Patent Monetization refers to accumulation of the revenue using various strategies such as patent licensing, selling of patents. Other than that, the owner with a wide patent portfolio can enforce the patent rights against the infringers to make profit. Making money out of the patent portfolio has become a common practice. There are different ways through which the rightful patent owner can generate revenue using the IP portfolio.
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Understanding The Different Ways To Monetize Your Patents?
Incorporating the right patent monetizing strategy can pave a new path for you to generate a new stream of revenue. Take a look at various ways through which patents can be monetized.
- Licensing – Patent Licensing is the most popular and common ways through which the patent owners can monetize their patents. Patent Licensing refers to the act of granting permission to other party to use your invention. In exchange, the patent owners will receive royalty for a fixed period of time. There are different forms of patent licensing which includes Exclusive License, Non-Exclusive License, Sub-License, Cross License and Compulsory License. Licensing Patent comes with a series of benefits. To begin with, the licensed product gains a competitive edge when compared with other patents. Additionally, the licensed product may get the global presence.
- Enforcement – Another way to monetize the patents is by reporting the unauthorized use of patent. Enforcing the patent is a long and time-consuming procedure which is why the owners must consider factors such cost, time, infringement entities prior to enforcing patent. To avoid such things, the owner begins with negotiating with the infringers to pay a certain license fee.
- Selling of Patents – Selling the patent is one of the quickest ways to monetize your IP. Once the owner has decided that he wants to sell a particular patent, he can simply sale the patent to buyer. The owner may lack the infrastructure to make use of the invention that has high value. Selling it to another company that has the right resources and infrastructure can generate revenue for you. The value of a patent is determined after considering the range of factors such as nature of invention, competition analysis, infringement, quality of protection.
- Patent Pool – It can be defined as the agreement between two parties to allow the use of the patents owned by them. Patent Pool makes it easier for parties to license their patents, thereby, generating cash. The licensing rates are reasonable, helping the licensees to access the patents.
Things You Should Focus On During Patent Monetization
When it comes to patent monetizing, there are factors that the owners ignore or totally forget about it. Take a look at what you should be focusing on when planning to monetize patents.
- IP Valuation – The first thing that the patent owners overlook is conducting IP Valuation. Conducting IP valuation will help in determining the worth of your patent. While assessing the present worth of a patent, there are a few things such as nature of invention, competitor analysis are taken into account. IP valuation helps in getting the best value for your patent. If you are unaware of the worth of your patent, you may get value less than the present worth of your patent.
- Choosing The Right Strategy – Patent can be monetized in different ways. So, it becomes essential to understand what strategy will yield more money for your patent. Is selling the patent a good option? Prior to monetizing patent, ask yourself if you should be going with patent licensing. The owners do not realize the importance of adopting the right strategy. Choosing the right strategy will help in maximizing the ROI.
- Partnering with a right firm – Patent Monetization requires brainstorming your ideas, and involves a lot of technical and non-technical aspects, making it a complicated path to navigate on your own. Partnering with a right firm can help you in obtaining the maximum ROI. The right firm will have a deep understanding and hands-on experience when it comes to monetizing your patents.
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So, these are some of the important things you should focus on while monetizing your patents. The ignorance of any of these factors could cost you a lot of time and you may have to settle for less.
Who Are We – Patent Drafting Catalyst
Patent Drafting Catalyst is a team of experts who have been helping clients in managing their IP portfolios. The experienced and core team members devise various strategies to figure out what patent monetization strategy works best for you. Our team has extensive experience when it comes to patent monetization. With our expert’s insight and various IP analytical tools, we help you make the most of your IP Portfolio.