{"id":8560,"date":"2021-09-20T06:14:10","date_gmt":"2021-09-20T06:14:10","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=8560"},"modified":"2022-01-04T12:49:48","modified_gmt":"2022-01-04T12:49:48","slug":"mistakes-people-commit-during-patent-licensing-and-selling","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/mistakes-people-commit-during-patent-licensing-and-selling\/","title":{"rendered":"What are the Common Mistakes People Commit During Patent Licensing and Selling?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">To monetise Patents, most businesses around the world face difficulties in picking the correct strategy. Nine out of ten Patents fail to create value for their respective owners. Such Patents don\u2019t get implemented in products, nor do they find any licensing opportunity in their lifetime. The high-stake deals relating to Patent licensing and selling leave a small margin for mistakes, as problems that arise at this stage can cost a chance. Scroll down to check some common mistakes people commit at the time of Patent licensing and selling.<\/p>\n\n\n\n<div class=\"embed-responsive embed-responsive-16by9\"><iframe class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/owfZ--GtKz8\" allowfullscreen=\"\"><\/iframe><\/div><br>\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-6a54e62778496\" 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-6a54e62778496\"  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\/mistakes-people-commit-during-patent-licensing-and-selling\/#What_is_the_Concept_of_License\" title=\"What is the\nConcept of License?\">What is the\nConcept of License?<\/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\/mistakes-people-commit-during-patent-licensing-and-selling\/#Significance_of_Patent_Licensing_and_Selling_in_a_Business\" title=\"Significance of Patent Licensing and Selling in a Business\">Significance of Patent Licensing and Selling in a Business<\/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\/mistakes-people-commit-during-patent-licensing-and-selling\/#Mistakes_People_Commit_During_Patent_Licensing_and_Selling\" title=\"Mistakes\nPeople Commit During Patent Licensing and Selling\">Mistakes\nPeople Commit During Patent Licensing and Selling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/mistakes-people-commit-during-patent-licensing-and-selling\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Concept_of_License\"><\/span>What is the\nConcept of License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>License\nis a means by which an asset owned by a party can be used by another party in\nexchange for a series of payments or payments being made, and it is termed as a\n<strong><em>Royalty<\/em><\/strong>.\nMost common assets exchanges in such preparation may be certain IPRs,\nformulations, products, etc. <\/p>\n\n\n\n<p>Generally,\nlicenses are reduced to written contracts that define the obligations,\nlimitations, obligations, duties, and payment schemes that have been approved\nupon by the parties in question. The rights granted through a license may\neither be complete, i.e., Absolute License may be permitted, or only certain\nrights or rights that may be shared with others that is a non-exclusive or\nlimited license. In case of a violation or infringement of any terms of the <strong><em>Licensing\nAgreement, <\/em><\/strong>the license may descend and be terminated. The licensee may\nalso be required to pay penalty charges.<\/p>\n\n\n\n<p>A\nlicense should be looked at as a temporary &amp; limited transfer of exclusive\nrights over an asset as, eventually, the rights of ownership over the asset\nwill remain with the licensor. Another way to this arrangement is the original\npurchase of the asset by the licensee from the licensor. But, in many cases,\nlicensors don&#8217;t choose to sell their assets as they prefer more collecting the\nlicensing benefits in the future or other territories and for alternative\nobjectives. Hence, a license is vital merely a group of rights over an asset\nassigned to the licensee while the proprietorship continues to remain with the\nlicensor. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significance_of_Patent_Licensing_and_Selling_in_a_Business\"><\/span>Significance of Patent Licensing and Selling in a Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some businesses or companies may consider Patents as ad-hoc profits stream rather than a part &amp; parcel of the more excellent business plan. Instead, they should look at Patents as a regular alternative profit stream that can complement their primary business activities. For instance, when a company builds <strong><a href=\"https:\/\/swaritadvisors.com\/patent-registration\" class=\"text-primary\">Patent<\/a><\/strong>, they have some choices; they can either exercise them by incorporating them into their goods and services or sell them at a heavy price. <\/p>\n\n\n\n<p>Businesses\ncan also decide to license their Patents and make a profit out of royalties.\nBut, the catch is that sometimes Patent licensing and selling deals can be\nenormously complex. They often leave the area for costly mistakes. The idea is\nto predict such problems &amp; avoid them entirely.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mistakes_People_Commit_During_Patent_Licensing_and_Selling\"><\/span>Mistakes\nPeople Commit During Patent Licensing and Selling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are some common mistakes people commit at the time of Patent licensing and selling:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/09\/mistakes-people-commit-at-the-time-of-Patent-licensing-and-selling.png\" alt=\"mistakes people commit at the time of Patent licensing and selling\" class=\"wp-image-8567\" width=\"452\" height=\"439\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/09\/mistakes-people-commit-at-the-time-of-Patent-licensing-and-selling.png 904w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/09\/mistakes-people-commit-at-the-time-of-Patent-licensing-and-selling-300x291.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/09\/mistakes-people-commit-at-the-time-of-Patent-licensing-and-selling-768x745.png 768w\" sizes=\"(max-width: 452px) 100vw, 452px\" \/><\/figure><\/div>\n\n\n\n<ul><li><strong><em>Inaccurate Patent Valuation<\/em><\/strong>: This is one of the major mistakes peoples commit at the time of Patent licensing and selling. Since there are no industry criterion procedures for Patent Valuation, businesses may incorrectly estimate the Patent value or even the whole patent portfolio. <strong><a href=\"https:\/\/swaritadvisors.com\/blog\/patent-valuation\/\" class=\"text-primary\">Patent Valuation<\/a><\/strong> approaches based on the cost, market, or income aspects can aid to a great extent incorrectly judging the Patent Value.<\/li><\/ul>\n\n\n\n<p>Skilled\nin executing such processes, external Patent Valuation professionals have\nenough experience and domain-specific information to calculate Patents and\ncorrectly estimate the Patent Value. Such professionals examine the present\nprices of identical patented products in the market, the advanced level of the\ntechnology being utilised in the Patent, as well as the possibilities of it\nbeing violated by current products. With the support or assistance of such an\nexternal Patent Valuation professional, one can refrain from undervaluing\nPatents in licensing and sale deals.<\/p>\n\n\n\n<ul><li><strong><em>Selling Essential Patents<\/em><\/strong>:\nWithout a correct Patent portfolio evaluation, organisations may finish selling\ntheir vital Patents, which are connected with their primary activities. Hence,\nit is recommendable to always license such Patents instead of selling them.\nOtherwise, the company may lose its competitive edge in the market. Companies\nmust calculate their Patent portfolio regularly origin to recognise Patents\nthat are core and non-core to their business.<\/li><\/ul>\n\n\n\n<p>Further,\nthey can also execute an active competitive examination to recognise the core\nand non-core domains for their opponents. For instance, if a company&#8217;s non-core\nactivity is core for its competitor, then that Patent shouldn&#8217;t be sold as it\nis basic for them; those Patents can be used for self-protective purposes.<\/p>\n\n\n\n<ul><li><strong><em>Incorrectly Structured Pitch Deck<\/em><\/strong>: Most businesses commit mistakes while structuring a pitch deck for their <strong>Patent portfolio<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Patent_portfolio\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> or Patent while Patent licensing and selling. In other terms, a Patent pitch deck is a PowerPoint deck defining the Patents available for license or sale along with seller or licensor and market information.<\/li><\/ul>\n\n\n\n<p>As\nmany Intellectual Property- intensive companies have numerous Patents in their\nportfolio, a common mistake committed by them is that they often associate 70\nto 80 Patents of each asset within that pitch deck; however also the appeal of\nthe complete pitch deck from an outlook of the buyer. An effective way to\ndesign a pitch deck is to accommodate 20 to 30 Patents within one deck.\nFurther, there should be a combination of deal drivers and enabler Patents\nwithin the pitch deck. <\/p>\n\n\n\n<p>Enabler Patents assist the buyer or licensee to boost their Patent portfolio value. They are not directly violated by-products in the market, but they encourage the relating technology value. So, create a pitch by putting capable enabler Patents with deal drivers in the pitch deck.<\/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>While discussing the common mistakes people commit during Patent licensing and selling, it is essential to hire an expert who will help you avoid such mistakes. Since Patent licensing deals are pretty complex, companies shouldn&#8217;t hesitate to take some help from external strategic partners who can accurately guide them through the arrangements. They help companies control the full capability of their Patent portfolio or Patents by avoiding costly mistakes.<\/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\/software-patent\/\">What is the Meaning of Software Patent? \u2013 An Overview<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To monetise Patents, most businesses around the world face difficulties in picking the correct strategy. Nine out of ten Patents fail to create value for their respective owners. Such Patents don\u2019t get implemented in products, nor do they find any licensing opportunity in their lifetime. The high-stake deals relating to Patent licensing and selling leave [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":8561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[55],"tags":[855],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8560"}],"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=8560"}],"version-history":[{"count":10,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8560\/revisions"}],"predecessor-version":[{"id":10119,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8560\/revisions\/10119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/8561"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=8560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=8560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=8560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}