How to sell a Patent?

One of the ways a patent can generate funds is to sell it. Owning a patent gives you ownership rights to the invention but by itself does not generate profit. To generate a profit, you can set up an operation to manufacture, market and sell that invention, or license the rights of the patent. Another option is to sell the patent to another person or business.

Quick Pay-Off

One reason to sell your patent is for a quick pay-off. Licensing your patent or building a business to sell your invention may generate profit but generally these are long term options that generate profit over time.

On the other hand, selling your patent can provide you with money that you can spend immediately.

Challenge of Selling a Patent

Contrary to the common perception, simply having a patent does not mean that others will be interested in purchasing it. Selling a patent can be difficult. Any person who would purchase the patent wants to be able to make a profit from it. However, your patent may not have a proven market or a demand. Due to this, you may not have any willing buyers.

Furthermore, the large number of patents available on the market may have an impact on whether or not selling a patent is likely. Each patent represents a potential success for a purchaser. Why should anyone purchase your patent when there are other options?

Patent Worth

What is your patent worth? This will likely require you to spend time and money on creating estimations and obtaining market research. Most buyers would want to see what costs would be associated with the commercializing the patent and what profits to expect. It may be beneficial to prepare a report that includes:

• The cost of building a prototype
• Logistics
• Sales and Distribution
• Profit

Presenting an estimate of what your patent is worth in the market may be beneficial during the sale process.

Hunting for Patent Buyers

Next, you will need to hunt for a patent buyer. By doing research on your potential market, you will be able to determine which types of businesses would be most likely to be interested in your invention. Building a list of potential buyers and reaching out to them is a good first step. Looking for companies that offer similar products as your invention may be useful.

You may also want to consider attending invention and investor tradeshows. Another option is to advertise your patent and ask for buyers.

Patent Broker

Rather than hunt for a patent buyer, you can enlist the services of a patent broker. A patent broker specializes in finding buyers for patents. A patent broker will likely have an established network of patent buyers.

Transfer of Ownership

Once you have found a buyer and the price is negotiated, you can begin the transfer of the patent ownership. At this stage, it is highly recommended that you have a patent lawyer to represent your interest.

An agreement should be drawn up and include price, timeframe and any other details, such as transfer of knowledge.

Having a patent lawyer ensures that your interests are protected and that you receive the expected payment from the sale.

The sale of a patent can be a very lucrative opportunity for you if done right. Having a patent lawyer by your side can be of great assistance.