Working Together to Earn Money From Your Patent

A business partner could contribute knowledge or share their contacts or capital. After all, not every inventor has everything they need to earn money from their invention.

Important to make solid agreements

Be sure to make solid agreements about what will happen to any patents you and your business partner already owned. You should also agree who will receive the rights to any knowledge created through your partnership. Do not forget to agree conditions for when and if third parties may use this knowledge. Make solid agreements about how to divide income and costs.

By making solid agreements, you can prevent situations where:

• someone other than the inventor from earning money from the invention;
• a new innovative idea can no longer be protected by a patent;
• knowledge leaks to competitors (see also confidentiality);
• the success of an invention is dependent on other parties for no good reason;
• others fail to see the value of a proposed idea;
• in case of a conflict between companies of different size, the larger company will always win;
• delays arise in the development process and the freedom of parties is limited for no good reason.

Anything you leave out of the agreement can become a risk. When negotiating, you should be realistic about your own contribution and the potential earnings.

Other ways to use your patent

• Market your patented product yourself
• Grant licences that allow someone else to make and/or sell your product
• Sell your patent