After months and years of trying to actualize your idea, you deserve an exclusive right over the ownership of your invention. This is at least as per the intellectual property rights whereby the copyright owner has the right on who may – or may not – use the copyrighted invention for the period in which the invention is protected.
This means that the invention cannot be commercialized, distributed, imported, or even used without the copyright owner’s consent. But how do you get this far with protecting your idea? Or better yet, how much does it cost to get a patent in the current world? Understanding all these questions is the only way to figure out how to profit from your patent rights.
Monetizing Your Patent Rights
Monetizing your copyrights involves understanding how to best leverage them for a profit. But this has first to start after you’ve fully acquired rights against infringement as the copyright holder.
After all, you’ve spent too much time and resources to create a new and unique invention. So, it only makes sense that you enjoy the benefits of your invention alone. But make no mistake, getting a copyright alone doesn’t guarantee commercial success straightaway. You have to know the different ways in which you can cash in on these exclusive rights, as explained below.
1. Licensing the Usage Rights
This is the most lucrative means to earn from your copyrights. After identifying an infringer trying to use your copyrights without authorization, you can agree on the way forward where they’ll be using the copyright at a negotiable fee. As a copyright holder, you’ll retain the right to earn royalty payments on future product sales.
There’s no restriction as to how many parties you can license to use your copyrights. You can grant an exclusive license to one company or various companies. The more you can get, the better for you. Also, you stand a better chance of earning big if you offer copyright licensing to a reputable firm that already enjoys consumers’ confidence.
There are various forms of patent licensing, with each bearing its advantages. One of the advantages is that the licensee assumes liability for any product defects. You also reserve the right to cancel the license if there’s a violation of the agreement. But for a start, it’s often advisable to conduct a background check on your potential licensee before agreeing to any licensing rights.
2. Sell the Patent
Another option of earning from your copyright is taking a huge payoff and focusing on something else. You are guaranteed a quick and larger payoff for your idea when you sell a copyright out rightly. This is an idea worth considering, given no one is ever guaranteed a copyright will succeed commercially.
However, you may want to think about this whole idea to know what you’re truly signing up for. For instance, you give up the right to future profits from your creation by selling the copyright.
Another factor is that selling a copyright is a huge gamble. First, your guaranteed pay may not be equivalent to what the copyright may generate in years to come. This is so because the copyright buyer may not agree to spend a lot on an unproven product or idea.
3. Use the Patent Yourself
This is arguably the best way to monetize your copyright. If you invent a product and sell it perfectly to the right market, all the profits earned will be yours. You won’t have anyone else to share the earnings on any basis. All you have to do is acquire the copyright licensing that bars anyone else from using your idea.
However, being a good innovator may not necessarily make you an equally good business person. So, unless your invention doesn’t require a high start-up cost, you may want to let someone else do that bit for you.
The costs of business bureaucracy and the marketing efforts needed also make this option a huge task. You’re also never assured if you’ll succeed with your product offering and cash in on it.
4. Sell Your Patents to Expanding Businesses
Sometimes finding a value that matches your copyright is never an easy affair. Besides, you want to sell to someone or a company that’ll respect and protect your ideas. That’s why as a copyright owner, it’s often important to research and target overseas companies that are on an expansion spree and willing to invest in new ideas.
The challenge, however, is that copyrights are location-based. So, you’ll need a copyright in every country you seek to protect your idea. Similarly, a company that expands into such a new territory will need to acquire copyrights to help mitigate any risk of being sued for copyright infringement.
Selling your copyrights to these expanding companies is often considered a good gamble. First, many of them are openly looking for individual copyright owners who are willing to sell. In addition, they offer the best opportunity to help in your idea’s growth and development, given the huge investment they’ll be willing to put forth.
5. Use the Patent to Acquire a Bank Loan
Copyright collateralization represents one of the latest and most important innovations in the debt market. Today, you can use your copyright as collateral for a bank loan if you’re more interested in leveraging the value of your invention than selling it.
Being a key practice in intellectual property financing, securing credit using your copyrights has immense benefits. You stand a better chance to find a big company that’s willing to trade in the copyright to maintain its competitive edge in the market.
Usually, when a bank agrees to offer you a loan by leveraging your copyright, it must establish its value based on the right due diligence. If your innovation is unique, you have a chance at acquiring significant financing.
Final Thought
Finding a way to commercialize and earn from your invention can be quite daunting. But with good research and a unique idea, you may be able to commercialize your copyright and earn big from it.