Deciding on how to sell an invention can be a challenging process. It’s estimated that independent inventors spend over $300 million a year on patenting and marketing new inventions, so there are many services available to cater to this large demand.
For example, some courses are available which guide inventors through the sales process. There are also online networks that help match inventors and investors who want to buy patents outright. As an inventor, it’s important to do your homework before signing up for any service, especially those which require you to pay a fee.
Research to determine the value of your product and the market for your product in advance can be of great value. Some experts advise getting a provisional patent which will protect an idea as “patent pending” for one year, and during this time tweaking the product and marketing it to producers.
In the process of invention selling, the first step is to find a manufacturer to produce your product. When you have located a company that loves your idea and will make a suitable partner, there are two propositions that you can offer to them.
The first is an offer to sell your intellectual property outright to the company. In this case, you sell your ownership, patent rights and any other rights associated with the invention. The payment is often a relatively large lump sum amount.
The other option is to enter a licensing agreement with the partner company instead of selling your rights, in return for a stream of royalty payments. The partner company will agree to pay a royalty fee to you for each product sold which is based on your intellectual property.
Online networks can help connect inventors with production companies, and this is a good place to begin the process of invention selling.
