How to License your Technology
Thousands of technological ideas are generated every day by people from within the United States and other countries in the world. However, sometimes one lacks the means or the will to sell their innovation. The good thing is that there always is the option of licensing the innovation to another company. www.pandapatent.com, a leader providing patent protection and a leader in dealing with emerging technologies, shares some tips to help you navigate through the process of licensing your technology.
Think of the amount of work you intend to do
Licensing your technology is like getting a manager who handles most of the aspects leaving you with little work. One of the advantages of licensing your technology is that you will be giving your idea to another party and let them do most of the work. You will not lose ownership of your idea, but you will have less control. As such, you need to do some critical thinking and decide how you will manage your technology. The more the work left for the company you will sign your idea to the less control you will have. Conversely, the more work you have to put in, the more power you will have your technology.
Research other patents and make small necessary improvements on your idea
If you come up with an idea, do some research and ensure that the design has not already been patented by someone else before you license it. Researching is not that a difficult thing as all you need is to Google the idea. If you find your design has already been patented by someone else already, that does not mean that you let go. An idea that is slightly different and more effective than other almost similar ideas can give you an edge in the market. In case you find yourself at this point, make a small improvement to make your technology unique before licensing it.
Find your market and create an ad
Before your innovation is patented, first ensure that you find out whether the idea will sell. The trick here is to go and do some pitching to potential market companies. If they are receptive to your design, you can proceed to look for the best deal. If most of the companies you pitch your idea to are not receptive to it, consider going back to the drawing board.
Creating an ad that gives necessary information about your technology will help you effectively market your idea. Ensure that the announcement contains all the essential information about your technology a prototype image. When finding a market for your product, do not give up just because one or two major retailers in your niche say no to you. Nothing comes too easy. You should expect a good number of companies you approach to turn you down. When you are turned down, go to the next retailer and pitch. Eventually, you will be offered a deal by one of them.
A good rule of thumb to observe when looking for a retailer is sticking to your niche. Such retailers know how best your technological innovation can be harnessed to the benefit of the both of you.
Find the right contacts and inquire about the process
When you get a retailer company, research and get to contact the best person to handle your idea. General contacts may not cut it for you unless company policy requires so when dealing with licensing requests. LinkedIn is a great tool to use to get contacts. When you make contact, inquire about the process. Do not just rush into pitching your idea. Get to start a conversation and create a rapport with the company first. Inquire about the process to know what you should expect if they buy your idea.
Ensure you are conversant with the terminologies in play before you pitch your idea and start negotiating a deal.
Get the companies to say yes
A company will always stay away from ideas that are too risky. Most of the new and innovative technological ideas are also fresh, and a little persistence can get the companies one approach to say yes. If your plan is too risky or too new, do not just walk away. All you need to do is put in some little fight.
The negotiation process is a very crucial stage in the process. When planning for the negotiations, it is essential to be aware of the fact that the agents of the company are knowledgeable too and will work in the interest of their business. The negotiations should be in-person where both you and the company have a common ground with regards to the goals and timelines for the negotiations. Lawyers play a very crucial role in licensing negotiations. In fact, they should be involved right from the beginning to help you make compelling arguments.
Once you have worked out a deal for your technological innovation, draft a written copy of the same and have it signed by you and the company. An agreement has to be signed by both parties to become official.