Adjust your Speaker to Hear Audio Narration : Adjust your Speaker to Hear Audio Narration
Monetizing Your Patents Ten Techniques for Turning Patents into Profits : Monetizing Your PatentsTen Techniques for Turning Patents into Profits
Why Monetization is Not Easy : Why Monetization is Not Easy Establishing channels to sell products is expensive & takes years.
Selling licenses requires a sales team & effort.
Infringement is often difficult to detect.
Infringers are often difficult to find.
Enforcing patents requires armies of lawyers & legal fees.
Top Ten Techniques : Top Ten Techniques Sale of Products
Sale of Patents
Patent Sale with License Back
Selling Patent with Revenue Share
Selling Enforcement Rights Only
"Friendly" Licensing
"Threatening" Licensing
"Semi-Threatening" Licensing
VC Investment with Strings
IP-Backed Loans
What is a Patent? : What is a Patent? The right to exclude, not right to use.
You Do not Have the Rights to Use your own patented invention.
As Elements of your invention may infringe other patents.
Monetization: Selling Products : Monetization: Selling Products "Our products are unique as they are backed by our patents".
Advantages
Product differentiation.
Disadvantages
Restricted by your sales channels.
What’s Involved
Establish complete product sales operation.
Good Candidates
Large corp. with sales channels
Sale of Patents : Sale of Patents "We'll buy your patents outright".
Advantages
Relatively quick & high returns.
Disadvantages
Give up future potential.
What’s Involved
Listing & marketing.
Good Candidates
Patent holders lacking products or sales channels.
What Patents Sell For : What Patents Sell For Patent invalidated or expired Known infringers $0 $10k-30k $30k-100k Patent
Acquisition Value in US$ $100k-$0.5m $0.5-1m $1m+ A B C D E Not litigated No licensees No broad claims Not litigated Broad claims Large market Several competing buyers Fortune 500 infringers F Litigated & won Litigated & won Pending (unissued) patent applications: value is triggered when patent is approved. Value is contingent on approval. Industry-standard
Patent Sale with License Back : Patent Sale with License Back "We'll buy your patents and give you a license to continue selling your products that use them".
Advantages
Cash now without giving up product line.
Disadvantages
May enable competitors.
What’s Involved
Listing & marketing patent.
Good Candidates
Product companies without army of lawyers.
Selling Patent with Revenue Share : Selling Patent with Revenue Share "We'll buy your patents and share any subsequent licensing revenue with you".
Advantages
Cash today & cash tomorrow.
Disadvantages
Lower up-front payment.
Can be complicated.
What’s Involved
Sale with revenue sharing agreement.
Good Candidates
Operating companies divesting of infringed patents.
Selling Enforcement Rights Only : Selling Enforcement Rights Only "We'll enforce the patents for you. We pay the costs and split the proceeds with you".
Advantages
Revenue without “selling”.
Disadvantages
May be joined in infringement suits.
What’s Involved
Exclusive license with right to enforce, right to join & indemnification.
Good Candidates
Research labs & universities.
"Friendly" Licensing : "Friendly" Licensing "Would you like to license our patents?“
Advantages
Reputation as being “nice”.
Disadvantages
Ineffective.
May trigger declaratory judgment suits.
What’s Involved
Searching for licensees.
Often exclusive rights sold.
Good Candidates
Corporate strategic licensing groups.
Academic OTL’s.
"Threatening" Licensing : "Threatening" Licensing "If you don't license we'll sue you for infringement!"
Advantages
Grabs attention.
Can be very effective.
Disadvantages
Led by lawyers. Adversarial.
Costly.
What’s Involved
Finding infringers. Filing lawsuits. Negotiating.
Good Candidates
Corporations with huge legal teams.
Those with little to lose.
"Semi Threatening" Licensing : "Semi Threatening" Licensing "Would you like to license our patents? We do plan to enforce them.“
Advantages
Can be effective.
Disadvantages
Can confuse the licensee.
Can trigger declaratory judgment suits.
What’s Involved
Identifying infringers & carefully approaching them.
Good Candidates
Patent holder with legal resources to pose threat.
VC Investment with Strings : VC Investment with Strings "We'll invest in your company if we can partner with you to enforce your patents".
Advantages
Preferential investment terms (to VC).
Disadvantages
May upset your competitors.
What’s Involved
Finding investor, negotiating terms.
Good Candidates
Startups with infringed patents.
IP Backed Loans : IP Backed Loans "We can use your patents as collateral for a loan/credit line".
Advantages
Source of debt-capital.
Disadvantages
Encumbers patents.
What’s Involved
Find lender. Valuation. Loan with security.
Good Candidates
Corporations with good credit rating.
Not for small companies.
Monetizing Your Patents Ten Techniques for Turning Patents into Profits WWW.TYNAX.COM : Monetizing Your PatentsTen Techniques for Turning Patents into ProfitsWWW.TYNAX.COM