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[Aquila_Geminus]

I have recently had a patent application approved and issued by the USPTO, and intend to place the patent rights for sale.  However, I have had several different suggestions as to the potential monetary value of an outright sale and am at a loss as to what would be a reasonable offer and/or asking price.

I thought perhaps I could ask here, in the chance that anyone with experience in the sale of patents or general knowledge of the markeplace could offer any general or specific suggestions, specifically in regards to an appropriate dollar value to consider pursuing.

The patent is for a new form of recreational vehicle (for example, bicycles, scooters, skateboards). 

At this time I am reluctant to provide a direct link to view the patent, but will provide one via email. My email is aquila_geminus@hotmail.com. (this is for negotiating reasons...I wouldn't want a potential buyer/company doing a search on the patent # and unearthing a post where I openly reveal a complete lack of market knowledge. heh.)

I am not really interested in representation or partnerships or marketing assistance or anything of the sort; rather, I am merely seeking friendly suggestions, and any coorespondence is appreciated, and I will email anyone who might also reply here on this forum with their email.

Also, what would be other realistic ways to determine the market value of a patent in this field (recreational vehicles)?

Thanks,
aquila_geminus@hotmail.com 

[CriterionD]

Whats the amount of the market opportunity at stake for a potential buyer?  What kind of profits would that market opportunity mean for the potential buyer?  What other options does the potential buyer (and/or its competition) have to take advantage of the market opportunity without acquiring or infringing the patent?  If the potential buyer passes up on the opportunity, are there other companies in a position to take advantage of it?

While certain royalty rates may be common in a specific industry, when push comes to shove its all about what the buyer is willing to pay, and what the buyer should be willing to pay is largely influenced by the questions above. 

[Landers]

You should probably get the help of an attorney if you are going to negotiate with a company over an assignment or license.  They could make you an offer that sounds like a dream come true and you might still never see one cent.  They could offer you 20% of the gross sales of all vehicles they sell that use the technology, but you won't make a dime if they don't manufacture the products and just sit on the technology or license it to someone else or sue others for infringement.

An experienced attorney will know to insist on a minimum annual royalty provision among other things.

[Wiscagent]

In some situations an individual inventor or small business is better off receiving an up-front, flat payment for rights to practice their invention, rather than a royalty agreement.  Typically the "little guy" doesn't have the ability to properly monitor and audit a big company's sales.  Also if there is a dispute with the big company, the "little guy" probably doesn't have the legal muscle (i.e. money) to successfully challenge the big company.

By getting an up-front fee the little guy may have to settle for less than the invention is “worth”; but all the risk is transferred to the big company.

[DJoshEsq]

Comment above is not completely accurate.  It depends on how the agreement is drafted. You can include provisions requiring the "big company" to send detailed reports of sales of product and etc.  "Little guy" isn't always as helpless as you make it seem.

[CriterionD]

I think Richard was more just getting at, the little guy isn't in the greatest position to ensure the accuracy of the detailed reports being given to him by the big guy.  And even if he could ensure the accuracy, its probably nothing he'd care to deal with financially and otherwise.

[Wiscagent]

DJosh, note that I began my statement with "In some situations ..."  I was not pretending to make a broadly inclusive statement.

Being an "Esq" you are certainly aware that no matter how well drafted an agreement, there can be disputes.  Heck, that's one reason we need Esq's.  But at least a flat, up-front fee, in exchange for assignment or transfer of rights is relatively simple and less likely to result in a dispute down the road than an agreement that requires monitoring sales, product analysis (Does the new or improved product also infringe?) tracking shipments (How many of those widgets shipped to Niagara Falls, Ontario end up being sold in Niagara Falls, NY?) and simply trying to collect (What do you do when the big guy goes bankrupt or is just late or light on payments? - How much does it cost to collect?).