Clallam EDC: Clallam County Economic Development Council"

Licensing

The most common commercialization approach is to draft a licensing agreement with an investor/company that results in the use of the intellectual property by the company. Licensing fees and royalties are remitted to the inventor according to the licensing agreement. It is most helpful for the inventor to contribute substantially and directly to the identification of potential markets for the invention and in locating potential licensees. Through licensing, the inventor retains ownership of a product or technology and the companies obtain the right to use the technology to make and sell products or services.

You may license your patent exclusively or to more than one party. Non-exclusive rights allow many entities – including the inventor – to practice the invention simultaneously. Other issues to be considered in a licensing agreement include territory covered; how long the license will be in effect; how the invention will be used and royalty rates. A field of use license allows different parties to manufacture the invention simultaneously but each party manufactures the invention for a different purpose.

Resources abound when searching for companies likely to have an interest in your product. Several notable starting points are:

• Thomas Register, a resource that alphabetically lists products and services and the companies that produce them
• Standard & Poor’s Register of Corporations, Directors and Executives
• Dun and Bradstreet’s Million Dollar Directory
• Trade directories and magazines

Chambers of Commerce, banks and local industrial development organizations, small business incubators, may be able to help you locate manufacturers and individuals interested in developing your ideas. For a fee, the USPTO will publish a notice that your patent is available for licensing or sale in its official gazette.