Intellectual Property Forums (http://www.intelproplaw.com/Forum/Forum.cgi)

(Message started by: Derek Calloura on Jun 18th, 2007, 5:02pm)

Title: Selling a Patent
Post by Derek Calloura on Jun 18th, 2007, 5:02pm
Hi all,  if I already have a patent and chose to sell the rights, is this a good idea in general?  I know it might depend on if the buyer thinks they can make money off of it, but is it worth it to sell, or keep trying to find a manufacture?  I've had multiple companies eagerly want to do the work for me.  Of course, I know its their job to help everyone out, but the only reason I haven't  so far is the initial costs to get this rolling.  I'm debating just to sell my rights to the highest bidder.  Is it as easy as that?  I have no clue.

Thanks

Title: Re: Selling a Patent
Post by JimIvey on Jun 19th, 2007, 7:47pm
Sorry, there's no general answer to that question.  It's like asking "is it a good idea to sell my house rather than rent it out, in general?"  There's just no way to answer that question.  We help you get property.  How you make money from your property is a business decision.

Regards.

Title: Re: Selling a Patent
Post by biopico on Jun 19th, 2007, 8:11pm
In biotech area, if you have a patent(s):

1. Some people are looking for licensees (partial or exclusive) and collect fees;
2. Others may want to sell the patent rights

It could be easy to achieve either 1 or 2, but sometimes it is very very difficult to find people who are interested in your patent(s).


Title: Re: Selling a Patent
Post by siddharthk on Jun 20th, 2007, 6:28am
think about it from this angle
term of patent 20years. how long do u think ur product would take to be obsolete and the money that can be earned within that period if u think that u might get that money in one instant then it may be worth thinking of selling it. However u have another option which i think would ensure better returns. License out the rights to manufacture and sell enter into a licensing agreement which would have a royalty portion which will ensure inflow of money. make a market survey of how much u think ur product is worth may be u cud collect royalty per piece sold
i hope this will be of some help

Title: Re: Selling a Patent
Post by d vagedes on Jun 20th, 2007, 7:28am
Mr. Calloura.  Establishing a value on intellectual property is much more complicated than determining a fair market price on your real property.

While most inventors are confident that their idea will make millions, there is a great deal of risk involved for the individual or company to turn your idea into a successful well marketed product that provides a return on investment.  Not to mention, the time, energy and capital required to do so.

On the other hand, the more sales history to support your valuation, a buyer is able to make a better decision as to risk and return.




Title: Re: Selling a Patent
Post by DerekC on Dec 17th, 2007, 10:51am
What are the dangers of talking to a big company that deals with stuff along the lines of my patent.  I would think they would just change it up a bit and sell their own version of it.  Companies are making things to get around my version now it seems.  I just haven't looked into how much those items are selling.   In my opinion, my patent is still has features that the products they have come up with don't do, or lack there of.  How dangerous would it be to go to one of those companies about buying my patent?

Thanks

Title: Re: Selling a Patent
Post by DJoshEsq on Dec 17th, 2007, 11:16am
Unfortunately, your questions are too difficult to answer in the abstract. No one on this forum will be able to give you advice on selling or offering the invention (or patent) for sale without specific knowledge of the patent/invention, you, the market, competitors and etc.  

If you are seriously considering selling your patent, speak to a patent attorney that can provide advice specific to your invention. You can email me joshsmith@mcdonaldhopkins.com to set up a time for a free consultation.


Title: Re: Selling a Patent
Post by DerekC on Dec 17th, 2007, 12:05pm
Thanks Josh, I sent you an email.

Derek

Title: Re: Selling a Patent
Post by John Ishel on Dec 19th, 2007, 11:58pm
I have a collection of Playboy magazines i would like to sell. This collection is roughly 175 magazines in all and dates from 1988 through 2004. Features Anna Nichole Smith, Pamela Anderson, and Jenny McCarthy plus a whole bunch of celebraties. I would like to sell this as a whole but would also sell individualy, Please contact me if you or anyone you would know could be interested. Thank you for your time and have a safe and happy holiday.

Title: Re: Selling a Patent
Post by Wiscagent on Dec 20th, 2007, 11:01am
The market price of used newsprint is about $300/ton. I believe that glossy magazine paper commands a lower price (higher clay content), so perhaps the Playboys are worth $200/ton or $0.10/lb.  So if your stack of magazines weight 25 lbs, you may have $2.50 worth of magazines.

Title: Re: Selling a Patent
Post by VG on Dec 20th, 2007, 11:39am
A couple of more specific questions / comments related to the same topics (not the used magazines - why would anyone buy those, I am just curious? ???)

1. Obviously, you should be contacting companies in the filed of your invention, but those could be numerous, plus there are venture capitalists and trolls that might be interested in your patent portfolo - how should you go about marketing your invention to the broader market?  It seems that OceanTomo-like is an alternative, but it does not seem to be working.   Are there are special IP brokers?

2. Any advice on the objective valuation of the patents?  May be someone can point to web-sites, books, articles?

Title: Re: Selling a Patent
Post by CriterionD on Dec 20th, 2007, 2:37pm

on 12/20/07 at 11:39:00, VG wrote:
1. Obviously, you should be contacting companies in the filed of your invention, but those could be numerous, plus there are venture capitalists and trolls that might be interested in your patent portfolo - how should you go about marketing your invention to the broader market?


There's no one answer.  Just make an effort to get in touch with people that matter, and have a solid pitch that you can give (and back up).  Be prepared for opportunities that may arise and be willing to think creatively.


Quote:
2. Any advice on the objective valuation of the patents? May be someone can point to web-sites, books, articles?


Yes.

Don't make the valuation process more complicated than it truly is, nor trust any valuation process that is too standardized.  Accurate patent valuation is affected by many variables.

I would say, simply do good research in order to evaluate the market potential for a product (and to locate potential competition), conduct or contract a good claims analysis to evaluate the strength of the patent in terms of protecting against any potential competition that you can envision, and analyze the findings to come up with a logical figure as to the total impact made by the patent.    



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