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Invent an original product. Research your market. Do a patent search. Consider filing a provisional patent application. File a patent application. Search for licensees. Sign a licensing agreement. Collect royalties.
Licensing involves obtaining permission from a company (licensor) to manufacture and sell one or more of its products within a defined market area. The company that obtains these rights (the licensee) usually agrees to pay a royalty fee to the original owner.
Consider the Amount of Work You Want to Do. Research Other Patents. Find a Small Improvement. Don't File Too Early. Consider a Provisional Patent. Be Your Own Expert. Find Your Market. Create an Ad.
With a fairly successful product, you may sell 3 units per store per week, or 156,000 units each year. If the product sells for $25, wholesales for $10, and you have a 5% royalty deal, then you are looking at $. 50 per unit sold, for a total of $78,000 per year.
While licensing means less work, it can also mean less profit. The entity that accepts the risk of mass-producing and selling your product will likely claim a much greater percentage of the revenue. Moreover, by licensing, you lose control over the execution of “your” idea.
You don't need a patent to license your idea for the majority of consumer products. That's all you need for most licensing deals. A PPA offers you 12 months during which you can offer your product for sale using the words patent pending.
With a fairly successful product, you may sell 3 units per store per week, or 156,000 units each year. If the product sells for $25, wholesales for $10, and you have a 5% royalty deal, then you are looking at $. 50 per unit sold, for a total of $78,000 per year.
Licensing involves obtaining permission from a company (licensor) to manufacture and sell one or more of its products within a defined market area. The company that obtains these rights (the licensee) usually agrees to pay a royalty fee to the original owner.
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