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Why Licensing a Patent is the Sensible Transfer for Your Innovation

You’ve had that Eureka moment and have created the most innovative creation that will change humanity! But what next? It is a significant question that many innovators fail to answer. Do they want to manufacture the product on their own? How do they want the world to see this innovation?

Not everyone is born with a golden spoon in their mouth. Many people struggle to earn that spoon by working really hard. They invest their time, energy and money into creating that one-of-a-kind innovation. Protecting their right to sell should be the primary objective of any innovator.

The only way you can protect it is by patenting. And then license the patent to the corporations. Before indulging in the ‘why‘ of it, let us understand the ‘what’!

What is Patent Licensing?

It is the act of assigning the ownership of the patent to a third party to let them use, produce and sell your innovation in return for pre-determined royalties. The royalty rate can vary anywhere between 5% to 20%, depending upon the licensee. 

While licensing the patent, ensure you are clear about your objectives and intentions. Understand if you wish to gather funds to start manufacturing on your own or hand it over to others. Do you prefer to license it to a huge corporation or an individual? Having an open vision lets you decide the fate of the innovation.

Protip: Finding the professional to patent your innovation? Or in search of a company that will license your patent? Finding contacts has become easier than ever. GetEmail.io is the whitepages for all the professional email addresses in the world. The AI-powered website is the CEO of the email database and can validate any number of contacts in just a matter of minutes.

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Why should you license?

Financial Benefits

It is an explicit reason to license. As mentioned above, depending on the agreement, you’d get anywhere between 5% to 20% of the net revenues of the company. It is just the royalties you receive for licensing the patent to the third party.

Imagine selling a patent to a massive corporation. You might get huge rewards for the innovation but, there are no future returns here. You’ve already transferred the ownership rights to the company by selling them your innovation. So, instead of selling, licensing is the safe route for earning good fortune.

Manufacturing Stress

Creating innovation is a different ball game altogether. A few might build a new product in a few months, while others might take years and even decades to come to the finish line! However, manufacturing millions of that product is another game that not everyone excels. 

It needs leadership skills, coordination and organisation to ensure the product is manufactured and delivered smoothly. There are tons of hindrances that one cannot simply manage by themselves. In such cases, handing it over to the experts in this field is a smart move. 

Competitive Edge

NuCurrent is a wireless charging startup that has licensed its patent to corporate giants like Apple and Motorola. It gives them a competitive edge over other companies because of this deal. Many other corporations would prefer to work with this one not just for the product, but also for its credibility.

Since it has captured the interests of these giants, it is easy for them to enter the global market. Your name is already on the list of thousands of global companies and it becomes easy to access exposure for other innovations!

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