Is your lifelong dream to become an inventor who will come up with great innovation and resolve a burning problem in the world? And while at it, to earn some serious money? If that?s the case, there are certain things you need to know before you decide to become an inventor and patent your invention.
In recent years patent applications have been growing strongly. However, with the outbreak of the pandemic, the applications have seen a slight decline compared to the previous years. Just in Australia, in 2019 there were 29,786 standard patent applications which fell by 1.8% in 2020.
This means that in 2020, there were 29.240 standard patent applications. Now, let?s put the statistics aside and see what a patent is and how you can sell it.
What is a patent?
We can say that a patent is an exclusive right you are granted by the government for an invention. This invention can either be a product or process that provides a new way of doing something or it offers a solution to a certain problem.
To get a patent, you must submit a patent application. If you get the patenting rights, you can stop others, for a certain limited period, from using, making, or selling your invention.
Once you are granted the patent, the invention becomes your property which can be sold, bought, hired or rented just like any other business asset.
What kind of invention can be patented?
Obviously, not every invention can be patented. In order for your invention to be patentable, it needs to be new, never before made public anywhere in the world. An invention also needs to involve an inventive step, meaning that it needs to be completely new and not obvious to someone with knowledge and experience on the subject.
And last, for an invention or a process to be patented, it needs to be capable of being used or made in some kind of industry. Basically, an invention can?t be a theory or a scheme, it must take a form of a device.
If you think that your invention is patentable, don?t waste any time, hire a patent attorney who can help you with the application process. An experienced patent attorney from Sydney can help you prepare and fill out the patent application, and even represent you in court patent-related matters such as infringement, licensing, and so on.
Should you sell your patent or are there other options?
To benefit from your invention, especially if you put a lot of money into creating it, you have the option of selling your patent. The other option doesn?t require you to sell your patent, but you can still benefit from licensing it.
If you decide to license your patent, you can profit by selling the usage rights. This means that you keep the ownership of the patent but sell the rights to a third party to manufacture and sell the patented invention. You as an inventor will get a fee you agreed upon or royalty for each sold item.
The third option would be to manufacture the patent yourself and to market and sell it to the public. However, this third option is the most complicated and expensive option you can go for.
How to sell your patent
Selling your patent will allow you to generate some income that will help you finance your other projects or simply return the money you invested in the sold patent. If you decide to sell the invention right after it?s been patented is a hustle-free way to get money. However, to sell the patent for the best possible price, you need to know a couple of tricks.
1. Advertise your patent
Just like with every product or service that you want to sell, you need to advertise it first. Start by listing your invention on different websites, trade publications, and inventor?s magazines.
To further advertise your patent, you can also create a brochure that thoroughly shows and explains your invention and what it?s used for. Try to showcase all the benefits of your patent over similar products that are already on the market. Don?t forget to add images of a prototype to entice the buyers.
Attending trade shows is another great way to introduce your patent and to meet people who may be interested in purchasing it. Many people and companies attend shows like this, so attending may turn out to be a great way to find a buyer.
2. Venture capital
Finding partners to finance your inventions or to help you market an already patented invention can be done by approaching venture capital companies. You can also always ask your friends and family to be your partners and help you market or finance your invention.
3. Patent broker or submission company
Additionally, if finding buyers on your own doesn?t work out, you can always hire a patent broker or a submission company. A patent broker knows many potential buyers who may be interested in your patent. But keep in mind that if a broker manages to sell your patent, they get a fixed fee you previously agree upon or a percentage of the sale.
When deciding to hire a broker, make sure you hire a trustworthy and experienced agent that won?t give you false promises. Also, don?t pay anything upfront, only once the patent has been sold.
How much money can you earn by selling a patent?
The price of patents varies and determining it is not an easy job. The quality of the product is everything, the uniqueness and whether or not it can solve a problem play a big role in the price of the patent.
Once again, hiring a patent attorney can help you in many aspects even in determining the price of your patent. All you really need to know is that patents can be worth tons of money but only if they can solve a problem no other invention can.
Patenting an invention is a complex but well worth process. If you or your company think you have invented something unique that can solve a problem, don?t wait any longer, patent it to protect it from being stolen or sold without your permission.
Mike is an Australian business consulting specialist. He?s working with companies that outsource their IT maintenance. He often writes about technology, business and marketing and is a regular contributor on several websites.
