Obtaining patents for your business can be an exciting process in protecting your intellectual property, but making money off of it in the immediate term is not typically achievable without undergoing a few particular business maneuvers, many of which tend to be loaded with risk. Regardless, that tends to be the nature of making money off intellectual property in a time when litigation over ownership rights has the potential to drain any money made.
The following are a few possibilities if your business has just filed a patent for a product and you want to maximize the chances of profit in the near future:
Selling Your Patent Outright
If you are a business in need of quick cash, selling off a patent you own is potentially an option. However, if you are seriously considering selling a patent(s), you must to remember that any future profits go strictly to the person or company you’re selling to. This is a key reason why you should strongly consider the value of the intellectual property you create. If it's something that nobody else has ever invented, then selling may be a mistake considering potential future profits.
Examine the market for your product and see if it really has potential. If it is similar to other products, selling may be better because it may not profit down the road and likewise can offer cash infusion to help fund your business or be put toward manufacturing more intellectual property in the future.
If you can go through a major company, licensing the rights to your patent might be a smart future investment. While you won't be making any immediate money from a quick sale, giving away licensing rights to a well-known company could generate residuals later. It all depends on how well your product is marketed and whether it sells well in the marketplace.
Legal Zoom points out that giving away licensing rights can be risky legally based on possible disputes between the company and your business if your product takes off. When that happens, litigation could take away any profits generated.
Despite the risks, your best bet is likely in being able to get your intellectual property marketed properly while still having the prospect of future returns. You can find those who buy or license patents at trade shows or by contacting independent venture capitalists. Beware, though, of sites that ask for contingent fees in exchange for being your patent broker. These can sometimes be crooked organizations only out to get your money.
Keeping the Patent Under Your Own Control
If you have the necessary budget to market your product on your own, you could just keep all rights to the patent. You still take risk here with the usual problem of not knowing whether the patented product will sell well.
Most of all, you need to keep your patent safe from your competition if you decide to hold all ownership rights. You might even have intellectual property in your business you don't realize should be patented. Let Traklight be your guide in finding that intellectual property and providing proper security for your patents through the use of our secure IP Vault on the cloud.