Now that you have protected your innovation with that much awaited patent, did you know that you can reap profits from it or perhaps add more revenue channels? Patent, the word to an ordinary individual means something related to Science, especially after watching the movie “3 Idiots” or the Hollywood movie “Flash of a genius”.
Did you notice that the movie “3 Idiots” shows that the Japanese MNC, represented by Chatur Ramalingham, wants to associate with the Scientist, “The Funsukh Wangdu”, who has patented 400 Ideas, Products and Innovations, so that they can monetize the Patents, start new businesses and earn huge profits! Or get into joint venture since they wanted to have a prolific inventor work with them.
Beyond protection there is more that you can achieve from your patent. Not only does it safeguard all the investments and the initial cost that went into the creation, it also makes sure that your product is safely introduced in the market. The recognition that comes with it is just the icing on the cake, the crust being the power of monetizing it to enjoy the returns.
Patents are intangible assets that can become business assets with a little effort and knowhow. The key is commercialization or monetization of patents to generate revenue. It is important to know the many ways in which you can go about monetizing your intellectual achievement. The most common procedures that you can make use of are as listed.
1. Selling the patent – Yes, patents can be bought and sold, like any other form of tangible property. If you are willing to forfeit your ownership of the patent, then selling it is the easiest of the ways. It is the oldest and the most common way of monetization. If there is scarcity of time, then you can engage a patent broker. Patent brokers act as intermediaries associated with a network of buyers, like institutions that aggregate patents. But such buyers might be limited to a particular technology type, it is therefore important to ensure that the network of the broker that you have selected matches your niche area. Another way of selling is by a public auction. For this, prospective buyers are identified and the price is decided by bidding.
2. Licensing – If you do not want to lose the ownership of your patent, then you can license it to companies that are interested in your innovation. You get a royalty of 5-20% on the sales of your technology, and it holds good as long as the patent is valid. If the usability of the innovation is high, then licensing results in higher monetary benefits than that on selling.
3. Going the offensive way- If lawsuits do not scare you, then looking out for technologies that infringe your patent can serve as another major way of getting high monetary returns. If you find your patent being infringed, you have the option of either offer to license your innovation to the infringer, or file for infringement damages.
4. Be kind, make a donation- The major benefit of donating the patent to an appropriate organization, like a university or any non-profit organization, is that it reduces tax liability.
Owning a patent gives you a lot of opportunities, all you have to do is be a little adventurous and explore! Protection is just one side of the coin. Flip it and you will find an ocean of benefits that come with the patent package. Keeping the do’s and don’ts of monetization in mind can be the stepping stone of getting the worth out of the sweat and blood that you put in your innovation.
Monetization is a common practice in most of the IP developed countries (US, Europe, China), whereas in India, it is an unexplored piece of fertile land. There are so many highly utilizable Indian innovations that if commercialized can give high returns. Yours might be one among those many under-utilized patents. So it is time to broaden the spectrum and explore what all you can do with you patent.
Inolyst is proud to create a new marketplace to exploit opportunities of monetizing your patents. Contact a member of our team if you have an interesting patent –www.inolyst.com