Selling a patent can be difficult, but employing the appropriate strategies can increase the likelihood of finding a purchaser for your invention. In this article, we will discuss ten best practices that, when implemented, will maximize the appeal of your patent and increase the likelihood of it being successfully sold. These practices will assist you in effectively navigating the patent selling journey and help you with everything from inventing around your patent to creating a compelling sales package.
1. Invent Around Your Patent and File New Provisional Patent Applications
Inventing around your existing patent and filing additional provisional patents is one strategy you can use to attract potential purchasers. This action eradicates the prospective purchaser’s belief that they can easily sidestep your patents. Implementing a process known as “inventing around” is one way to strategically “invent around” – or find other ways of achieving similar benefits of your invention and make it more appealing to potential purchasers.
2. Invent on Top of Your Patents and File Numerous Additions
Buyers frequently look for patents demonstrating an ongoing commitment to innovation and improvement. To maintain a current patent portfolio, you should continue to innovate on top of your existing patents and file multiple additions. This demonstrates to prospective buyers that you are committed to expanding the intellectual property, increasing the value your patents are perceived to have.
3. Develop Key Trade Secrets and Document Them
Record and store in a registry any inventions or confidential business information that could be considered a trade secret connected to your patent. During the process of the sale, these trade secrets have the potential to become valuable negotiating assets. Establish a trade secret strategy that safeguards the confidential information you possess and enables you to use that information effectively when appropriate.
4. Create a Working Prototype
You should consider making one if you don’t already have a working prototype. In today’s “flat” world, prototypes can be produced at a relatively low cost, and even a virtual prototype can serve the same purpose as the physical one. If you can give potential customers a hands-on demonstration of your patents use, it will be easier for them to imagine how it could be used and what its full potential is.
5. Create “Connection” Inventions to Enhance Relevance
Create “connection” inventions that bridge the gap between potential buyers’ existing product lines or patent portfolios and your invention to make your patents more relevant to those interested in purchasing them. Methods such as “Invention-On-Demand” can be used to develop these connection inventions. You should file multiple connection inventions as provisional patents to demonstrate the value that your patent (or patents) can bring to the buyer’s business.
6. Present a List of Future Directions for Your Patents
Create a list of at least 25 concepts that illustrate possible paths your patent could take in the foreseeable future (s). By revealing these ideas at an early stage, you not only demonstrate the value of your intellectual property over the long term, but you also pique the interest of potential buyers. This list can potentially serve as a jumping-off point for further conversation and bargaining.
7. Review Patent Office File Wrappers and Address Objections
Perform a careful review of the patent office file wrappers for each of your patents to understand the examination history and any objections raised. Include a concise summary of this information in your marketing package to avoid potential buyers’ objections. You can instill confidence in potential purchasers regarding the robustness and validity of your patent by proactively addressing potential concerns and addressing them head-on (s).
8. Develop a Compelling Video in the Sales Package
Include a brief video for two to three minutes as part of your initial sales package. This will allow you to tell a compelling story about your patents, the inventors, the company, and the reason for the sale. The presence of video content draws attention and generates initial interest, increasing the likelihood that prospective purchasers will engage with your patents and the associated documentation.
9. Highlight Market Potential and Extended Value
Include the information you have obtained through extrapolating the applications of your patents applications to as many relevant markets as you can in your marketing package. Your patents will have a greater chance of being purchased if you can illustrate their potential scope and extend value to potential purchasers. To pique their interest in your invention, demonstrate the breadth of its potential applications.
10. Rationalize the Cost of Obtaining the Patents
Make an itemized list of all the costs associated with obtaining your patents, including those associated with research, hiring legal counsel, going through the process of trial and error, purchasing necessary equipment, and any other pertinent costs. Buyers are provided with a comprehensive comprehension of the financial commitment made while developing the patent through this detailed cost analysis (s). You can strengthen your negotiating position and improve people’s perceptions of the worth of your patents by highlighting the financial value of your patent or patents.
Remember that patent selling requires careful preparation, strategic thinking, and effective communication. By inventing around your patent, developing trade secrets, creating connection inventions, and highlighting future directions, you enhance the desirability of your intellectual property. Utilize videos, market extrapolation, and a transparent cost breakdown to support your selling efforts.
Lastly, be prepared to engage in negotiations, provide additional information upon request, and work closely with potential buyers to address any concerns they may have. Selling a patent is not just about showcasing the technology; it’s about demonstrating your invention’s value, relevance, and market potential.
By following these best practices and adopting a proactive approach, you significantly improve your chances of successfully selling your patents. Stay persistent, adaptable, and open to collaboration, as finding the right buyer who recognizes the actual value of your intellectual property is critical. Good luck on your patent-selling journey!