HOW TO LICENSE YOUR PATENT

Most individual inventors should consider licensing their “patent rights” to an existing manufacturer and simply collect a quarterly royalty. It is important to understand that you license the “patent rights” and not the invention. In other words, you must either have a patent or have applied for a patent (“patent pending”). No manufacturer is going to seriously consider licensing your idea without a patent or patent pending (see our Patent Protection section).

Licensing your invention is basically a Four Step Process:

Locate Manufacturers
Prepare Marketing Material
Submit Marketing Material to Manufacturers
Negotiate License

Of course reaching Step 4 depends upon how well you do Steps 1 – 3. You will first want to Locate 20 to 100 Manufacturers who make products similar to your invention. You will then want to prepare a professional looking Marketing Letter and possibly even a Professional Brochure of your product. You may even want to start your own Product Web Site showing your invention in further detail for the manufacturers that receive your marketing letter.

After you receive some responses from manufacturers, the next step is to Negotiate the Licensing Agreement which you should hire an experienced attorney for. If you are unable or unwilling to take the time for the Four Step Process, then you should consider our People Who Can Help section for assistance in marketing your invention to a manufacturer.

LEGAL DISCLAIMER: This web site provides general information only, not legal advice. You should not act upon this information without independent legal counsel. You must read and agree to the Terms of Service before viewing this web site. The NIFC is not associated with any Federal or State government agency. If you have been harmed by an invention marketing company or patent attorney, you should immediately seek the legal assistance of a reputable attorney licensed in your state. Michael S. Neustel is licensed to practice law only in North Dakota and in the United States Patent & Trademark Office. Michael S. Neustel is the owner of Neustel Law Offices, LTD and Neustel Software, Inc. Statements made in this web site are merely opinions of the National Inventor Fraud Center, Inc. and should not be interpreted as factual. Neither Michael S. Neustel nor the NIFC market inventions, provide market analyses or provide marketability analyses for inventors. You are strongly encouraged to investigate any company or law firm you plan to work with and do not rely solely upon this web site when selecting a company to work with. Only you can determine if the companies listed on this web site are reputable or not.