Every single day, people are pushing the boundaries of imagination, creativity, and intellect by inventing something/s that make life better for human kind. The world is full of inventors who create something so brilliant and unique, yet, the world never finds out due to the inventors failing to license and manufacture their inventions. For an invention to be manufactured, inventors must find a way for their inventions to be produced and sold. They also have the option of partnering with large companies who have the overhead funds required to mass produce and sell the invention. The third option is to rent their patent rights by licensing their inventions, which certainly is the most beneficial option. Here is why.
1) Licensing Your Invention Allows You to Offset Start-up Costs
One of the greatest advantages of licensing your invention and other intellectual property is that another party becomes in charge of commercializing your product. They are in charge of buying the raw materials needed to mass produce your invention. They are also in charge of paying for various government licenses required to sell your invention. Even the inventory management, distribution, sales, customer servicing, and marketing are all handled by this entity. You as the inventor, who leased the patent rights of your invention, only have to sit back and receive substantial quarterly royalty paychecks every year.
2) Licensing Your Invention Opens Many Doors for Opportunity
Once your invention has been successfully mass produced and sold by a larger manufacturer, you establish a business relationship based on trust. This allows you the opportunity to become more of an inventor as you are able to submit fresh ideas regularly. After submitting your new ideas, you can expect to hear immediate feedback from your partners. This has the potential of translating into more opportunity for your latest inventions to be produced and sold.
3) Licensing Allows Inventors To Do What They Do Best
The fact of the matter is that most brilliant inventors have little to no idea about how to successfully mass produce and sell an invention. They may know what raw materials are required to make the invention but they usually do not have a clue where to find the raw materials. They also do not have the capital required to fund the purchase of these materials by bulk. When inventors license their brilliant ideas to larger companies, they do not have to worry about capital, materials, marketing, and selling. They simply concentrate on what they do best, which is to create brilliant invention after brilliant invention.
4) Licensing Allows Inventors the Resources to be More Novel with Their Inventions
The greatest advantage inventors have with licensing is the earnings which come in fat quarterly royalty checks paid by major companies who manufactured their inventions. With these earnings, inventors have the option of creating products of their own and having the capital to invest on more expensive resources that they were never able to afford. Keep in mind that there have been a lot of inventions that required specialty parts to create. Some of these parts may not be available anywhere.