MAY 14, 2021
Provisional Patent Applications
Provisional patent applications can be a good first step in commercializing an idea. Now a patent, whether it is a provisional or a nonprovisional, is not the sole answer in making money on an invention. A patent is only as good as the business plan behind it. If you don’t have a business plan, the patent isn’t going to likely be worth much. There are a few routes to take when deciding your business plan behind your idea.
Executing a license agreement
The first and most common business plan for independent investors is finding a larger party who will license the invention. Executing a license agreement with a larger party is important to do correctly. There are many pitfalls which an inventor can step into while pursuing a license agreement. If you do it wrong, the inventor can end up with very little to show for it. An example of something going wrong in the licensing process is if an inventor was to agree to a license where they simply get paid a royalty in return for an exclusive license. The licensee in such a situation could turn around and simply shelf the idea. If there are no teeth in the agreement to ensure some minimums, the licensee can take such action with no consequences.
Manufacture and market the invention
Another business plan which is common to independent inventors is to manufacture and market the invention. Marketing an invention can be extremely expensive and complicated, especially as sales volume increases. Sometimes, it works well for an inventor to begin producing a product on a very limited scale to establish market demand and some level of a proven track record.
We at Fargo Patent and Business Law have experience running businesses and understand business. This unique trait can help bridge the gap between the needs of business and the demands of the legal system. If you have a question, please don’t hesitate to reach out.
Fargo Patent & Business Law, PLLC – in**@fa************.com – 701-566-7571