You Can Choose to License Your Invention

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What does an invention license company do?

You Can Choose to License Your Invention

A US patent protects an inventor from someone else making or selling his or her novel product. However, an inventor can give permission to someone else to use the invention through a patent license.

This protects the user from patent infringement but the licensee is required to pay the inventor royalty fees. These royalty fees vary in amount depending on the sophistication of the technology. For example, a patented drug often carries the highest level of royalty fees. A standard patent agreement should cover some basic items such as the territory covered, the license term, any restrictions and a way to terminate the agreement in case there is a breach by either party.

License agents and other invention companies also enter into agreements with inventors, offering them the service of introducing and marketing an invention at invention trade shows and through other avenues. Inventors enter such agreements because these companies have a proven track record of success with new products. If you enter any type of license agreement, make sure you are guaranteed detailed sales records and have an audit clause in the contract so you have access to these records if need be. That way, you can ensure you are receiving all the royalty money you should.

   

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