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  • Writer's pictureJeremy Rutman

PATENT LICENSING - MAKING IT PAY

Updated: Apr 17, 2023



Patents grant the owner exclusive rights to use, manufacture, and sell an invention. That last option opens the door to the world of licensing - a common practice that allows a patent owner to monetize their invention by granting permission to others to use it in exchange for a fee or royalty.


A number of options exist for finding audiences interested in your IP - we've divided this somewhat arbitrarily into free marketplaces/databases, for-pay options, commission-based brokerages, those focused specifically on patent owners, and a few others.


IP marketplaces :

free


for pay

brokerages

specifically for patent owners

https://www.ast.com/ defensive buyer of IP


others


Licensing Options

Here are some of your options for licensing patents:

  1. Exclusive licensing: This type of licensing gives the licensee the exclusive right to use the patented invention within a specific geographic region or industry. In return, the licensee pays the patent owner a fee or royalty for the duration of the license.

  2. Non-exclusive licensing: This type of licensing allows multiple licensees to use the patented invention, with each licensee paying a fee or royalty to the patent owner. Non-exclusive licensing can be a good option for patent owners who want to maximize their revenue by licensing their invention to multiple parties.

  3. Cross-licensing: This type of licensing involves two or more parties licensing their respective patents to each other. Cross-licensing can be an effective way for companies to share technology and reduce legal disputes.

  4. Compulsory licensing: This type of licensing is granted by a government authority and allows a third party to use a patented invention without the permission of the patent owner. Compulsory licensing is typically used in cases where the patented invention is deemed necessary for public health or safety, or where the patent owner is found to be engaging in anti-competitive behavior.

  5. Defensive licensing: This type of licensing is used to protect a company's intellectual property from potential infringement lawsuits. By licensing their patents to other companies, they can deter others from filing patent infringement lawsuits against them.

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