How Do I Sell My Patents to International Companies

Another money-making opportunity from your inventions is to sell patents to international companies, which, as you would expect, will undoubtedly require a great deal of contemplation and strategic thinking while considering every intellectual property law related to such venture. When the question sounds in your mind, “How do I sell my patents to international companies? This article will walk you through the process and procedures of selling patents, approaching international buyers, and – most importantly – the factors to consider so that you will be able to successfully navigate patent transactions.

Patents and their Value

Also, important knowledge is prior to the sales stage; hence, one needs to understand what a patent is about and then add value towards innovation. For instance, it can be called the patent rights to use, build, and/or sell an invention for 20 years. In that case, the owner of the patent would exercise full control over his invention along with earnings in terms of royalties from patents owing to licensing or sales of patents.

That introduces the patent value created on

• Market demand: Does your invention solve to a demand or problem for the market?
• Patent scope: Is it broad in scope to limit other innovation from making more solutions?
• Ease of commerciality: Does your patented invention have ease for it to be manufactured or used?
• Geographical protection: Where can your patent be claimed? The knowledge of these factors will allow you to determine the value of your patent before letting it out for tendering internationally.

How Do I Sell My Patents to International Companies?

See below the various procedures involved with a successful transfer of your patents to overseas-based companies.

1. Market analysis: determine the number of sellers.

First, identify which companies might be interested in acquiring a patent for this invention. Well, these companies can be either technology, pharmaceutical, manufacturing, or even consumer goods. A little research will, therefore point out a company which may purchase your patent or license it.

Potential buyers:

• Industrial Conferences and Trade Shows: Attend fairs that fall within the scope of your innovation and thus, probably find prospects
• Patent Agents: Only those companies whose role is the trading of patents can bring into all countries the best patent buyers in the world.
• Internet Patent Trading Forums: Websites would include IPTrade, Patent Auction amongst others marketing patented products for license or on direct sales. Of course, an international business will browse the web.
• Contact Direct: Just like submitting your letters to firms which will probably buy your invention. Okay, just go ahead and directly reach out to them through their email or through their telephone

2. Patent Analysis

All considerations of relevance must be factored in the valuation of the patent before negotiation for its sale. Of course, this will depict the market value of your patent during current times. Common factors that have to be put into consideration in doing the valuation usually involve matters related to how relevant the technology developed is to a given patent, the possible size of its market, and the strength associated with the given patent. This will be eased by a patent appraiser professional or you can get the same thing through online valuation tools. They will prepare you for the actual negotiation whereby you get honest prices regarding your patent.

3. Knowledge of International Patent Laws Knowing

If you are selling products to other firms that are headquartered outside your own country, you would appreciate that intellectual property laws vary between countries. Patent laws in different regions have also been quite different, hence wise to first check the patent validity in any region you will be selling to.

For example, one US granted patent is not per se protected under the European or Asian countries. But with that proviso, if one is interested in conducting his/her business through the international markets, it is advisable to file patents in core countries where the concerned business ventures are intended to be incurred. This in turn is pretty expensive but valuable when sold out before an International group of Buyers.

Example is the Patent Cooperation Treaty. You get more patent rights in most countries from one PCT application.

4. Portfolio of patents

You are selling a patent hence, it ought to be one trailed by a portfolio that has a likelihood of commercialization from the patent sold. It ought to be trailed by;

Patent Information: This comprises an exact copy of your granted patent and other pertinent documents regarding it.

• Development history: Any development process that involves prototyping, testing, or data.
• Licensing or commercialization opportunities: Summary of how your patent can be monetized or implemented in the marketplace.
• Market analysis: Data of the potential market for your invention, including trends, demand, and competitive analysis.

If well prepared, it will build up trust with international companies to reveal that your patent is an asset.

5. Negotiate the Sale or License Agreement

After identifying who the buyers are, and the amount of value for the patents one could start negotiating. There are two main ways a person can make money from a patent, either by selling or licensing.

• Patent Selling: Here, title transfers to the buyer regarding a patent. The sale can be based on a payment of an aggregate sum once and for all to the seller. This may also see you lose the rights associated with the sale.
• Patent licensing.  Patent licensing is the way where a company will license your patent but will not do so without agreed terms; you are still the owner. Such terms could be payment based on royalties or even just one payment; it could be a sure means of generating income.

Consider the following in negotiation:

• Payment: Payable as single payment or in royalties/remainder, or the combination of the two
• Territory: The scope of the sales or licensing involved in terms of regions or countries
• Exclusivity: Exclusive agreement or non-exclusive.
• Patent maintenance: The payment for patent maintenance in foreign jurisdictions so that the buyer continues making this payment. It will be wise to engage an experienced patent attorney or broker who will help you negotiate proper terms and ensure that the agreement is in accordance with international laws.

6. Conclusion of the Agreement by Counsel

Your patent sale or licensing should be formalized with a legally binding agreement. Ideally, work through an intellectual property lawyer in drafting and reviewing a contract for you. Such an agreement will include all the terms of the sale or license, including payment terms, the rights and obligations of parties to it, and how disputes are resolved.

In the case of selling to international companies, the contract would have to hold in all other relevant jurisdictions where the sale and purchase are considered. This involves coordination with law professionals in another country to put everything in proper order.

Conclusion

The selling process of patents to foreign companies is very rewarding but complex and stringent under many complexities and laws on intellectual property. The selling process – from the identification of possible buyers, negotiation of the sale or licensing agreement-must be taken very seriously so you will get the best amount from selling it out. If you have ever thought about how best you can sell your patents to these international companies, these steps are sure to get you there while you get to reap maximum benefits from your intellectual property.