If I create a product and patent it, when a company comes to me and wants to do business with my product, should I sell the patent for X number of dollars, or should I keep it and ask for royalties (a percentage of the profits)?
2007-08-03 01:06:39 · 3 answers · asked by Jim C 5 in Business & Finance ➔ Other - Business & Finance
Dr. Solve - What the hell are you talking about?
2007-08-03 01:22:46 · update #1
It depends on what you can negotiate and what the buyer wants to do. Although patents have a life of 20 years, some of them have short-lived value. If your patent is for something that may be a short-lived fad, you may want to negotiate a fixed price. If it may be used extensively over a long period of time, a steady royalty income may be more to your advantage.
Another alternative is to ask for a fixed price up front plus a royalty. When the time comes, you will want to consult a lawyer to advise you as to the best alternative.
2007-08-03 01:12:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on the product and the amounts involved. Selling for a lump sum, you have to guess up front what the patent is worth. Collecting royalties is difficult. You have to find a way to keep track of the number of items produced.
Percentage of profits is a bad idea. The manufacturer can show that they are not making any money while selling the product...then you get nothing.
2007-08-03 08:13:20 · answer #2 · answered by regerugged 7 · 1⤊ 0⤋
if you hold the patent you will have to protect your patent against counter fitting your self do you want to do that
2007-08-03 08:27:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋