Patent Licensing – Everything You Need To Know

After you have secured the patent rights for your invention, you must try to monetize your patent to generate a new stream of revenue through patent licensing. Patent Licensing is the process of signing an agreement with the third party to allow them to use your patent invention in exchange of royalty.

To understand it better, the patent owner grants license to third party to make use of patented invention for an amount which is known as royalty. The patent owner transfers his rights on patented invention for a specific period of time which is mutually decided.

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What are the Benefits of Patent Licensing?

Now that you know what Patent Licensing is. It is time you gained some insight into how it is beneficial for you. Take a look at some of the benefits of patent licensing.

International Market

Patent licensing helps in improving market reach. In short, it can take your product to new places and your product can reach wider-audience. If the licensee has a wider-reach in the market, the production will be huge and reaches to broad spectrum of customers. In some cases, your product may enter international market as well.

New Income Stream

The patent owner can generate a stream of income by licensing his technology to new entity. In exchange, the licensee will pay you a certain amount as royalty. Not only this, you will get your share in the profits.

Ownership Rights

Licensing allows you to transfer your patent rights for a certain period of time which is mutually decided. You can transfer the rights to complementary business, competitors. However, the ownership rights are still with you.

No Investment Needed

The licensee will have to bear with the cost of packaging, distribution, marketing to bring product to the market. Thus, you don’t have to find money to commercialize your product and take it to the market.

Different Types of Patent Licensing

There are different types of patent licensing available. Let’s take a look at them in order to understand it better.

Exclusive License

It is the type of license in which the patent rights are transferred to the licensee. The licensor still holds the title of Patent holder. The licensee gets the whole of the patent rights which means that the licensee can not further license this. The entity (licensee) has the monopoly over the market. In this type of patent licensing, the possibility of patent infringement is negligible.

Non-Exclusive License

In this type of patent license, the patent holder can grant license to more than single entity. The licensee can use the technology to control the market.


Another type of patent licensing is Sub-License. This type of license allows licensee to license the patent to other entities. However, the original party must have knowledge about this.

Compulsory License

The intervention of government to allow other entities to create and sell product without the will of patent owner for the public benefit is called Compulsory License. This is applicable in pharmaceutical cases. The patent owner does not get to have his/her say in it. The government selects the entity to grant the license.

Voluntary License

This is just the complete opposite of Compulsory License. The patent holder grants license to help out the public or society voluntarily.

Need Help With Patent Licensing? Patent Drafting Catalyst

Patent Licensing can benefit you incredibly. However, you need to conduct an extensive search to find the licensee. Thus, it is a great idea to hire a patent attorney who can help you with that. This can be a tedious task if you are alone or new to this. That’s where Patent Drafting Catalyst comes into existance.

As a part of our services, we provide patent monitoring services. Our team constantly monitors the latest patents and regular provides you update about the same. As a part of our client base, we have catering to needs of clients residing across the globe. We provide end to end support throughout the patent prosecution cycle.

To know more about us or our services, get in touch with us.

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