11. Patent Commercialization: Making money with Patent

11. Patent Commercialization: Making money with Patent

Table of Contents

The Purpose of this article is to help you understand:

  • procedure to license or sell the patent for your invention
  • skills required for patent commercialization
  • researching and reaching decision makers for patent licensing
  • documentation or agreement required for licensing patent 
Patent Commercialization: Making money with Patent

the moment you receive the granted patent or even after filing for a patent (that is getting patent pending status) the very next thing that you would think about is how can I make money with this Patent.

How to sell a patent or license a patent in India?

as the matter of fact, even patent-pending or patent applications that are not yet granted can also be taken forward with commercialization activity. For simplicity, let’s compare your intellectual property that is granted patent with a tangible property like a building;
How do we monetize a building?

  • We can rent it
  • We can sell it
  • We can use it for our own purpose

Similarly, we can commercialize Patent (Intellectual property) in the following ways:

  • We can license our Patent to other businesses and receive royalty payments
  • We can sell our patent to other businesses for a lump sum amount
  • And we can use our patent for building a strong business around it as it would protect us from competition

Book : “How to make money with your patent”

How to license, sell, or commercialize your patented invention and earn significant profits

Author: Mr. Prasad Karhad

Link for the book on Amazon: https://www.amazon.in/dp/B0CSPJXRZ5

Dear Patent owner,

Picture this: You’ve just received the news that your patent has been granted. It’s a moment of triumph, a feeling of accomplishment, and a stamp of validation from the patent office. But as you hold that patent, the obvious question would be “What next?” How do I turn this paper proof of my ingenuity into a stream of steady income?

  • What the true potential of my patent is? How do I unlock its real value?
  • Who would be interested in buying or licensing it?
  • How do I approach and engage the right businesses or firms?
  • How can I get appointments & meetings with key decision-makers?
  • What should I include in my presentation, and how do I negotiate effectively?
  • How to finalize terms of agreement or contract?
  • How do I navigate the intricacies of legal, financial, and patent office procedures?

Most inventors stop at the grant of patent. They hang it on their wall, a symbol of achievement, but they miss out on the real prize. That’s where “How to Make Money with Your Patent” book comes in, a practical, no-nonsense guide crafted for inventors like you who are ready to take the next step.

Transforming Patents into Profits: Every chapter in “How to Make Money with Your Patent” is an answer to your burning questions. With real-life case studies, practical examples, and easy-to-understand language:

Understanding Your Patent: It all begins with a deep understanding of what your patent really signifies. It’s not just a right to exclude others but a beacon attracting potential partnerships and opportunities. What does your patent grant really mean? What are your rights, and how can you protect your invention? Our book starts by unraveling the full meaning and power of your patent.

Evaluating Commercial Potential: Every invention has a market waiting to be tapped. We walk you through methodologies to value your patent, assess the market, and identify the distinctive edge your invention holds. Determining the commercial value of your invention is crucial. The book guides you through assessing its market viability, identifying potential applications, and understanding the competitive landscape.

Identifying Your Market: The right audience can turn your patent from a piece of paper into a goldmine. Our guide helps you identify and understand your target market – who needs your invention and why. Knowing who needs your invention and why is critical. The book offers strategies for effective market research, helping you find your niche and understand customer motivations.

Choosing right businesses: build an ideal patent buyer or patent licensee avatar, aligning your patent with business strategy of licensee. The book helps you understand ideal business partner or licensee. Who are they? What do they need? And how does your invention fit into their strategy?

Communicating Effectively: How do you reach out to potential partners or licensees? The book provides practical advice on call scripts, email templates for setting appointments, scheduling meetings, reaching right decision makers, making the first contact, and preparing for meetings.

Creating a Value Proposition: Your invention is more than just a product; it’s a solution. We guide you in crafting a value proposition that highlights the unique benefits of your invention, resonating with the needs of the market. Learn to communicate the unique benefits of your invention compellingly. The book teaches you how to create marketing materials that capture attention and convey your message effectively.

Negotiation, agreements and contracts: The deal is in the details. From preparing for negotiations to understanding licensing agreements, our book empowers you to navigate these waters with confidence. Negotiating terms and agreements can be daunting. The book demystifies this process, offering insights into preparing for licensing meetings, handling objections, and steering towards successful outcomes.

Other ways to make money: Beyond licensing, there are myriad ways to monetize your patent. We explore these avenues, providing you with a broader perspective and more options. There’s more than one way to monetize a patent. The book delves into various strategies, including selling your patent or enforcing your rights in case of infringement.

Legal and Financial Insights: With great innovation comes great responsibility. We dive into the legal and financial aspects of patent monetization, ensuring you’re well-versed in compliance and smart financial planning. The book also covers the legal aspects of patent monetization, from understanding the Indian Patent Act to drafting effective agreements and ensuring compliance.

Real-World Insights and Practical Tools: What set this book apart are the real-life case studies, examples, and templates that provide a practical perspective. These resources are invaluable, offering a glimpse into the successes and challenges faced by others and teaching lessons that can be applied to your own journey.

Don’t let your patent just be a certificate on the wall. Turn it into a source of income and opportunity. Order your copy of “How to Make Money with Your Patent” now and take the first step towards realizing the financial potential of your innovative creation.

Amazon Link for Book   https://www.amazon.in/dp/B0CSPJXRZ5

A short video about the book “How to Make Money with Your Patent”

What is the procedure to sell or license (commercialize) my patent?

To understand the steps involved in selling or licensing a patent, we first need to be very clear on understanding the following Points:

  • What is the exact invention that we got the protection for?
  • What are the boundaries of claims of my patent?
  • What part of my invention is falling in the public domain and what exact part is my inventive step and protected by proper claims
  • Which industries or sectors would benefit from buying or licensing my patent?
  • How this invention would be a commercially viable and a good investment for a business that would buy or license it?
  • How can I communicate this value that my patent can bring to a business in the shortest possible time and in the most effective manner
  • What tools, media files, marketing materials do I need to be able to attract buyers or licensing parties for my Patent
  • What legal agreements happen when I sell my patent or when I license my Patent
  • What is the amount? Or how much money would I be getting if I sell or license my Patent?

generally, there are 3 steps followed in the commercialization of patent

Stage 1: Understanding the commercial potential and importance of our patented invention and creating the marketing material (emails, ppts, videos documents, etc.) which communicate that value in a systematic manner and in the shortest possible time

Stage 2: finding relevant industries and businesses who would be interested in licensing or buying your patent and contacting them professionally via email, Linkedin or call

Stage 3: Meeting / Presentation with interested companies  and selecting the one with whom you would like to move ahead for selling or licensing your patent

Let’s talk about these stages in detail:

Stage 1: commercial potential and marketing material

When we are in the phase of research and development and filing patent, examination, FER, and responses till the grant of the patent we are mostly dealing with the technical part of our invention;

When we receive the grant of a patent, now our role shifts to understanding the technical aspect as well as understanding the commercial aspect and commercial potential of our invention.

The better we understand it the easier it would be to find the right market fit and right business who would want to license or buy our patented invention.

Understanding is one part but the other part is equally or even more important, that is communicating our value to interested companies and businesses.

This involves a lot of skills like:

  • communication skills (written and verbal)
  • marketing skills
  • selling skills
  • negotiation skills and
  • An important skill of Talking to higher authorities like CEO, CTO, R&D head and decision-makers of businesses

Hence combining all of the above skills, we need to create the best representation of our patented invention which is

  • short
  • easy to understand
  • clearly communicates its value and benefits to business
  • helps decision-makers to decide on whether to proceed with this initiative

This is achieved via multiple mediums like

  • a perfect email copy explaining our invention
  • a short but complete presentation explaining technical details and potential of our invention
  • a short video or animation explaining invention (this is optional)
  • a decent script for calling for appointment/visit with decision-makers

Now, as an inventor or research scientist, or technology person you may not have all these skills necessary for succeeding in Stage 1 of patent commercialization;

Hence, IPR firms / Patent attorney firms offer patent commercialization services to support inventors and patent owners with the right skills on board, your patent would be best represented to the right decision-makers who would be a potential licensee and would be taking the deal ahead if they are interested in your patent.

check examples of such presentations and animation videos

Stage 2: finding relevant industries and businesses

Based on the work done in stage 1, we do a comprehensive research of industries where our invention would be valuable.
This search involves

  1. identifying products and services which would directly be benefited by our invention or
  2. some allied products or services where this invention can be a part of package or
  3. an industry where our invention can create a new and separate market

we would be creating a list of such companies and find out relevant decision makers like CEO, CTO, Research and Development Head, etc…
we devise a plan to contact them via LinkedIn, email, and calls and share our relevant information as created in stage

This is a continuous process till we find the right buyer or a licensee for our patent

Stage 3: Selecting the right buyer or licensee

With the continuous efforts from stage 2, we would be getting responses for our communications from interested parties/companies and in the next step, we would be visiting or (discussion over video conference) with the decision-makers and their team.

This is where the discussion about technical details of the invention and commercial viability of the invention (patent) would be discussed to the greater length.
This may require multiple visits, discussions and a lot of offers and counteroffers may take place when we consider selling or licensing our patent.

And then there would be a point where both parties (you and the interested party) would agree to a one-time lump sum price or per sale royalty payment or any combination thereof. and then comes the most important part in patent commercialization…

Documents, Agreements in Patent commercialization

Based on stage 3 of our patent commercialization process we need to create relevant documents and agreements as below :

  • Patent license agreement (if we are licensing patent)
  • Term sheet document (terms of the agreement)
  • Deed of assignment of Patent (If we are selling patent)

If we refer to patent law (Patent Act), Section 68 of the Patents Act says a patent license will only be valid if it is reduced to writing and is registered with the patent office and further, Section 69 requires a licensee to get himself registered with the Controller of Patents.

Furthermore,
There are different types of patent licensing and these types have their own pros and cons:

  • Exclusive License
  • Non-exclusive License
  • Sub-license
  • Cross License
  • Compulsory License etc.

for further help with the commercialization of your patent you may reach us by contacting us by email or call

Prasad Karhad
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