The process of obtaining a patent can be expensive and time-consuming. Estimates vary, but the cost to obtain a patent on even a relatively simple invention can run about $8,000 and takes an average of about two years. Those are significant amounts of time and money, especially for small businesses, but the benefits of patent protection can quickly pay off. Patents are property rights at heart and, just like with real estate, there are many ways for patent owners to monetize their patents. An Alabama patent attorney can help you devise a strategy that works best for your company.
Manufacture and Sell Your Patented Invention on the Market
The most obvious patent monetization strategy is to use your patent to manufacture and sell your patented invention on the market. If you have a hit product or one that is in demand in your sector, you can use your patent to exclude others from manufacturing and selling it, thus establishing a dominant position in the market. A major drawback to this strategy is that not all businesses have the resources to manufacture and sell their patented products themselves.
License Your Patents
If you do not have the capacity to manufacture and sell your patented product using your own resources, another popular patent monetization strategy is to license your patent to a business that does. A license allows you to retain ownership of the patent while outsourcing the manufacturing and selling of it in exchange for a royalty. You can even maintain multiple royalty streams by licensing your patent to multiple parties.
Enforce Your Patents Against Infringers
Patent infringement occurs when another party makes, uses, or sells a patented invention without the permission of the patent owner. If you become aware of patent infringement, you can pursue a patent infringement action against the alleged infringer to obtain a reasonable royalty and lost profits. You can pursue infringers even if you are not actively making, using, or selling your patented invention — remember, a patent is a right to exclude others from the invention claimed in it.
Leverage Your Patents for Investment, Partnership, and Acquisition
The primary goal for many early-stage companies is not necessarily to “make it big” in the traditional sense, but rather to be acquired by a larger, more established company. The value of a company’s IP assets is often of primary importance to investors and accounts for a large share of a company’s value. If you have a strong patent portfolio, you can leverage it to attract investment, partnership, and acquisition offers.
Contact an Alabama Patent Attorney for More Information about Patent Monetization Strategies
A patent monetization strategy is essential for maximizing the value of your patent portfolio. But there is no one-size-fits-all approach; your patent monetization strategy needs to take into account your unique assets, your market position, and your long-term goals. To get started on crafting a patent monetization strategy that works for you, please contact an Alabama patent attorney at AdamsIP by calling 251-289-9787 or by using our online contact form. We assist clients throughout the state including Mobile, Huntsville, and Birmingham.