License Your Invention
Licensing means that you will continue to own your own invention,
however, you rent out the rights to make, use, or sell your invention.
You can give an exclusive license to one party, or a non-exclusive
license to more than one party.
You can set a time limit on the license or not. In exchange for the
rights to your intellectual property, you can charge a flat fee, or
collect a royalty for each unit sold, or a combination of the two.
It should be noted that royalties are a much smaller percentage than
most inventors would guess they should be, often under three percent
for first-time inventors. That fact should not be surprising, the
licensing party is taking a financial risk and it is quite an
undertaking to manufacture, market, advertise, and distribute any
product. More about licensing in our next lesson.
Do it Yourself
To manufacture, market, advertise, and distribute your own
intellectual property is a large enterprise. Ask yourself, "do you
have the spirit necessary to become an entrepreneur?" In a later
lesson we will discuss business and business plans and provide
resources for conducting your own.
Independent inventors may decide hire help for marketing or other
aspects of promoting their invention. Before making any commitments to
promoters and promotion firms, you should check on their reputation
before making any commitments. Remember, not all firms are legitimate.
It is best to be wary of any firm that promises too much and/or costs
too much. |
