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Factors To Consider When Selling Patents To Companies

By Kenya England


A patent is a document that grants the inventor the right to ownership of a patent. Owning a patent does not make one rich. The best way to make money is to sell the patent to companies that use them. Deciding how to sell and who to sell it is a challenge for most people. It is usually a hard decision to make, especially when there are several companies involved. Consider the following factors when selling patents to companies.

The first thing to consider is the reputation of the company that you are selling the patents. Reputation shows that they will honor their agreement. If they do not honor, money and time will be wasted in court cases. Before selling to them, get advice from referees. These are customers and other company who has bought or sold patents to the firm. Learn if their agreement was executed in the right way. If it was, then it means that they will honor the agreement made.

The other factor to consider is the reputation of the firm. The item sold to the company will have the same reputation as that of the firm. So first, consider the reputation to know if you would like it associated with the product. The best way to know about a firms reputation is by searching online. There are sites that give reviews about the companies. Read all the reviews and comments to make the final decision. You can also ask people who work there to offer information concerning the firm.

The other factor to consider is the price. The price should be fair. Do not sell if you are not comfortable with the price. Conduct research to find out the worth of the product and its valuation. This will set a limit to the amount that can be accepted. There are professionals who can help with valuating of the invention. Negotiate with the interested party until you reach a favorable agreement.

Hire a lawyer to help with the sale. Sale of patents can be tricky for the inventor or owner. This is because they do not know what it takes to make a successful sale. A lawyer who deals with patent issues is well placed to offer advice on what to do. They will also do due diligence so that the buyer does not turn out to be a fraud. Engage the lawyer in all the details and let them draft the agreement for sale. Engaging a lawyer makes it safe to sell.

For the firms that show interest, negotiate terms with them. Once there is a genuine buyer, go ahead and negotiate the about the details of the agreement. Negotiation is the most important part when it comes to sales. The negotiation skills are what will determine the amount of money you get. You will have to convince them to accept the terms of sale. If they do not offer favorable terms, stand on your ground until both parties can agree on terms favorable to them.

Do research about the firm. There is need to know more about the history and how they used the previous inventions, they bought. With such information, it will be easy to know how your invention will be used. Through research, it will be easy to identify the firms that can utilize the patent.

There are many factors to consider before selling to a company. With proper evaluation and negotiation, it will possible to sell it to a company with the best offers. Make consideration of the above factors when selling.




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