Market research is a very important step that many people seem to overlook when considering patenting an invention. Without a market, there is no profit. A market is not really the main concern because there is actually a market for just about everything conceivable. The real goal here is to weed out the market. Find people and locations where the invention would be most useful. It can be a great idea all day long, but if it is not getting into the hands of the people who want it, then it is pointless.
The inventor is also allowed to manufacture and market the product while the patent is pending. This will usually mean it will come out of the inventor’s pocket as many companies will not give actual funding to a product until it is licensed to avoid legal problems.
The truth of it is marketing is a bigger job than landing the patent itself. The main goal of marketing a patent is to seek out companies that would be interested in selling it. This means weeding through those that have good reputations and the ones that do not. This will probably end up coming out to a 50/50 situation. It is important to keep up with all the paperwork of every company that the inventor comes into contact with. Also, before revealing too much information, it would be wise to have each company sign a non-disclosure form. The best people to contact at these companies will be people in upper sales that will be motivated to buy the product as opposed to those who work in engineering will probably only be interested in their own inventions.
The best way to find the right companies suitable for the product at hand is by doing actual market research on products that are similar. When the inventor has found similar products that have performed rather well, they should find which companies the products were sold from. These same companies may either be interested in more products of this kind, or it gives the investor an idea to look for these types of companies that have not yet had a product of this kind available.
One way to market the product is by licensing or selling the patent. This can be used whether the patent has already been granted or if it is still pending. The same concept is needed that is used in marketing the product. Find companies that have similar products. The easiest way to do that is to do an internet search.
The best way to approach this is to connect with companies like InventHelp, which helps innovators and inventors to form their ideas into real inventions and send a marketing letter to the companies that would be most likely to be interested in the product. On a yearly basis, they organized the INPEX event that is really good for inventors and new marketers. You could join this event happening in June, visit this page: https://en.wikipedia.org/wiki/INPEX
The letter should include that the inventor is considering selling or licensing their invention. The best way to get a company’s attention is by sending a brochure with pictures of the invention as well as website information. That way the company has the opportunity to get more information about not only the invention but the inventor, too.
A patent license is something the investor will seek if they have no intention of marketing, creating, or selling anything based on the patent. Instead, the patent holder will have someone else do those things. A licensing is a legal contract and should involve an attorney during each step to make sure that each side of the license understands their part.
A license can be canceled if any part of the contract is not upheld; however, when a patent holder outright sells their patent it is permanent. All future profits and rights will be transferred over to the person who purchases the patent. In many ways, a license is a better way to go instead of selling if it is possible. The original patent holder will usually get a little money up front and get a certain percentage off of sales down the road, which can add up to a lot of money. When a straight sale is made the investor will typically get one flat rate all at once. This may seem like a lot of money at the time but can end up being significantly less than what could have been earned.