How Much Do Patents Sell For?
The answer to the question, “How much do patents sell for?” depends on your circumstances. Today, the most sought-after patents are U.S. patents. Patents with international counterparts are worth anywhere from 10 to 25 percent more than those covering only one country. The process of selling a patent can take nine months, the first three of which are devoted to listing and distribution of marketing materials.
Unlitigated patents sell for mid to high six figure range
In a nutshell, the price of an unlitigated patent can be in the mid to high six figure range. This price is justified by the royalty stream the patent holder will receive from infringers. Unlitigated patents with broad claims can sell for several hundred thousand dollars or more. For patents with a high level of infringement risk, the price can exceed $1m.
Patent buyers are often reluctant to work directly with the seller of a patent because they’re afraid of a potential lawsuit. In some cases, patent buyers face a declaratory judgment lawsuit from a buyer. Patent brokers help buyers remove the risk of unwanted litigation by negotiating on their behalf. A patent broker can also help protect the seller from the risk of infringement litigation. In either case, buyers are more likely to get higher prices and protect their interests.
Before selling a patent, sellers should gather all relevant assignment documents. Verify that signatures on the documents match those on the assignment documents. When the terms of sale are agreed upon, the seller must make these documents available to the buyer. Buyers will also ask sellers to provide representations regarding the accuracy of the information provided in the documents. If a seller is unable to provide such documents, the buyer could claim that he has no knowledge of the patent’s validity.
Liens on a patent are another common problem for patent buyers. Liens on a patent prevent the buyer from acquiring a clean title. They also complicate the process of selling a patent. Liens should be disclosed upfront to prevent any surprises and ensure that the buyer receives a clean title. However, in some cases, a patent owner may have already filed a claim.
Selling a patent through direct contact
When selling a patent through direct contact, it is important to follow the steps of a traditional sales pitch. Just as you would with any product or service, it is important to have a convincing sales presentation prepared. It will include earning projections, sketches from the patent application process, and the benefits and differences of your patent over your competitors’. If possible, prepare a prototype of your product or service that you can use to demonstrate its benefits.
The first step to selling your patent involves making personal contacts with relevant executives. Your contacts will be the best resource for this because many patent holders do not have the network necessary to introduce themselves to company managers. Be sure to come across as a businessperson. Business people always exude professionalism, and it is best to approach an executive face-to-face. Once you’ve established yourself as a professional, ask for a face-to-face meeting with the company’s top executive.
Selling a patent through a patent broker
There are many reasons to sell a patent through a patent broker. These brokers are able to get proper attention for your patent. Many people will not respond to your email without looking at your patent, and some will require that you sign a non-disclosure agreement before reviewing your patent. These professionals can help you sell your patent for more money. Read on to learn more about these benefits of selling your patent through a patent broker.
The selling process is very similar to selling a house: a patent broker contacts potential buyers and makes the contact. This broker then prepares the materials for sale, contacts potential buyers, and offers pricing guidance. The process can take weeks, since there are so many solicitations that target a small number of companies. If you have multiple patents for sale, a patent broker may be your best bet. A patent broker can also provide information about infringement, pricing, and other details about the patents that you are looking to sell.
While you may be interested in selling your patent on your own, you need to be careful about how you present your assets. Many patent buyers do not want to waste time evaluating a patent before buying it. Ideally, your patent broker will be able to provide you with examples of closed deals in your industry so that you can gauge the value of your asset. Regardless of the method you choose, it is vital that you are comfortable with the price your patent broker is recommending.
When selling a patent through a patent broker, the broker will act as a third party between the buyer and seller, and can negotiate on your behalf. Depending on the market for patents, the broker can often buy your patent for a price significantly lower than a high-profile buyer. The best patent broker will be able to get you a higher price than you could on your own. This is because the broker will be representing the buyer in a transaction and will help you to avoid legal complications and the hassle of handling negotiations with the patent broker.
Selling a patent through a patent pool
There are several benefits to selling a patent through a patent pool, such as increased value, streamlined sale process, and reduced legal hassle. Patents sold through patent pools are usually more valuable than patents owned by individuals. Buyers are interested in U.S. patents today, but international counterparts can increase the value by as much as 10 to 25 percent. The selling process typically takes nine months, with the first three months being spent on preparing the listing and distributing marketing materials.
Patent pools are arranged groups of patent owners who aggregate their patents and make them available to non-members. The pool members agree to standard licensing terms for non-members. The pool members divide the royalty amounts according to a pre-established formula. Private collectives differ from compulsory licensing arrangements because they require extensive negotiations between patent holders and licensees. They are also often administered through a permanent administrative structure.
A patent pool allows participating companies to share their patented technologies and reduce the risks of infringement. In addition to sharing costs, patent pools also allow participating companies to monetize patents. Furthermore, the cost of transaction can be significantly lower than the total value of individual licenses. Selling a patent through a patent pool can be a lucrative option for an inventor looking to get a return on his or her investment.
When selling a patent, it is important to understand how the patent licensing process works. Generally, patent licensing companies act as a middleman between the patent owner and potential buyers. If the product has a long history of sale and is unique, a patent buyer is likely to be interested in the investment. If it is, the sale could potentially generate $500k or more in profits. However, it is always worth the time and effort to research the market for similar products.
When selling a patent, it is important to be aware of potential limitations. The license back is often structured as a covenant not to sue the license holder, meaning that the licensee is free to continue to sell products based on the patented invention. The buyer is usually keen to limit the scope of the license back. In order to achieve the desired return, the license back should be non-transferable, revocable, and disallowed from sublicenses.