Why Should You Consider Licensing Your Invention?
Incredible new inventions are surfacing every day, but unfortunately, most of the inventions never see the light of day. That’s because inventors too often fail to take the necessary steps to bring their idea to fruition. This includes manufacturing, mass producing, marketing, and distributing the product to a global audience – and this is no easy task, especially when you’re going it alone. That’s what makes licensing such a great option. Licensing allows you to rent your patent rights to a licensee, who will then manufacture, market, and distribute your product for you.
1. Offset Startup Costs
Perhaps the greatest benefit of licensing your invention and other intellectual property is that another company becomes in charge of commercializing your product, lifting a great burden from your shoulders. The licensee will now be in charge of buying the raw materials needed to mass produce your invention, and paying for various government licenses required to sell it. Inventory management, distribution, sales, customer servicing, and marketing are also handled by the licensee. All you have to do is sit back and receive substantial quarterly royalty paychecks every year.
2. Licensing Opens Up Several Opportunities
Once your invention has been mass produced and sold, you now have a business relationship based on trust with a reputable licensing company. This gives you more time to focus on inventing, and gives you a familiar and effective avenue to sell future invention ideas. Given your existing relationship, your new ideas will e placed at the front of the queue, and you’ll likely hear back immediately feedback from your partners.
3. It Frees Up Your Schedule
Most inventors have little to no idea about how to successfully manufacture and sell an invention. It’s simply not their area of expertise. Identifying the raw materials required to make the invention, and finding the capital to fund the purchase of these materials can often be significant roadblocks. When inventors license their ideas to larger companies, however, they do not have to worry about capital, materials, marketing, and selling. They simply concentrate on what they do best, which is focusing on coming up with creative invention ideas.
4. Passive Income
The reason so many inventors covet a licensing deal is because of the large quarterly royalty checks paid by licensees to. With these earnings, inventors have the option of creating more products of their own and having the capital to invest in more expensive resources that they previously couldn’t afford.
To learn more about the licensing process, and what it involves, reach out to us today. If you believe your product is ready for licensing, or could benefit from the assistance of true industry professionals, contact us for a free product evaluation.