INVENTION LICENSING

Invention Gear is dedicated to informing inventors, to help them navigate through the often frustrating challenges associated with inventing, prototyping, patenting, marketing and licensing their invention.

Invention Licensing: Leasing Your Invention

Invention licensing can be one of the most lucrative ways for an independent inventor to bring their invention to market.

Basically, invention licensing is like leasing the intellectual property of your invention to a company who then produces and sells the invention and pays the inventor a percentage of sales.

For inventors who either do not have experience manufacturing inventions themselves or who simply do not have the money to manufacture the invention, invention licensing becomes a great strategy to make money from an invention.

Invention Licensing: A Win-Win Scenario

Invention licensing, when structured correctly, creates a win-win scenario between inventors and companies who are always in need of new inventions.

In fact, with the increasing pace of innovation, invention life cycles continue to shorten and so invention licensing becomes a way companies increase the size of their product offering.

By licensing the invention, the inventor then leverages the companies recognized brand, position in the marketplace and distribution channels to achieve high volume sales for their invention much more quickly.

Invention Licensing: Royalties

For an invention licensing deal, the company would pay the inventor either a percentage of sales or an amount per unit, called a royalty.

Thus, once an inventor achieves the invention licensing agreement, the company performs the work and the inventor gets royalty checks every month or quarter.

That alone is a strong argument on why an inventor should license their invention.