{"id":10602,"date":"2022-02-22T06:58:58","date_gmt":"2022-02-22T06:58:58","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=10602"},"modified":"2022-02-22T07:01:06","modified_gmt":"2022-02-22T07:01:06","slug":"steps-for-selling-a-patent","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/steps-for-selling-a-patent\/","title":{"rendered":"Steps for Selling a Patent &#8211; A Complete Analysis"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A\nPatent is one of the most integral parts of the innovation process as it opens\nup a few opportunities for an innovator. First, it provides the ownership of\nthe invention onto the innovator, thereby safeguarding the idea from the\ninfringer. After that, it gives exclusive rights to the inventor for its\nutilisation. And consequently, it identifies the steady hard work for\nmonths\/years that an innovator has put in to create or make something that\nnever existed before. In this write-up, we will discuss different steps for\nselling a Patent.<\/p>\n\n\n\n<p>However,\nowning a Patent is just the starting; how one is able to use this safeguarded\ninnovation is dominant. While the utilisation aspect may vary from one\ninnovator to another, one can either license or sell it to others or market a\nproduct based on the underlying invention.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a3fccd0d57\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a3fccd0d57\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/steps-for-selling-a-patent\/#What_do_you_mean_by_a_Patent\" title=\"What do you\nmean by a Patent?\">What do you\nmean by a Patent?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/steps-for-selling-a-patent\/#Different_Steps_for_Selling_a_Patent\" title=\"Different\nSteps for Selling a Patent\">Different\nSteps for Selling a Patent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/steps-for-selling-a-patent\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_a_Patent\"><\/span>What do you\nmean by a Patent?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before\nwe discuss different steps for selling a Patent, let\u2019s understand the meaning\nof Patent. A Patent is an integral part of Intellectual Property (IP) that\nprovides its owner with the legal right to exclude or eliminate others from\nmaking, using, or selling an invention for a limited period in exchange for\npublishing or advertising an enabling disclosure of the invention.<\/p>\n\n\n\n<p>The procedure for <a href=\"https:\/\/swaritadvisors.com\/patent-registration\" class=\"text-primary\"><strong>Patent Registration<\/strong><\/a>, requirements placed on the Patentee or Patent owner, and the extent of the exclusive rights vary extensively between nations as per the National Laws and International Agreements. Typically, a Patent application must comprise one or more claims that define the ambit of protection that is being sought. A Patent may comprise many claims, each of which defines a particular property right. These claims should meet different patentability requirements, which in the United States comprise uniqueness, non-obviousness, and usefulness.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Steps_for_Selling_a_Patent\"><\/span>Different\nSteps for Selling a Patent<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following\nare different steps for selling a Patent:<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Step\n1: Valuation of Market Applicability<\/em><\/strong>: The\neasier it is to materialise the invention, the higher are the possibilities of\nselling a Patent. That&#8217;s why the 1<sup>st<\/sup> step of selling a Patent\nsuccessfully is to recognise the patented invention\u2019s market applicability. We\nhave to gauge two things as mentioned below:<\/p>\n\n\n\n<ol><li>How easy is it to create or\nmake a product or item based on the patented invention\/<\/li><li>How commercially viable the\noverall process of production is? For example, whether the product or good has\na demand in the market or not.<\/li><\/ol>\n\n\n\n<p>One\nof the good methods to gauge the above two factors is by recognising any\nexisting product or business process that violates the Patent in any manner. It\nacts as proof of the high market applicability of the Patent or Patents in the\nportfolio. To know the Infringement, you need to conduct an infringement\nanalysis, and this will help you in identifying the market players violating\nthe Patent in hand. It infers the Infringement and its type; we can create our\nselling narrative around it &amp; place our offer in a better light. When the\nportfolio includes a wide variety of Patents, it becomes vital to keep the\nfocus on the most crucial Patents in the set.<\/p>\n\n\n\n<p>Moreover,\nunderstanding or knowing the underlying technology and its features also help\nchart out all the possible market areas where a Patent of Patent Portfolio may\npose applicability. This way, they open new unknown avenues for the utilisation\nof the Patent.<\/p>\n\n\n\n<p><strong><em>Step\n2: Estimation of the Market Value<\/em><\/strong>: Once\nestablished the high market applicability of the Patent, the next step is to\nestimate the Patent and know its fair market value. The estimation is a vital\npart of the process as it keeps the seller or innovator well-known on their\nPatent\u2019s worth or value. Thus, it results in better decision making and keeps\nthe seller well-aligned at the time of negotiations. There are different\napproaches to realising it, but the prominent strategies are mentioned below: <\/p>\n\n\n\n<ol><li>Market-Based Approach;<\/li><li>Income-Based Approach;<\/li><li>Hybrid-Approach;<\/li><li>Cost-Based Approach.<\/li><\/ol>\n\n\n\n<p><strong><em>Step\n3: Identifying the Capable Buyers<\/em><\/strong>: After\nestimating the best value for the Patent, now the next step for selling a\nPatent is to identify the potential buyers. In this step, we search for the\nplayers that may be interested in the subject technology of the Patent &amp;\nthere are various ways to do so, as mentioned below.<\/p>\n\n\n\n<p>The\nsimplest way is when you have recognised a capable infringement \u2013 to locate the\nmarket players who are violating the Patent in any manner. Such violators\nbecome our key target to pitch the offer and can be given two different\noptions. Either they can license or buy the Patent or change their process to\navoid Infringement.<\/p>\n\n\n\n<p>But,\nif there are no infringements, the other way is to look for the players facing\nsimilar problems. These are the players running in the related domain &amp; can\nbenefit from the Patent&#8217;s subject technology. This is done by searching or\nseeking around companies in the related area to know their business nature and\nthe challenges they face. Once they are found, they can be informed of the\nsolution to their problem using the patented technology. This will increase the\nchances of selling a Patent as an affordable value, ultimately creating a win-win\nscenario for the buyer &amp; the seller.<\/p>\n\n\n\n<p>Another\nway is to find the players filing Patents in a similar domain. Recognising such\nplayers would mean that they are interested in the respective technical field\nand may purchase the Patent. The reason is that adding such Patents will boost\ntheir Patent Portfolio, and, hence, they can be prospective buyers.<\/p>\n\n\n\n<p>Hence, while looking for such players, the seller must examine whether the company has in-house <strong>Research &amp; Development (R&amp;D<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Research_and_development\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong> practice or a history of Patent or Company Acquisition. This practice comprises that the company is into organic growth for its <strong><em>Patent Portfolio<\/em><\/strong> and may not be very keen on purchasing them. But, if it\u2019s a history of acquisition, it\u2019s more inclined towards organic growth, and it may willingly purchase the Patent.<\/p>\n\n\n\n<p>Therefore,\ncompanies that opt for Company Acquisitions to grow their Patent or Product\nPortfolios could be good candidates for selling the Patent Portfolio.<\/p>\n\n\n\n<p><strong><em>Step\n4: Approaching the Recognised Prospects<\/em><\/strong>: To\ncomplete the identified prospects, it&#8217;s vital to take the starting steps of\nreaching out to the prospects properly. While a correct strategy can lead to\nthe desired outcome, a wrong one can close the deal before it begins. <\/p>\n\n\n\n<p>Therefore,\nfor an appropriate execution, the preliminary step is to package a list of\nPatents correctly. This should show in the insights provided by an analysis of\nInfringement. This way, it keeps the pitch more lined up to the requirements of\nthe client &amp; the market.<\/p>\n\n\n\n<p>A\nPitchbook is prepared to connect to the prospective companies and negotiate the\nprice in this step. It comprises all the details that aid a capable buyer or\nlicensee understand how a specific invention can benefit them. For instance, it\nincludes facts of the Patent, the relevance of technology, the problem it\naddresses, market study, other advantages, etc.<\/p>\n\n\n\n<p><strong><em>Step\n5: Negotiating<\/em><\/strong>: The next step is to execute\nthe deal, and it is done in two parts:<\/p>\n\n\n\n<p>First,\nall the interested buyer and the seller enters a <strong><em>CDA (Confidential Disclosure\nAgreement) or NDA (Non-Disclosure Agreement)<\/em><\/strong>. These agreements are\nvital to protect the patented information and other vital insights from being\nleaked into the public domain. Once the CDA or Confidential Disclosure\nAgreement is in place, the seller can supply further information with\ncertainty. Here, Intellectual Property service providers can knowingly simplify\ncoordination among the parties.<\/p>\n\n\n\n<p>Apart\nfrom these, it\u2019s vital to make sure that these dialogues result in a win-win\nsituation for both sides. Further, the seller has to remember that the buyer\nwill estimate the Patent and current reasons to lower the asking price.\nReferring to the points &amp; information from the pitchbook would help better\nnegotiate the deal. Once the negotiations are finished, the deal closure would\ninvolve assigning the Patents to the buyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An organised approach that begins by assessing the market applicability of the Patent is the key. This aids the inventor make well-informed decisions concerning the process of selling a Patent, comprising whether to sell the Patent. It also weighs on the different methods of Patent Evaluation so that the seller recognises the fair price of a Patent &amp; it also ensures that the buyer doesn&#8217;t devalue the Patent. Moreover, it informs ways to recognise the correct buyer for the Patent. Hence, combining the last two, the Patent is sold to the right buyer at the right price \u2013 resulting in a win-win situation.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/employer-employee-patent-ownership-in-india\/\">Employer \u2013 Employee Patent Ownership in India \u2013 An Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Patent is one of the most integral parts of the innovation process as it opens up a few opportunities for an innovator. First, it provides the ownership of the invention onto the innovator, thereby safeguarding the idea from the infringer. After that, it gives exclusive rights to the inventor for its utilisation. And consequently, [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":10610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[55],"tags":[988],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/10602"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=10602"}],"version-history":[{"count":13,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/10602\/revisions"}],"predecessor-version":[{"id":10616,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/10602\/revisions\/10616"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/10610"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=10602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=10602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=10602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}