Once you have patented your invention, you have a sort of “green card” in your hand, and I don’t mean the “green” as in citizenship. But rather a card that can allow you to make some “green” or to you who are not with slangs, some money. However, there are intricacies rather with that process. Therefore, we are only going to discuss one way to make money from patents for now. To that end, we are going to answer the question: “what is patent licensing in India?”
Patent Licensing: the definition
Patent licensing means to either license or transfer the interest to other individuals. Now, you can do so for profit; and this is the reason our introduction went in the way it did. Now, once you have licensed your patent to someone else, you actually provide them with the rights to produce, use and trade with the patented product. However, there are two kinds of patent licensing and both of them open up new venues for profit.
Exclusive rights: If you are complete giving up your rights to your patent and giving them to someone else, then it means that the licensee is going to get the exclusive rights to the patent. It happens after an agreement has been established between the licensor and the licensee. Furthermore, if you are doing it on a permanent basis, you can get your asking price for the transfer. However, it is going to be a one-time thing. Therefore, make sure that you make a big buck with this. Furthermore, it can also be done on a non permanent basis and you will have constant source of income if you do that. However, you would only have a single venue for this.
Non exclusive rights: With this license, the licensee will gain the right to produce the design at any given time that they want. However, these rights are not exclusive. To that end, there can be many individuals or institutes to license the patent. This entails a non-exclusive agreement and generally is for a limited amount of time. You can get paid for this sort of licensing on practically a regular basis through multiple venues.
What are the advantages of patent licensing?
With patent licensing, you have access to make money from your patents. This can be counted as one of the primary advantage of licensing, might be the most important one. Other advantages are:
You can limit the risk of manufacturing: with patent licensing, you can transfer the risk of manufacturing to other parties.
Global distribution: through licensing, you gain the ability to reproduce the produce on a global and at an unprecedented scale through the individual you have licensed your patent to.
Limited time: there is no need for you to permanently assign the rights to your patent on a permanent basis. To that end, licensing allows you to not permanently assigning your patent to other individuals.
Stopping patent infringement: Now, with licensing, you can prevent patent infringement as well. As a mutually beneficial advantage, licensing allows both the licensors and the licensee to make money off the patent.
Now that you know the intricacies of what a patent license is, are you ready to apply for it and start to make some money on your invention?