Conventional wisdom about patents go like this- you make a technology that’s novel and unique, and then you need to turn it into a business once you get the patent protection. But did you know that with patent licensing, you can skip that last step entirely?
What is patent licensing? Read this IP Conversation to find out!
Hey IP Geek!
I learned that ARM Ltd, a British company with CPU related patentss earns nearly $1 to 10 million from licensing their patented technology.
How does this work?
Licensing is an agreement by which a patent owner allows a third party to use their patented technology, for a fixed royalty.
It is a method commonly used for IP monetization.
Licensing allows you to enjoy monetary benefits without the hassle of running a business.
This is advantageous for inventors who are not interested in marketing and selling.
Of course, licensing is invention specific and needs careful consideration.
But inventors can retain ownership, and still enforce their patent by suing infringers while reducing production costs.
So there are many benefits of licensing but it ultimately depends on the patentee and his invention.
Thanks for the clarification, IP Geek.
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