If the inventor planned on giving the invention away for free, why bother getting patent protection? So now the question becomes-
How can inventors make money off a patent?
The obvious answer is the inventor can use the patent to start producing a product and own their own business. This might work for some inventors, but as experienced patent lawyers we know that a lot of inventors just want to keep inventing instead of running a business.
For inventors in this situation there’s an option that allows them to make money without having to run a business. This option is known as licensing a patent.
When an inventor licenses a patent they work out a deal with a manufacturer or distributor and allow them to use the patent to make and sell the product. In exchange for access to the patent, the inventor will get paid royalties.
The deal between the inventor and manufacturer (licensee) can take a lot of different forms. Some deals will be for the life of the patent and others will only be for a set amount of time. In some cases the licensee can sublicense the patent to other manufacturers to produce more products.
Royalty arrangements will also vary from license to license. The inventor might get a percentage of every product sold, or the licensee might just pay an upfront lump sum.
Licensing a patent is a great way for inventors to make money and still have the time to keep inventing. However, creating the patent licensing agreement is not a DIY legal job. Be sure to call Arizona patent lawyers Parsons & Goltry to draw up the agreement so you know your patent is safe and sound.
"Our company has worked with a number of patent attorneys and were so pleased when we began working with Parsons & Goltry nearly a decade ago. Mike Goltry's knowledge and attention to detail has enabled us to have numerous products patented and trademarks registered. We highly recommend this Law Firm."
"Michael Goltry is the most professional, honest and effective patent attorney whom I ever met in my 40 year professional engineering career. I started to work with him over 20 years ago and plan to work indefinitely."
"Mr. Goltry took a provisional patent that we'd filed ourselves, and quickly and professionally turned our innovation into U.S. and foreign applications. His [patent claims] were a thing of beauty, and I was amazed by how deftly he countered the inevitable office actions. His language held up, and the U.S. Patent just issued. He was easy and efficient to work with, and his fees were remarkably reasonable. We're not planning to go anywhere else, ever."
"I applied for a patent through Parsons & Goltry. After being on the docket for 2 years at the USPTO, I received notification that my patent request had been denied. Michael Goltry contacted me immediately to review my options. After I informed him of my decision to move forward, he filed a response to the USPTO. In his response he got the examiner to fully understand the claims in the patent application and the "denied" decision was reversed. I was able to secure and receive a "patent granted" decision. Thank you, Michael Goltry."
10643 North Frank Lloyd
Wright Blvd. Suite 201
Scottsdale, AZ 85259
Phone: (480) 991-3435
Open 9-5pm Monday - Friday
Arizona’s premiere patent attorneys serving clients throughout the U.S. and internationally for almost 30 years.
Located in Scottsdale, Arizona, we serve clients locally as well as throughout the United States and across the world.