Patent Attorney and Founder
Hi I’m JD Houvener your host of the bold today show for you the adventure entrepreneur business owner get your daily dose of inspiration world a better place yesterday we talked about a different way to make money right licensing today we’re going to talk about selling before we get there I want you to think about patent licensing before move on patent licensing is a way for one component manufacturer to actually get to the final product in the consumers hand think about even small components and how they might need to be licensed by a larger manufacturer that needs those little components to make the final product see if you can put down an interesting example for all of us to read through as you start to think about wow this product maybe it’s a remote control or a computer or a cell phone how it actually probably is made up of hundreds of licensing agreements with those little tiny components inside of them whether it be memory or cameras or maybe a circuitry that needs to be created from from another vendor they had to get a license in order to put that in their final product that made it on the shelves and in the consumers hand so this third day of our series on how to make money in patents is all about patents selling selling the patent outright right making it a clean scape there’s a very very probably simplest way to transact i patent it is 100 percent sale now a true 100 percent sale of a patent is actually quite rare usually what comes with it is a license back to the original inventor it gives a couple things for the original inventor it enables them to tinker around with that original invention and it gives them the right to create derivative works and keep on making it so they can kind of think about future innovations it’s a wonderful way to structure the deal so that if that inventor comes up with the next generation the next version of that invention they can also sell that to the same person that bought the underlying path secondly if they ever wanted to make a the same product just for their own use you know if they really figured out that it was good for their own company they could certainly keep on using it without having to seek a license from the company they just bought it from it saves in having to do just one transaction as opposed to having to do a sale then do a license it all happens as part of one agreement as I touched on yesterday a little bit with licensing with sale some people get confused with selling the actual patented product quite different right selling the patent is meaning you’re giving up all rights to excluding others to make you seller import to someone else you’re assigning those rights to another party whereas just selling a pad meaning selling the product under your own patent is certainly very different so as long as that’s clarified I’m happy so if you learned anything today if you wanted to forward this onto someone who might be curious about patent law please send us along pay it forward I’m your host JD Houvener and I hope you all have a wonderful day go big go bold
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