s how to find patent buyers on the global level:
1. List Your Patent on Online Marketplaces
Online patent marketplaces are going to sell your patent to the whole world. It connects the inventor to the potential buyer. Easy access to relevancies and a smooth transition appear at the sales process. The most known patent marketplaces are PatentMonetize where you can list your patent and explore for possible options for licensing purpose.
List your patent while using short descriptions that seed the description with keywords. Hail the commercial value of your invention and bring along some statistics or case studies to help them list the merits.
2. Contact Patent Brokers
This means that a patent broker is that intermediary between the patent owner and the buyer. In most instances, they know the patent buyers such as investment firms, large corporations, as well as small companies searching for new technologies. If you are to hire a patent broker, you will end up saving so much time and energy while being paid a great price for your patent.
3. Industry Events and Exhibitions
Additional avenues through which one would reach the potential customers are industry exhibitions, patent-related events, among others. One of the outlets where one can present in front of the decision-makers of some of the globe’s leading investment firms and organizations is through some of these above-mentioned industries’ events and exhibitions. Prominent among the above events and exhibitions are
- INTA Annual Meeting- International Trademark Association
- CES (Consumer Electronics Show)
- IPBC Global – Intellectual Property Business Congress
In addition, patent-specific forums and internet communities would introduce you to people who can be interested in your technology, and you will connect with other professionals on such platforms as on LinkedIn and particularly on these forums specializing on patents on the PatentsPostGrant, as there are also people who literally know the capabilities of patents. And network amongst them.
4. Seek Direct Contact from Potential Buyers
Sell your patent proactively to the potential buyers. So, research all the companies in your niche and try to find out if they have a requirement to purchase your patent. Prepare a nice pitch on the value that your patent avers and how it will fit in their business model. Tailor your message for each company and be prepared for communication follow-ups.
Some of the other great buyer categories that might prove pretty lucrative are the following:
Of course, all the technology companies would require new or novel technologies. Manufacturing companies which would actually produce the patented commodity. Companies acquiring patents typically invest in the rights to those patents for later licensing, or for selling off those rights.
Licensing As A Strategy
You cannot sell your patent always outright. The alternative to selling the patent is licensing your patent. Licensing means that you have ownership of the patent while gaining revenue continually, generated from royalties in the form of licensing fees. You may offer exclusive or non-exclusive licenses according to strategy and goals that you may pursue.
- Exclusivity License: The rights to use your patent in a particular market or geography are exclusively with the buyer.
- Non-exclusivity License: Several firms can use your patent at the same time but in various markets or geographies.
Licensing agreements can take international markets to your patent as they are global in nature.
Deal with Intellectual Property Law Firms
Most intellectual property law firms have a network of buyers who would wish to buy patents. They can assist in determining the strength of your patent, who these potential buyers are, and how legal and contractual matters will be handled when selling your patent. Patent brokerage services is a very common place activity these days in most firms.
3. Evaluating the Value of a Patent
What will sell your patent is the value of your patent. Patent valuation in any form is not easy; it is bringing various considerations into the equation:
- Market Potential: How much demand you have in the particular market for your patent.
- Patent Strength: The scope, novelty, and enforceability of your patent.
- Licensing Potential: You may calculate how much you can reap from licensing your patent.
- Comparable Sales: Identify comparable patents and determine how much they have sold or licensed for.
A patent valuation expert may be needed in order to set a fair asking price. The more accurate your patent price is the more buyers will likely be serious
4. Marketing Your Patent to Global Buyers
Effective marketing is the best way of finding a buyer. Other than listing the patent at a few marketplaces, making it more noticeable through social media marketing like that as follows can reach the potential buyer for assistance:
- Social Media Marketing: Advertise the patent on LinkedIn, Twitter, and Facebook; contact industry professionals.
- Content Marketing: Few blog articles or articles explaining the advantages this patent provides.
SEO: Make its online patent list SEO-friendly for the keywords opted by them that can rank that listing higher among the search engine results.
Partner with Patent Aggregators and IP Firms
Companies that buy patents in bulk are always looking for good intellectual properties to add to their portfolios. Reach out to these companies to see if they are interested in purchasing your patent.
5. Legal Issues in Selling Your Patent
Selling or licensing a patent is a legal process that requires the drafting of contracts and agreements. It’s essential to have legal representation to ensure that the terms are fair and that your intellectual property is protected.
Drafting a Sale Agreement
When selling your patent, you’ll need a comprehensive agreement that outlines:
- The price and payment terms.
- Transfer of ownership rights.
- The extent of the patent and any territorial restrictions.
- Warranties and indemnities clauses.
Licensing Agreement
If licensing is your preferred option, then the agreement must include the following aspects:
- Scope of use
- Duration of the agreement
- Royalty rates and terms of payment
- Geographical and market limitations.
Conclusion
You would then get a buyer for your patent through strategic planning, networking and promotion in the global market. This can be in the online platforms or patent brokers among others. At times, you attend industry events whereby you get in contact with people who buy a patent directly. Through this, you increase the possibilities selling or licensing it to the right buyer. Last but not least, ensure to calculate the value of the patent and advice one on the proper legal approach as it will go to protect their intellectual property.
FAQs
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How long will it take to sell the patent?
The patent selling time depends on market conditions, the number of demands present for that kind of technology, and it all depends upon how much effort could be made towards finding a patent buyer. In some cases, it takes even more than one year, in months.
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How much is my patent worth?
The best method of patent valuation will depend on the potential in the market of your product or service, the strength of your patent, comparable sales, and licensing opportunities. You can get an approximate idea by hiring a professional patent valuer.
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Shall I sell it outright or license it?
All depends on the objectives. In a straight out outright sale of the patent, money comes once in one lump. A license can offer royalty checks every month. If you view the technology will be around in the long-term, then a license will better suit your interest.
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Do I need to hire an attorney to sell or license my patent?
Yes, it’s always advisable to pass through an attorney for a patent to be assured whether your agreements are sound perfectly legally such that your rights are well catered for, should anything eventually go wrong over your intellectual property.
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Is my patent up for sale to all the peoples in the entire world ?
Of course, you can sell or license this patent out of the country where you are filing it; however, jurisdictional countries who issue it do require filing various patents for similar concepts that will require protection. With these tactics as presented with proactiveness, you would be able to find a world-wide buyer to take this patent and get as much as one could from monetary potential for the patent.
