Patent Attorney and Founder
Let’s talk about the difference between an exclusive patent license and a non-exclusive one.
First, a quick note: our firm doesn’t usually handle licensing agreements day-to-day. We focus more on securing patents. But since we’ve brought in an attorney who works in this area, I’ll give you the basics.
When you own a patent, you hold four key rights:
- the right to make it,
- the right to use it,
- the right to sell it,
- and, maybe the most powerful, the right to stop others from doing those things.
Licensing is about deciding how, and to whom, you share those rights.
An exclusive license means you hand those rights to one company or person. They’re the only ones allowed to make or sell the invention. The upside? They often take on responsibilities like enforcing the patent if someone infringes. But there’s risk too. If that company shelves your product and never brings it to market, you’re stuck, unless you’ve built in a performance clause that lets you walk away. In short: more reward, but more eggs in one basket.
A non-exclusive license is simpler. You can grant the same rights to multiple manufacturers, distributors, or retailers. That way, you spread the opportunity out and can collect royalties from different players. Less risk, but each licensee has less skin in the game.
The same idea applies on the trademark side. You can license a brand to one company only (exclusive), or to many (non-exclusive). It just depends on how much control you want and how much risk you’re willing to take.