Many small and medium sized high tech businesses own patents that describe inventions their company has created over the years, but they don’t know how to extract actual cash from those patents by selling or licensing them. Licensing is beyond our scope here but selling patents is a process akin to an investment banking M&A transaction and can be fraught with gotchas and speed bumps throughout. So why do it?
A well executed, effective sale of your patents provides you with:
• Extra high margin revenue to create products or develop further inventions and patents
• Savings in maintenance fees (or prosecution fees for apps) for granted patents
• A grant back license that still allows you to practice your invention
• Chance to be more strategic – jettison, unused, non-strategic patents and invest in or create more strategic, relevant ones
How do you do it?
1. Determine and agree on your business objectives.
2. Assess your patent portfolio.
3. Find buyers or engage a successful broker to target industry buyers.
4. Execute the deal.