All you need to know about inventions for sale
The invention is the result of effort and intelligence of an inventor. A question may arise in your curious minds that “how to these inventors make money out of it?” If you are an inventor yourself you are seeking for the ways to use your invention as a source of income. Of course, a successful invention will become your source of income. You can make your own business with your invention and if you are not confident of this option there is the second option for you. You may sell your invention or you may say the idea of the successful invention to any company willing to buy. The second way is very popular in recent times. In this article, we will discuss the topic of inventions for sale.
What does an invention for sale mean?
You can sell your invention to other company in case you are not in a state of making business. This company will make your invention marketable and in return, you will be paid a good amount of money. The company buying your idea of the invention will require the protection of a patent. The patent on the invention in your name will ensure that no other person gets to sell your idea of the invention.
In the following discussion, we will know about how to sell your invention and the procedure involved.
Understanding market demand and acceptance of the product:
Before you proceed with your plan for selling your idea of the invention, you should start some research work. Do some research about the demands in the contemporary market. It also requires testing amongst a group of known people who will give you honest feedback. This will give you a clear idea of the acceptance of your product. Also, ensure that your product will be the best of its kind in the market.
Ensure the patentability of your invention:
Your invention should be qualified for the grant of a patent from the USPTO. There should be no same invention same as yours which has been granted a patent previously. All the legal works required for the application for the grant of a patent are to comply with and preferably with the help of a registered patent agent.
The process of producing the invention:
The process of production of the invention should be documented for the investors. If in the process of production of the invention any unique or uncommon raw material is required, the details of the same should be provided by you.
Professional presentation for the investors:
This part is very important in the whole process of selling your invention. Prepare a presentation of your invention for the licensors whom you will approach for sale of your invention. this presentation should be brief but should be explaining all the dimensions of your invention including its benefits and key features. The process of production and materials required for such should also be mentioned in the presentation. If you have already received a patent on your invention provide adequate documents required to prove the same. If the application is in patent pending status that should also be mentioned in the presentation. You should never keep the investor or licensor in darkness by not disclosing any drawbacks of the product. You should give them a clear idea of the demand of such product in the market which you have come to know after extensive research.
Find out and approach the suitable company for your production:
When you are done with your preparation to sell the invention it is time to get in touch with investors. This too requires some market research. Make a list of a good number of investors out of many companies in the market who may be interested to buy your invention. it is easy to say but not so easy to do. So better understand the category in which your invention falls. After you have sorted out, look for those companies which are having businesses of the same category.
Not always big companies are the only option available. Sometimes smaller companies in areas where such products are not so popular or not very known may be beneficial. Such companies may make more business with your invention in unexplored areas. So choose the buyer wisely for better returns while selling your invention. This will ensure better returns from your invention.
Decide the payment procedure and scale of it:
When you place your quote do not make it unrealistic. The payment should be done in three steps which are hereunder explained.
- The first payment should be done at the beginning much before the procedure for sale even begin. This payment is like an advance against the royalty but popularly termed as an up-front payment. the amount of upfront payment varies and can be decided on the consensus of both the licensor and licensee.
- Royalty is calculated on the basis of the annual sale of your product. You may claim within a range of 2-5% as royalty.
- To ensure your benefit you should ask for an annual minimum. This will ensure you get a fixed amount of royalty apart from the royalty from the sale. With this, you will never be at a loss even if sales are down.
You have to earn from your invention for a longer period of time, so the scale should be kept pleasing both the licensor and your aim. So do not fall prey to lucrative deals which will give you money but for a short span of time. Decide wisely while selling your invention. Hope this article will help you to know everything about inventions for sale.