How much money can I make by patenting my invention?

How much money can I make by patenting my invention?

This is the most important question each inventor or researcher has in mind when deciding about going for patent, after all monetizing research and development efforts and enjoying monopoly in return of disclosing the invention to the public is the base of patent system.

The patents are as valuable as they are worth in commercial use. In other words, there has to be a commercial value for the invention that you are patenting, there need to be companies, businesses who would potentially want to use your invention and paying you royalties. Or companies who could be interested in buying out your patent if you are willing to sale it.

If this part is missing, that is your invention is does not have any commercial value then probably your patent for that invention would also be worthless.

The amount of money to be made by patenting your invention completely depends on how much commercially valuable your invention is, and your ability to commercially exploit your patented invention. 

strategies to monetize your patent

How much money can I make by patenting


Monetizing your patented invention... This is the moment that makes:

  • all of efforts you took in research and development,
  • filing patent for your invention and
  • ultimately getting patent granted for your invention

worthwhile. it would be that golden time, where you get paid for your efforts


Licensing your patent to a business 

This is the way preferred by most inventor who comes from technical background and who are also owner of the patent, in this option you license your patented invention to an existing business for whom your invention would be profitable venture and after every sale made or after a fixed time interval you would be paid royalties for your patent.

This is most passive form of monetary benefits your would be receiving for your patent.

If the company to whom you licensed your patent is significantly large and covers a wider market reach with its products or services, then after each sale (although a fraction of the cost of product) the money made by you would  spectacular if not significant.

The terms of payment and the percentage sharing would be decided on common agreement between you (patentee) and the company (licensee)


The approach: ideal way to search for such a business for licensing is

  • doing research and coming up with a list of companies who work in the field of your invention then
  • scheduling a meeting with the decision makers and
  • presenting them the plan about how this patented invention can be a good fit in their business and they can see significant growth in profits 

the most exciting part of this deal would be the monopoly you and your licensee going to enjoy for your patented invention !!!

in other words,

“when a business sees that licensing patented invention from you would be profitable and more over the competitors cannot compete with this product or service as it is patented… then companies would be more than willing to work with you almost every time”

Another option would be,

Selling your patented invention to a business 

Most of the things discussed in licensing option are applicable here too, the difference being the payment option. Instead of paying on monthly basis or paying royalties behind every sale the company would be more keen to buyout the patent rights from you at significant one time price.

In such case the money offered upfront to sell the patent rights could be significant and it would be your decision whether to negotiate further or accept the offer and sell all rights to the company.

 Getting funding for your invention 

If you have a patent protecting your invention then investors would be more keen to listen to you, and most probably would decide to invest with you. The reason being they speculate that if the product is successful, the competitors would not be able to compete as it is protected with patent, and hence there would be fair chance that investors would make good return on their investment along with your growth.

building business around it 

Another very popular way of making money with your patented invention is building business around patented invention.  Or may be protecting your existing business and invention by means of patents from competition.

This path is most rewarding and most traveled by entrepreneurs and business owners… and it is more promising as well as you are in complete control and the amount of money you are going to make is not dependent on an agreement with other party or how well other party does the business after licensing..

On the other hand there are many entrepreneurs who happen to found an innovative idea while working on some problems go for patent and end up making large sums of money by leveraging patent protection. And not to forget you can make money in one more way that is filing a suit of infringement and if it is proven in the court you would be rewarded with reliefs.

All this is applicable if your patented invention has commercial value in the market. That is the main essence of all this monetizing strategies.



Registered Patent Agent India (IN/PA 2352) with bachelors degree in electronics and telecommunication engineering. Working in patents and IPR field since 12+ years. associated with leading Intellectual Property firms in India Successfully helping inventors and businesses in securing their Intellectual Property Rights (IPR) including Patents, Trademarks, Designs & Copyrights along with Contract & Commercial Matters.