You’ve developed and patented your invention in Pennsylvania. Now, you need to figure out how you’re going to sell it. To bring your product to the mass market, you might want to sign off on a licensing deal with an investor. A licensing deal can give you the capital you need to introduce your invention to the general public.
What is a patent licensing deal?
When you patent an invention, you have complete control over your intellectual property. You’re the only person who can sell or manufacture your product; if anyone else tries it, they might be in violation of business law. But if you want your invention to be a success, you’re going to need some startup funds. That’s where licensing deals come in.
To start making money off your product, you’ll need the help of investors who have the funds to manufacture and market your invention. With a licensing deal, your investors will have the right to sell, use or manufacture your invention in exchange for providing you with funds. However, you don’t want to sign off the rights to just anybody. You might want to hire an attorney to help you make business decisions for your intellectual property.
When you negotiate an agreement with your investors, you’ll have to outline the rights that you’re signing over. You can keep the rights to a minimum if you want to maintain a high level of control over your patent. As part of the agreement, you’ll also receive royalty payments whenever the investors sell your product. Some royalty payments are decided by law while others can be chosen by the owner of the patent.
How might an attorney help you protect your rights?
An attorney may help you draw up and review contracts so that you know exactly what you’re signing off on. When you’re writing agreements, your attorney may help you write a contract that protects your rights and prevents investors from taking advantage of you. Your attorney might also help you bring the matter to court if negotiations break down between you and the investors.