Things to Know Before Hiring Patent Broker

If you own a patent and are considering selling or licensing it, whether or not to hire a professional patent broker is a decision you will have to make.  Although most brokers work on a contingency fee, some will also charge an upfront fee to cover their costs if the patent does not get sold or licensed.  You also should realize that not all patents get sold or licensed.  Typical success rates are 25-35%. Good patent brokers can increase this success rate, based on their experience in the area and the contacts they have at patent buying companies.

Image source: tynax

If you want to try and sell or license you patent by yourself, you will have to wait until the patent issues, because most companies will not review patent opportunities until there is an actually issued patent.  You then can submit your patent through a company’s patent submission portal or try to find someone at the company who job it is to review outside patent opportunities. Both of these techniques don’t always provide results. Most good patent brokers earn their fees because the know these internal patent reviewing people personally or can find out easily through their contacts.  A patent broker also brings knowledge of how to create a marketing package for a patent, how to make sure the right companies review the patent, how to price the patent, and how to negotiation a patent purchase or license contract.

Hire Professionals:

Some items to consider:

  • Are they experienced? Who are some of the companies they have completed agreements with?
  • Ask for an example of a marketing package
  • Make sure you get to review the marketing package on your patent and the companies it will go to.
  • Ask for references at the appropriate time but be prepared that most deals are confidential and the broker may not be able to give references.
  • Make sure you understand the most brokers do no provide legal services and you may need to get a lawyer to review your final contacts. The broker can help negotiate the contract and minimize the amount of time an attorney needs to spend on it thus saving you money.

Know the difference in licensing your patent and selling your patent rights

Selling your patent is like selling your car, typically a one-time fee and an assignment of title.  A license is where you grant rights to use your patent in the producing a product, typically in exchange for some up-front fee and a running royalty.  Today a lot of companies would rather buy a patent and pay a reasonable sum rather than pay an ongoing royalty.  This is due to several reasons such as, the company may or may not want to produce the product and only want the patent for offensive purposes.  Another is that the resulting product may have several patent technologies and stacking a lot of royalties on top of each other would make the product uneconomical.

Selling a patent can result in the shortest time to money.  Licensing can make more money if the royalty bearing product is wildly successful.  A big “If”.

One other way to monetize your patent is to allow another entity to enforce it against infringing companies.  This can be very lucrative if it is successful, but again there are a lot of “ifs and pitfalls” in this monetization technique.  A good Patent broker can help you sort out the pros and cons of all these techniques; again earning their fee.

49 COMMENTS

  1. I know this if off topic but I’m looking into starting my own weblog and was curious what all is required to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet smart so I’m not 100 sure. Any suggestions or advice would be greatly appreciated. Thank you

  2. After I initially left a comment I appear to have clicked on the
    -Notify me wwhen new comments are added- checkbox and from now on every
    time a comment is added I receive 4 emwils with the exact
    same comment. There hhas to be a means you can remove me from that service?

    Cheers!

  3. I got this web page from my buddy who shared
    wih me about this web page and now this time I am browsing this site and reading very informativge
    aeticles or reviews here.

  4. Hmm is ayone else having problems with the images on this
    blog loading? I’m trying to figure out if its a problem on mmy end or
    iif it’s the blog. Anny suggestions would be greatly appreciated.

  5. hello!,I like your writing very a lot! share we keep in touch
    more approximately your post on AOL? I require an expert on this
    space to unravel my problem. May be that is you! Looking ahead to look you.

  6. We stumbled over here by a different web address and thought
    I may as well check things out. I like what I see so i am just following you.
    Look forward to looking at your web page again.

  7. Today, I went to the beachfront with my kids. I found a sea shell
    and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell
    to her ear and screamed. There was a hermit crab inside and it pinched her ear.
    She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

  8. 154953 30156Naturally I like your web-site, nonetheless you require to check the spelling on several of your posts. Many of them are rife with spelling problems and I uncover it extremely silly to inform you. On the other hand I will undoubtedly come again once again! 868986

  9. Have you ever thought about publishing an ebook or guest authoring on other
    sites? I have a blog based upon on the same information you discuss and would love to have you share some stories/information.
    I know my subscribers would appreciate your work. If you are even remotely
    interested, feel free to shoot me an e-mail.

  10. Hey superb website! Does running a blog like this take a lot of work?
    I have very little knowledge of programming but I had been hoping to start my own blog soon. Anyhow, if you have any ideas or tips for new blog
    owners please share. I know this is off subject nevertheless I just needed to ask.
    Thanks!

  11. It’s very easy too find out any matter on net ass compared to books,
    as I found this piece oof writing at this website.

  12. 786751 100471This internet site is often a walk-through like the information you wanted in regards to this and didnt know who to question. Glimpse here, and you will definitely discover it. 264800

  13. Nice blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple tweeks would really make my blog shine.
    Please let me know where you got your theme. Appreciate it

  14. 820828 864391The Twitter application page will open. This really is great if youve got several thousand followers, but as you get far more and much more the usefulness of this tool is downgraded. 196067

  15. I feel this is among the most important information for me.
    And i’m satisfied reading your article. But want to remark on some normal issues, The site taste is perfect, the articles is really great : D.
    Excellent process, cheers

  16. Thanks for your personal marvelous posting! I truly enjoyed reading it, you’re a great author.I
    will be sure to bookmark your blog and will eventually come back at some point.
    I want to encourage continue your great posts, have
    a nice weekend!

  17. I don’t know if it’s just me or if perhaps everybody else encountering problems with your blog.
    It looks like some of the written text in your posts are running off the
    screen. Can someone else please comment and let me know if this is happening to them too?
    This might be a issue with my browser because
    I’ve had this happen previously. Thanks natalielise plenty of fish

  18. Greetings I am so delighted I found your website, I really found you by error, while
    I was searching on Askjeeve for something else, Anyways
    I am here now and would just like to say kudos for a fantastic post and a all round interesting
    blog (I also love the theme/design), I don’t have time to look over it all
    at the moment but I have bookmarked it and also included your RSS feeds, so when I have time I will be back to read a lot more, Please
    do keep up the excellent job.

  19. Good day! I could have sworn I’ve been to this blog before but after checking through some of the post I realized it’s new to
    me. Nonetheless, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!

  20. Hey there, I think your blog might be having browser compatibility
    issues. When I look at your blog site in Ie, it looks fine
    but when opening in Internet Explorer, it has some
    overlapping. I just wanted to give you a quick heads up!
    Other then that, very good blog!

  21. Nice blog here! Also your web site loads up fast! What host are
    you the usage of? Can I am getting your affiliate hyperlink to your host?
    I wish my web site loaded up as quickly as yours lol

  22. I would like to thank you for the efforts you’ve put in writing
    this blog. I really hope to see the same high-grade blog posts from
    you in the future as well. In truth, your creative writing abilities has
    encouraged me to get my very own site now ;)

  23. Whats up this is somewhat of off topic but I was wanting to know if blogs use
    WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding skills
    so I wanted to get guidance from someone with experience.
    Any help would be greatly appreciated!

LEAVE A REPLY

Please enter your comment!
Please enter your name here