Strategies for making money with your Patent
Strategies for making money with your patent are: licensing your patent to a business to receive royalties, selling your patented invention for a significant one-time price, seeking funding from investors, Build a business around your patent for complete control and potential profits.
Table of Contents
- Strategies for making money with your Patent
- Book : “How to make money with your patent”
strategies for making money with your Patent
Monetizing your patented invention… This is the moment that makes:
- all of the 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.
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”
let’s see strategies for making money with your Patent one by one
Licensing your patent to a business
This is the way preferred by most inventor who comes from a 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 the 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 moreover 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 a 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.
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 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.
For more details read How to sell patent or license patent in India ?
- Indian Patent Office, Govt. of India
- Patent Facilitator for Start-ups, Startup India Govt. of India
- Bachelor’s degree in Electronics and Telecommunication engineering.
- Author of multiple books on Patents and IPR including a best-selling book on “How to patent an idea in India” which has been selected as the “Memorable Business Book of 2018” by Amazon
- Books are included in the syllabus of Educational Institutions as textbook and reference book on subject of IPR and Patents
- For over 15 years, Prasad has helped protect the intellectual property rights (IPR) of more than 1800 clients, including individuals, entrepreneurs, and educational institutes. This includes patents, trademarks, designs, and copyrights.