How To Apply For Patent And Use Patent Licensing To Your Advantage

Patenting is a process through which an individual investor can earn revenue by capitalizing on their novel ideas. Steps for filing a patent application are as follows:

1. The novelty of invention — As an innovator, you will first need to have your invention assessed and check if it is patentable. There are certain criteria an invention must fulfill to be patentable. Details to be checked are easily available online. You also need to ensure that your invention is not publicly disclosed and that no other company/person is already holding its patent.
2. Application — A certain fee needs to be paid for the patent application. Apart from the basic fee to file a patent, there are additional fees such as a search fee, an examination fee, and an issue fee. There could also be excess claims fees depending on your application.
3. Filing — Patent application is a detailed and complex process, and you must be aware of the guidelines and format before filing. All the details can be easily found online. You can submit the application online or offline with the correct fee.
4. Examiner — An examiner is present to review your patent application. This person is in charge of checking the details of the application against the requirements and confirming its eligibility. You do have a chance to make amendments or argue your case with the examiner. However, if you do not put forth your points within the time period specified by the patent office, your application could be rejected.
5. Approval — If your application meets all the requisite criteria, the patent will be granted in your name and the innovation will be officially yours.

Once the idea is patented, the inventor can generate revenue by licensing the technology. To profit from patent licensing, it recommended that the licensor devise a strong licensing strategy. This strategy can help the patent holder understand which company would be best suited for their innovation, what will be the contact details, and what is the compensation acceptable to the innovator.

Patent licensing has significant advantages:

• As a patent holder, you need not invest to commercialize your product. The licensee bears the cost of manufacturing, packaging, distribution, and marketing.
• If you get the commercial backing of an established player, your innovation can reach the market faster.
• Your innovation may reach newer and foreign markets without you taking the risk of international expansion.
• As a patent holder, you will receive a one-off payment and continuous royalties or variable payments.
• You will retain ownership of your intellectual property.

Patent licensing can be defined based on exclusivity (exclusive, non-exclusive, or compulsory), degree of licensing (complete, sub-licensed), or a number of licensees involved (sole, multiple entities), etc.

For a successful patent licensing, your innovation must be unique, have limited competition, and you must be willing to give up control.