Want to sell a patent? Our guide covers practical steps, legal insights, and top reasons to consider this move. Read on to understand the process.
Roughly 90% of patents never generate revenue, according to Relecura.
Most inventors develop brilliant ideas and patent them but never commercialize them. Some lack business knowledge and resources to launch a product or service. Others feel they don’t have the capacity to ensure their ideas reach their true potential.
You can sell your patent(s) to overcome this challenge. The buyers most likely have the resources to bring your idea to life. Selling a patent can help you raise funds to finance other projects.
So, how do you sell a patent? Here are the legal considerations and best practices.
Understand Patent Rights
A patent grants you exclusive rights to your invention for a limited time. It prevents others from making, using, or selling your invention without your permission. Learning about these rights is vital before you can sell your patent.
Consider consulting a patent attorney to learn about these rights from a trained professional. The lawyer can guide you through the classification of intellectual property. They can verify whether your patent is active or has expired.
With their help, you can better understand how intellectual property transfer works. You can know the common mistakes inventors planning to sell their patents make and how to avoid them.
Evaluate the Patent’s Value
Several factors determine the worth of a patent, and these include:
- Market demand
- Patent type
- Licensing potential
- Competitive advantage
- Commercialization
Carefully review each of these factors to determine how they affect the value of your patent. For instance, your patent is likely to have a high value if it has a huge licensing potential.
You’ll likely sell such a patent fast as there is a huge demand for it. However, before you find out how to license a patent, make an informed decision. In some situations, licensing the patent can be more advantageous than selling it.
You may also need to research patent valuation methods such as cost, market, and income. Find out how each works, their pros and cons, and when to use a given method. Doing all these things can help you estimate the value of your patent.
Prepare Necessary Documentation
The right patent documentation can help build trust with potential buyers and facilitate a smooth process. The key documents include:
- Patent certificate
- Patent application
- Patent search results
- Market research
- Licensing agreements
These documents verify your patent’s ownership and the uniqueness of your invention. They provide evidence to show the demand for your invention.
Preparing these documents yourself can be overwhelming and time-consuming. You will likely make mistakes, creating a poor perception and making the patent sale hard. Mitigate this risk by working closely with a reputable patent attorney.
The lawyer will offer professional document preparation help. If you already have some of these documents, the attorney can review them to determine their validity. They can ensure you have proper documents that reinforce the credibility of your offering and can significantly expedite the patent sale process.
Create a Marketing Strategy
Identifying your target audience or buyers is the first step in creating a sound marketing plan. Research who stands to benefit the most from your invention. Determine your patent’s unique selling points.
Next, create professional marketing materials like presentations and brochures highlighting your patent’s benefits. Include critical data, case studies, and testimonials that reinforce the value of your invention. Well-crafted marketing documents can make a strong first impression.
Consider selling patents online through different platforms. However, be careful when listing your patent for sale, as some online platforms are unreliable. Fraudsters use them to scam people into disclosing material information about their patents.
Approach Potential Buyers
Begin by targeting firms that operate within the industry relevant to your patent. Conduct thorough research on their business models and evaluate how your invention could complement or enhance their products or services. Customize your approach to highlight how your patents align with their goals and objectives.
Network with key decision-makers within these companies and create a more direct and personal connection. You can also consider reaching out to angel investors or venture capitalists. These investors are often looking for innovative ideas and patents with strong commercial potential.
You may capture their interests by presenting your patent as a viable investment opportunity. Besides, choosing them can offer a wide range of patent sale benefits. On top of buying the patent, they might hire you as the inventor to oversee the launch process.
If you’re uncertain how to approach potential buyers, consider consulting a patent lawyer. The attorney can contact these buyers on your behalf.
Negotiate the Sale
Once you generate interest from potential buyers, the next is to discuss various aspects of the deal. These include the asking price, payment terms, and royalties. Clarify what’s included in the sale to avoid misunderstandings later.
Working with a patent lawyer during negotiations can be a smart move. Their expertise in intellectual property law can be invaluable in structuring a fair agreement.
Draft a Sale Agreement
A sale agreement outlines the terms of the sale and protects both parties’ rights. It should provide:
- Description of the patent
- Purchase price
- Rights granted
- Warranties
- Confidentiality
Involve a patent attorney to help you draft a legally enforceable agreement. The lawyer can include all key clauses, minimizing the risk of future disputes.
Transition the Patent
Transition involves officially transferring the patent rights through the United States Patent and Trademark Office (USPTO). You’ll need to complete the necessary forms and pay the required fees for the transfer. Provide all necessary documentation to avoid delays.
After the transfer is complete, both parties should receive a confirmation of the patent’s new ownership. This step is vital to finalize the transaction legally.
Seek Professional Legal Help to Sell a Patent
Selling a patent can be a complex process that requires careful consideration. That’s why it can be wise to seek an attorney’s help to sell a patent.
At Berkeley Law & Technology Group, LLP, we are a reputable intellectual property firm. Our attorneys are dedicated to delivering exceptional patent services. Contact us today to get help selling or licensing your patent.